VZCZCXRO3854
PP RUEHDA
DE RUEHIT #0129/01 0731225
ZNR UUUUU ZZH
P 131225Z MAR 08
FM AMCONSUL ISTANBUL
TO RUEHAK/AMEMBASSY ANKARA PRIORITY 7533
RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0067
RUEHEG/AMEMBASSY CAIRO PRIORITY 0109
RUEHDA/AMCONSUL ADANA PRIORITY 2346
RUEHC/SECSTATE WASHDC PRIORITY 7952

UNCLAS SECTION 01 OF 02 ISTANBUL 000129 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG IZ TU EG
SUBJECT: IRAQ DISCLOSES PLAN TO EXPORT GAS TO SYRIA IN 
TRILATERAL TALKS 
 
REF: ANKARA 277 
 
------------ 
Summary 
------------ 
 
¶1. (SBU) Iraqi Energy officials stated at a meeting with 
Turkish and U.S. officials in Istanbul that Iraq will 
export natural gas to Syria within two years. Subsequent 
expansion of this gas field in western Iraq would aim at 
exports to Europe via Turkey and the Nabucco pipeline, 
though realizing this larger goal would require the U.S. 
and Turkish Governments to work together to help the 
GOI develop a strategic vision for natural gas.   The 
Turkish delegation proposed and an additional electrical 
utility line to feed Mosul, and all three delegations 
agreed on better communication to avoid interruptions of 
electrical service to Iraq.  The U.S. and Turkish 
delegations then proposed agenda topics for a subsequent 
meeting.  In a separate meeting with EUR DAS Bryza, 
Egyptian energy officials said that Egypt could export 
gas to Europe if current capacity is increased. End 
Summary. 
 
--------------------------------------------- ------ 
Iraqi Gas to Flow to Syria with Two Years 
--------------------------------------------- ------ 
 
¶2. (SBU) The head of the Iraqi delegation to the Gas 
Trilateral meeting in Istanbul on March 1 stated that 
natural gas from western Iraq could be delivered to Syria 
within two years. Energy consultant to the Prime Minister,s 
Office Abdulillah Al Amir said that with assistance from 
Syria, Iraq is developing four gas wells at the Akkas Field 
in western Anbar province that can export 50 million cubic 
feet (mcf) per day to Syria. Furthermore, the second phase 
of the Akkas field could deliver up to 500 mcf per day by 
¶2015.  Al Amir stated that the second phase is intended to 
supply Europe through the Arab pipeline with up to 6 BCM or 
more. Moreover, the Iraqi Oil Ministry can move forward on 
the second phase without the passage of the Hydrocarbon Law 
since the Iraqi Parliament could approve it as a separate 
bill. 
But al Amir also warned the GOI had not yet developed a 
strategic vision to move toward phase II gas exports to 
Europe, and needed prodding from the USG and GOT to expand 
its strategic thinking.  The head of the American delegation, 
EUR DAS Matt Bryza, welcomed the prospect of exporting 
Iraqi gas and received strong agreement from the Turkish 
delegation for joint cooperation with the GOI on strategic 
gas issues. 
 
¶3. (SBU) Selahattin Cimen, Acting Undersecretary for the 
Turkish Ministry of Energy and Natural Resources, also 
embraced this news and emphasized that Turkey,s current 
infrastructure could incorporate Iraqi gas with little 
difficulty.  He also inquired about the status of Iraq's 
national gas strategy the GOI is developing in 
collaboration with Shell, beginning with a survey of 
Iraq,s gas reserves.  Al Amir responded that his ministry 
will need to review Shell,s survey for about a year before 
they are able to construct a national plan.  Turkish Acting 
Special Envoy for Iraqi, Murat Ozcelik argued for the GOI 
to make a special effort to facilitate energy cooperation 
and trade between the two counties, perhaps by providing 
Turkish businesspeople advance notice of tenders and 
technical specifications for energy projects. Bryza 
countered that free market principals, especially 
transparent tendering, should take precedence in this 
process. 
 
