US embassy cable - 05ABUDHABI3767

C O N F I D E N T I A L ABU DHABI 003767 
 
SIPDIS 
 
DEPT FOR NEA/ARPI, EB/ESC/TFS, EB/ESC/IPC 
 
E.O. 12958: DECL: 09/06/2015 
TAGS: ETTC, EPET, ENRG, PREL, ECON, IR, TC 
SUBJECT: IRAN AND LIBYA SANCTIONS ACT (ILSA): SHARJAH/UAE 
IRANIAN GAS PROJECT 
 
REF: A. STATE 156227 
     B. ABU DHABI 3440 
     C. ABU DHABI 3237 
     D. DUBAI 265 
 
Classified By: Ambassador Michele J. Sison, for reasons 1.4 (b and d). 
 
1. (C) On September 4, Ambassador stressed our opposition to 
investment in Iran's oil sector to MFA U/S Abdullah Rashid 
Al-Noaimi, using Ref a talking points.  She emphasized deep 
USG concerns about Iranian actions and policies, including 
pursuit of WMD and delivery systems, support for terrorism, 
opposition to the Middle East Peace Process, and Iran's 
abysmal human rights record.  Ambassador stressed that 
Crescent Petroleum's plans to bring Iranian gas to the UAE 
and to create an infrastructure to do so are troubling.  She 
noted that this was an especially unfortunate development at 
a time when Iran, breaking its agreement with the EU-3, has 
restarted uranium conversion activities, which are the first 
step toward producing weapons-grade fissile material. 
Ambassador explained that, despite Dana Gas denials, the 
volumes involved and the infrastructure being created 
indicate that the source of the gas could only be from Iran. 
 
2. (C) U/S Al-Noaimi took the Ambassador's points on board, 
and said that the UAEG understands the USG's concerns about 
Iran.  He agreed that the UAEG and the USG shared concerns 
about Iran's nuclear program.  Ambassador urged that the UAEG 
reconsider this project, noting that the support of 
governmental entities within the UAE (the Emirate of Sharjah) 
for the project was troubling.  Al-Noaimi agreed to "take 
another look" at the project. 
 
3. (C)  Earlier, during a previously scheduled August 26 
visit to Ras Al-Khaimah, which would be a major customer of 
Dana Gas, CG Dubai made the same points to Ras Al-Khaimah 
(RAK) Crown Prince Sheikh Saud Al-Qasimi, who has long been 
aware of USG concerns related to Iranian gas.  Sheikh Saud, 
who has argued in the past that resource-poor RAK would need 
access to Iranian gas in order to further develop its 
economy, made it clear that Sharjah's Dana Gas IPO would 
benefit RAK.  While not explicitly acknowledging that the gas 
would be coming from Iran, he quipped that "we would prefer 
American gas; unfortunately we were given no choice about who 
our neighbors would be." 
 
5. (C) Comment:  We will continue to raise our opposition to 
this program with appropriate federal and emirate level 
officials.  Ambassador plans to raise this with the UAE 
Energy Minister on his return to the UAE and CG Dubai will 
raise it again with Emirate of Sharjah leadership. End 
Comment. 
SISON