VZCZCXRO6653
OO RUEHIK
DE RUEHTA #1814/01 2821037
ZNR UUUUU ZZH
O 091037Z OCT 09
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6570
INFO RUCNCIS/CIS COLLECTIVE 2024
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 1393
RUEHKO/AMEMBASSY TOKYO 2092
RUEHUL/AMEMBASSY SEOUL 1039
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHDC
RHEFAAA/DIA WASHDC
RHEHNSC/NSC WASHDC 1580
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEHAST/USOFFICE ALMATY 1922

UNCLAS SECTION 01 OF 03 ASTANA 001814 
 
SIPDIS 
 
STATE FOR SCA/CEN, EEB/ESC 
STATE PLEASE PASS TO USTDA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ENRG EPET MNUC KNNP KZ
SUBJECT:  KAZAKHSTAN:  U.S.-KAZAKHSTAN ENERGY PARTNERSHIP MEETING 
JOINT ACTION PLAN 
 
ASTANA 00001814  001.3 OF 003 
 
 
¶1.  (U) On October 7-8, the United States and Kazakhstan held the 
sixth meeting of the U.S.-Kazakhstan Energy Partnership.  Four 
working groups -- nuclear security and nuclear power, oil and gas, 
renewable energy and energy efficiency, and electric power -- took 
place.  After chairing a plenary session on October 8, U.S. Deputy 
Secretary of Energy Daniel Poneman and Kazakhstan's Minister of 
Energy and Mineral Resources Sauat Mynbayev signed a joint action 
plan, below, and a joint statement (septel). 
 
¶2.  (U) Begin text: 
 
United States-Kazakhstan Energy Partnership Meeting Summary Joint 
Action Plan 
 
Kazakhstan and the United States share a long and successful history 
of cooperation in the energy sector.  Our mutual objective is to 
strengthen and broaden this collaboration through the work of the 
U.S.-Kazakhstan Energy Partnership, jointly co-chaired since its 
inaugural meeting in 2001 by the leadership of the U.S. Department 
of Energy and the Kazakhstan Ministry of Energy and Mineral 
Resources.  Both sides agree that in order to strengthen our 
bilateral relationship, we need specific actions to match our shared 
goals. 
 
As part of our sixth meeting, we plan to build upon our success and 
work together to promote energy efficiency, clean energy 
technologies, diversification of energy sources, and 
investment-friendly regulatory environments.  We intend to continue 
our commitment to nuclear nonproliferation and to the safe and 
secure use of nuclear energy.  This meeting reflects the strategic 
vision of President Nazarbayev and President Obama on our respective 
energy strategies.  In the spirit of deepening our bilateral energy 
cooperation, this Summary Joint Action Plan serves as a guideline 
for detailed work plans.  The co-chairs task the Working Groups to 
develop these plans within two months of the signing of this Summary 
Joint Action Plan. 
 
The following are next steps for collaboration in four areas: 
Nuclear Security and Nuclear Power; Oil and Gas; Renewable Energy 
and Energy Efficiency; and Electric Power. 
 
NUCLEAR SECURITY AND NUCLEAR POWER 
 
The United States and Kazakhstan intend to continue effective 
collaboration to combat the threat of nuclear weapons proliferation. 
 We see important opportunities to work together on civil nuclear 
energy issues.  We plan to have a successful achievement of our 
common goals through the following: 
 
Next steps: 
 
--The Ministry of Energy and Mineral Resources (MEMR) of the 
Republic of Kazakhstan plans to seek funding in 2011 and 2012 for 
the construction of the Geocement Stone Facility, the sodium 
project, under the BN-350 Breeder Reactor Decommissioning Program. 
 
--MEMR and the U.S. Department of Energy (DOE) finish loading of the 
TUK-123 casks with spent fuel of BN-350 and complete the movement of 
the casks to the Baikal-1 storage facility by the end of 2010. 
 
--MEMR and DOE continue work to finish the conversion of the 
research reactor VVR-K at the Institute of Nuclear Physics from 
highly-enriched uranium (HEU) fuel to low-enriched uranium (LEU) 
fuel in 2014. 
 
--DOE and MEMR transfer the HEU bulk material at the Institute of 
Nuclear Physics to Ulba Metallurgical Plant for down-blending no 
later than the agreed upon schedule (May 2012, provided that all 
related activities were completed on schedule) while also examining 
opportunities to expedite completion of the project. 
 
--MEMR plans to identify initial safeguards cooperation activities 
 
ASTANA 00001814  002.3 OF 003 
 
 
by the end of calendar year 2009, such as training programs, 
workshops, or planning meetings.  By the end of 2010, DOE intends to 
submit a draft Safeguards and Cooperation Agreement for the 
Kazakhstan Ministry of Energy and Mineral Resources (MEMR) to 
consider.. 
 
--By the end of December 2009, DOE intends to submit proposals to 
establish a working group in 2010 to plan a technical-expert 
exchange program to share best practices at civilian nuclear 
energy-related facilities and explore ways to expand U.S.-Kazakhstan 
cooperation on small and medium-scale reactor development for the 
Kazakhstan market. 
 