--------------------------------------- 
Expanding Electrical Service to Iraq 
--------------------------------------- 
 
¶4. (SBU) The Turkish Ministry of Energy and Natural 
Resources proposed increasing the supply of electricity to 
Iraq by doubling the capacity of the electrical grid.  An 
additional line capable of 850 MW power to Mosul was 
proposed in partial fulfillment of the August 7, 2007 
memorandum of understanding (MOU) signed between the two 
countries. In addition, Turkey will provide technical 
training to Iraqi personnel as stipulated in the MOU. 
 
¶5. (SBU) Dr. Falah Al Amri, Director General of the Iraqi 
Oil Marketing Company, appreciated the additional capacity, 
but complained about the interruption of electrical service 
from Turkey in January. Ozcelik responded that the Turkish 
government did not cut Iraq,s power; rather a private 
 
ISTANBUL 00000129  002 OF 002 
 
 
Turkish company, Kartet (retel), was forced to stop 
service due to contractual issues.  Bryza suggested 
establishing a conduit between the Turkish and Iraqi 
governments to work out technical disputes on electricity 
and gas matters.  The Turkish delegation strongly seconded 
this proposal. 
 
--------------------------------------------- ------------- 
Setting an Agenda for the Next Talks 
--------------------------------------------- ------------- 
 
¶6. (SBU) The Turkish and American delegations were eager to 
announce key points for the meeting; however, the Iraqi 
delegation was hesitant to make any announcement. Both Al 
Amir and Al Amri from the Iraqi delegation explained they 
were only technocrats who did not make policy. 
Furthermore, any announcements regarding gas exports would 
anger some members of parliament, thus prompting 
unnecessary conflict.  An agenda for future talks was 
drafted in lieu of an announcement from the current 
meeting. The Turkish and American delegations also 
suggested meeting on this issue around every three months, 
with an agenda circulating to the parties one or two weeks 
before the meeting. Al Amri did agreed to this suggestion. 
 
¶7. (SBU)  Bryza put forward the following four points, in 
order of importance, as a possible agenda for the next 
meeting: 
 
--  Meet Iraqi domestic demand for gas. 
--  Develop the Akkas gas field as quickly as possible.. 
--  Expand Akkas gas production following the tender process 
that begins in two months. Pursue export of Akkas gas 
into the Arab pipeline, and onward to Turkey 
and Europe via the Turkey-Greece-Italy and Nabucco pipelines.. 
--  Use the trilateral process to facilitate communication 
and resolve commercial disputes before problems escalate 
and affect electricity service or oil shipments. 
 
 --------------------------------------------- ------------- 
Bryza Meets with Egyptian Gas Officials 
--------------------------------------------- ------------- 
 
¶8. (SBU)  On the margins of the Iraqi Trilateral meetings 
Egyptian Ministry of Petroleum Deputy Executive Director 
for Production Abdullah Ghorab told Bryza that Egypt hoped 
to export natural gas to Turkey and onward to Europe, but 
currently did not have excess gas.  Domestic needs, LNG 
exports, as well as exports to Jordan and Syria through the 
Arab pipeline will likely strain current capacity.  Currently 
only half of Egypt,s reserves are developed, thus providing 
the 
possibility that significant volumes Egyptian gas could 
eventually 
go into Nabucco, according to Ghorab. 
 
 ¶9. (SBU)  The Egyptian delegation welcomed Bryza,s comment 
regarding the prospect for Iraqi gas to enter into the Arab 
Pipeline and for the possibility of Egyptian gas exports to 
Turkey and into the TGI and/or Nabucco pipelines.  They 
expressed 
readiness to work with the USG and companies developing 
Egypt,s 
gas reserves to develop a plan for future exports to Turkey 
and 
the rest of Europe. 
 
¶10. (SBU) The Egyptian officials claimed they have 
developed condensed natural gas (CNG) technologies over the 
last few years and would be ready send CNG ships to Greece 
and Cyprus within one to two years. Ghorab, however, 
declined to disclose the name of the company assisting 
Egypt with this technology. 
 
¶11. (U)  DAS Bryza has cleared this cable. 
WIENER