US embassy cable - 05DJIBOUTI196

C O N F I D E N T I A L DJIBOUTI 000196 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR AF, AF/E; LONDON, PARIS FOR AFRICA WATCHER 
 
E.O. 12958: DECL: 02/27/2015 
TAGS: PREL, ECON, EPET, ENRG, DJ, QA 
SUBJECT: GUELLEH REQUESTS QATARI INVESTMENT OF NATURAL GAS 
AT DORALEH PORT 
 
REF: DJIBOUTI 
 
Classified By: Ambassador Marguerita D. Ragsdale. 
For Reasons 1.4 (b) and (d). 
 
1. (C) Summary: Acting Foreign Minister Mahamoud Ali Youssouf 
briefed Ambassador on the highlights of President Ismail Omar 
Guelleh's Qatar trip in a February 23 meeting she requested 
to discuss several issues (see septels). Youssouf said 
Guelleh's visit was in response to an invitation extended by 
the Emir of Qatar, Hamad Ben Khalifa Al-Thani, during the 
latter's last visit to Djibouti in 2003. He said Guelleh 
requested Qatari investment in a natural gas terminal at the 
new Doraleh Port project. Djibouti would hope to store the 
natural gas, export it to neighboring countries, as well as 
purchase for local energy needs. He said President Guelleh's 
agenda also included a visit to the Al-Jazeera television 
station to seek cooperation in training Djiboutian 
journalists and technicians. End Summary. 
 
2. (C) Youssouf said the idea of approaching the Qatari's to 
invest in Doraleh was based on conjecture that Qatar will be 
searching for markets to exploit its large natural gas 
reserves. Guelleh suggested during the visit that Qatar 
consider African markets and proposed Djibouti as a potential 
gateway. 
 
3. (C) Youssouf said Djibouti is pursuing natural gas 
because, along with many other African nations, it is focused 
on finding alternative energy sources to petrol based 
energies. An added concern for Djibouti is the imminent 
threat of water shortage. Most of the solutions for this 
problem involve desalination, which requires a significant 
amount of energy. Youssouf said after the initial investment 
of approximately 400 million USD to construct the storage 
facility, natural gas will be a cheaper method of energy 
production. He also stated that this terminal could easily be 
profitable for both Djibouti and Qatar upon export, citing 
electricity interconnections with Ethiopia and Yemen as 
creating possible consumers of exported natural gas. Youssouf 
also cited NEPAD's framework, which focuses on finding energy 
solutions, as proof of potential markets. Youssouf  said the 
Emir was very interested in the prospect. 
 
4. (U) According to an article printed February 17 in the 
government-run newspaper, La Nation, the visit also included 
discussions on opening Qatari markets to Djiboutian products 
such as salt and livestock, encouraging Qatari businessmen to 
invest in tourism and the private sector, and establishing 
closer bilateral ties. The article also indicated that Qatar 
had agreed to send experts to Djibouti to study the 
possibilities of the proposed natural gas terminal. 
 
5. (C) Comment: With Emirate Dubai already invested in 
Djibouti's port at Doraleh, and President Guelleh needing 
further essential development for his impoverished, 
strategically-placed nation, Qatar is a sound choice for 
dialogue. High on Djibouti's agenda is a new international 
airport and potential Qatari investment in such a project 
would go far in moving Guelleh toward his dream of making 
Djibouti the next Dubai. End comment. 
RAGSDALE