US embassy cable - 05ANKARA6386

C O N F I D E N T I A L ANKARA 006386 
 
SIPDIS 
 
DOE INTERNATIONAL AFFAIRS FOR CHUCK WASHINGTON 
 
E.O. 12958: DECL: 10/20/2010 
TAGS: ENRG, PREL 
SUBJECT: ENERGY MINISTER GULER WANTS TO WORK WITH U.S. 
 
REF: ANKARA 6310 
 
Classified By: CDA Nancy McEldowney.  Reasons 1.4 (b) and (d). 
 
1.  (C)  Summary.  With BTC nearly complete, Turkish Energy 
Minister Guler is looking for new ways to work with the 
United States on strategic oil and gas transmission projects 
in the region, as well as for more U.S. investment in 
Turkey's growing domestic energy sector.  He particularly 
wants U.S. support for a trans-Caspian gas pipeline that 
would give the EU an alternative to Iranian gas.  Post 
recommends that Secretary Bodman invite Guler -- who has 
never visited the United States -- to Washington as part of 
an effort to deepen bilateral energy cooperation.  End 
Summary. 
 
2.  (SBU)  Energy Minister Hilmi Guler laid out his 
pro-American orientation and desire to boost bilateral energy 
cooperation in an October 19 meeting with the Charge.  Guler 
said that he expected BTC "first oil" in Ceyhan in February 
2006 and that completion of the project was a triumph of 
Turkey and the United States over the many who had doubted 
our joint resolve.  He also expected the Shah Deniz project 
to be completed and operational before the end of next year. 
The Minister described these as the first steps toward his 
vision making Ceyhan into an energy supermarket serving the 
Mediterranean and Far East. 
 
3.  (SBU)  Beyond the projects underway and close to 
completion, Guler saw other opportunities for cooperation in 
building the Samsun-Ceyhan "bypass" pipeline and a gas 
pipeline from Iraq that would use the right of way of the 
existing Kirkuk-Yumurtalik oil line.  He has also been 
discussing with Israel the possibility of transferring oil by 
tanker and pipeline from Ceyhan to India and beyond, 
bypassing the Suez Canal (reftel).  He is looking forward to 
completion of the pipeline bringing Egyptian gas to Turkey 
via Jordan and Syria.  He hopes for greater U.S. commercial 
interest in Turkey's energy sector, including in Turkey's 
plans to build civil nuclear power plants. 
 
4.  (C)  But, as he has in other meetings with U.S. 
officials, including Secretary Bodman, Guler stressed that 
our key joint strategic emphasis should be working with 
Azerbaijan and Turkmenistan on a trans-Caspian gas pipeline. 
Guler said he has so far resisted EU efforts to obtain 
Iranian gas via Turkey; but it will be impossible for Turkey 
to maintain this stance as the accession process proceeds. 
Creating an alternative source of gas could also help 
undermine Iran's nuclear ambitions, Guler said.  Guler 
understood that Turkmenbashi's attitude was a major obstacle, 
but he thought it would be possible to work with and convince 
him of the merits of a trans-Caspian project -- if only the 
U.S. would engage. 
 
5.  (SBU)  Guler also highlighted his interest in providing 
more Turkish energy to Iraq.  In addition to the proposed 
expansion of electricity transmission capacity, he noted that 
Turkish firms could quickly build natural gas-fired power 
plants in northern Iraq and even loan Turkey's currently 
unused mobile oil generating plants. 
 
6.  (C)  Comment:  Guler is somebody we can work with and 
should be working with more.  He is very experienced and 
understands the challenges of dealing with Turkmenbashi, but 
sees no other alternative for keeping Iranian gas out of 
Europe.  He said he had never visited the U.S. (at least as 
minister) and would welcome the opportunity.  An invitation 
from Secretary Bodman would be an excellent opportunity to 
engage a forward-leaning Turkish minister who wants to work 
with us in our regional energy agenda, as well to help create 
new opportunities for U.S. firms in Turkey's growing energy 
sector.  End Comment. 
MCELDOWNEY