--DOE and MEMR will hold a meeting in November 2009 to discuss 
Statements of Work for establishment of a Regional Training Center 
at the Institute of Nuclear Physics. 
 
--DOE and MEMR identify a date and location by March 2010 to execute 
fixed-site guard-force training by the end of calendar year 2010. 
 
OIL AND GAS 
 
We confirm our commitment to our Energy Partnership, which continues 
to support Kazakhstan's role as one of the world's leading reliable 
suppliers of energy.  Our Energy Partnership aims to develop further 
cooperation between international and Kazakhstan companies in the 
exploration, development, and transportation of Kazakhstan's 
hydrocarbon resources, as well as in the development of a commercial 
nuclear energy sector.  We pledge to advance common efforts to 
expand global energy supplies and seek new means to deliver those 
resources to the international market.  The establishment of 
transparent, competitive, market-based energy sectors will enhance 
global energy security and support our mutual efforts to combat 
climate change.  Both sides share the view that liberalization and 
diversification of our energy sectors will help us achieve our 
shared energy security goals. 
 
Next steps: 
 
--Both sides will facilitate access for Central Asian hydrocarbon 
production to international markets using multiple, 
commercially-viable routes. Both sides will support the development 
of a safe, reliable, and commercially-viable Kazakhstan Caspian 
Transportation System (KCTS) and expansion of the Caspian Pipeline 
Consortium (CPC). 
 
--DOE and the Environmental Protection Agency will facilitate 
technical dialogue and knowledge exchange to expand Kazakhstan's 
participation in the Methane-to-Markets initiative to reduce methane 
emissions and increase natural gas output, including associated 
gas. 
 
--DOE will share a draft proposal for the MEMR's consideration by 
December 2009 that will contain a range of appropriate options for 
the assessment of Kazakhstan's critical energy infrastructure, 
including the electric power sector. 
 
RENEWABLE ENERGY AND ENERGY EFFICIENCY 
 
We share a commitment to reinvigorate our cooperation in renewable 
energy and energy efficiency.  We plan to cooperate and exchange 
information in several areas including, but not limited to, 
industrial energy efficiency auditing and retrofitting; wind energy 
resource mapping; and renewable energy policy implementation and 
economic valuation. 
 
Next steps: 
 
--DOE and the MEMR will share information and convene seminars on 
best practices with renewable energy policy design and 
implementation and share perspectives on the economic value of 
renewable energy development for Kazakhstan. 
 
ASTANA 00001814  003.3 OF 003 
 
 
 
--DOE and the MEMR will also facilitate ongoing information exchange 
among technical experts on these renewable energy policy and 
economic valuation issues. 
 
--With Kazakhstan's approval, DOE intends to provide training 
programs and expert assistance on ways to support development of a 
robust industrial efficiency auditing and retrofit program in 
Kazakhstan, including the adaption of technical materials from the 
DOE Save Energy Now program. 
 
--If funding is available from the U.S. government, DOE is prepared 
to develop and provide training programs on a geo-spatial analysis 
tool that will overlay wind resource data with land-use, 
transmission lines, electricity load, and other geographic data to 
identify the most promising sites for wind development and educate 
policy officials, planners, and developers on these opportunities. 
 
--Before December 2009, DOE plans to begin sharing information and 
expertise on energy-efficient and earthquake-resistant building 
materials and building standards and labeling, materials 
certification, education and outreach, and demonstration projects. 
 
 
ELECTRIC POWER 
 
In order to incorporate new technologies in Kazakhstan's 
electric-power sector, we intend to expand our cooperation to 
improve regional integration and domestic power transmission 
reliability. This in turn will facilitate dispatch optimization, 
strengthen regional cooperation, and improve conditions for 
investment in new generation capacities and other sector assets. 
 
Next steps: 
 
--USAID will support the MEMR's efforts to develop a national and 
regional regulatory and market-based regimes, including relevant 
institutions, to increase opportunities for electric-power trade in 
a liberalized national and regional market environment in 
Kazakhstan. 
 
--USAID will support the conceptual development of a framework on 
the establishment of an integrated power market with neighboring 
countries. 
 
--By December 2009, DOE will share best practices and expertise on 
phasors and other new technologies, including U.S. and Kazakh 
business entities as appropriate, to help improve the reliability of 
Kazakhstan's electricity grid. 
 
--Both sides will jointly support dialogue within Central Asia on 
the rational and efficient use of the region's water and energy 
resources. 
 
--Both sides will jointly support improvements in the technical 
capacities of Central Asia's national Transmission System Operators. 
 
 
We pledge to continue our work on the Energy Partnership as 
specified in this Summary Joint Action Plan.  We express firm 
confidence that an enhanced Energy Partnership between our countries 
will promote prosperity and energy security in the 21st Century.  We 
agree to hold the next meeting of the Energy Partnership in 
Washington, DC, in 2010.  The exact date of the meeting will be 
agreed through diplomatic channels. 
 
SIGNED at Astana, in duplicate, on October 8, 2009, in the English 
and Russian languages by U.S. Deputy Secretary of Energy Daniel 
Poneman and the Republic of Kazakhstan's Minister of Energy and 
Mineral Resources Sauat Mynbayev. 
 
HOAGLAND