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Viewing cable 07MEXICO2897, SPP/NAEWG: U.S.-MEXICO MEETING ON GAS HYDRATES

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Reference ID Created Released Classification Origin
07MEXICO2897 2007-06-04 21:41 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Mexico
VZCZCXRO4959
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #2897/01 1552141
ZNR UUUUU ZZH
P 042141Z JUN 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 7337
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEHOT/AMEMBASSY OTTAWA 2302
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
UNCLAS SECTION 01 OF 02 MEXICO 002897 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/MEX, WHA/EPSC, EB/ESC 
STATE FOR EB/ESC MCMANUS AND IZZO 
DOE FOR INTL AFFAIRS KDEUTSCH AND ALOCKWOOD 
DOE FOR A/DAS WARD AND A/S HARBERT 
 
E.O. 12958: N/A 
TAGS: ENRG EPET ECON MX
SUBJECT: SPP/NAEWG: U.S.-MEXICO MEETING ON GAS HYDRATES 
RESEARCH COOPERATION 
 
Introduction and Summary 
------------------------ 
 
1.  (SBU) Department of Energy (DOE) and U.S. Geologic Survey 
(USGS) officials discussed cooperation on gas hydrate 
research with Mexican Energy Secretariat and Petroleos 
Mexicanos (Pemex) officials under the auspices of the North 
American Energy Working Group (NAEWG) and the Security and 
Prosperity Partnership for North America (SPP).  The Mexican 
officials suggested that Mexico host a conference on gas 
hydrates in the fall of 2007, in Mexico, as a way to more 
closely examine the work the U.S. has done, especially 
through the DOE's Joint Industry Partnership (JIP).  While 
Mexican officials would like to cooperate more closely with 
U.S. efforts on gas hydrates, they remain concerned over the 
role of industry in the U.S. program as well as how 
proprietary Mexican seismic data would be treated by any 
North American or other international partnership. 
 
What are Gas or Methane Hydrates? 
--------------------------------- 
 
2.  (U) Gas hydrate is an ice-like crystalline solid formed 
from a mixture of water and natural gas, usually methane. 
They occur in the pore spaces of sediments, and may form 
cements, nodes or layers.  They are found in sub-oceanic 
sediments in the Polar Regions (shallow water) and in 
continental slope sediments (deep water) including in the 
Gulf of Mexico, where pressure and temperature conditions 
combine to make them stable.  Natural gas hydrates contain 
highly concentrated methane, important both as an energy 
resource and as a factor in global climate change. 
 
Mexico and Gas Hydrates 
----------------------- 
 
3.  (SBU) Rafael Alexandri, the Director General for 
Hydrocarbons at the Mexican Energy Secretariat told the U.S. 
side that while he saw many good reasons for Mexico to join 
the Joint Industry Project (JIP) for research on Methane 
Hydrates, he was not sure that joining would be in their best 
interests.  As far as Mexico was concerned, it would rather 
work less with foreign industry and more on a trilateral 
basis (U.S.-Mexico-Canada).  Nevertheless, Mexico was 
interested in cooperation. 
 
4.  (SBU) Discussing the background of Mexican Methane 
Hydrates research program, Alexandri said that Pemex had 'let 
a contract' with Western Geophysical, an exploration 
subsidiary of Schlumberger, to do work on the Shamit offshore 
field in the Gulf of Mexico.  As the company processed the 
data, they recognized a possible gas hydrate layer.  After 
reprocessing and taking a closer look, Pemex asked Nader 
Dutta, Chief Geoscientist for Schlumberger to study the 
result.  He confirmed the presence of hydrates. 
 
5.  (SBU) Following the discovery, the GOM formed a group of 
representatives of the Mexican energy sector to study gas 
hydrates.  The group included representatives from Pemex, the 
Mexican Petroleum Institute (IMP), and the Mexican National 
Autonomous University (UNAM).  The group is led by the 
Secretariat of Energy (SENER).  Two years ago, the Mexicans 
 
SIPDIS 
spoke with the Indians based on experience that Mexico had 
with the Indian firm Reliance to compare work by the two 
countries on hydrates.  Alexandri also noted that 2-3 months 
ago a research vessel took samples along the Mexican Pacific 
coast. 
 
6.  (SBU) Alexandri added that Dr. Dutta suggested to him 
that the Mexican Hydrates Group travel to Houston to discuss 
joining the Joint Industry Program (JIP), the group formed 
through the auspices of the DOE and the USGS for cooperative 
research on gas hydrates, but the Pemex group was told at 
that meeting that joining the JIP would require a USD 230,000 
membership contribution. 
 
7.  (SBU) Alexandri noted that Mexico does have seismic data 
it could provide to the JIP, though the presence of industry 
representatives in the JIP does make Mexico's participation 
more difficult politically.  Mexico would not be able to pass 
geophysical data to outsiders without a technology transfer 
agreement to govern the exchange.  Alexandri added that many 
of the JIP member companies do have formal agreements with 
Mexico.  Alexandri also noted that under the terms of the 
 
MEXICO 00002897  002 OF 002 
 
 
SPP/NAEWG the Canadians would also participate, though he 
added that Canada was coordinating much of its Methane 
Hydrate work in the arctic with Japan.  The group speculated 
that since Japan was paying for 90%  of the research, Canada 
would likely be unable to include arctic hydrate issues in 
any participation with Mexico and the U.S. through the NAEWG. 
 Canada should, however, be free to openly collaborate on 
marine gas hydrates issues. 
 
Presentation of U.S. Research Efforts 
------------------------------------- 
 
8.  (SBU) DOE/National Energy Technology Laboratory Manager 
for Methane Hydrates Research and Development Ray Boswell 
noted that the JIP is DOE's main focus for Gulf of Mexico gas 
hydrates research.  The USG funds 80% of the JIP's cost.  The 
data that members provide is kept confidential, but all 
results are made available to the public. The U.S. has a 
contract in place with the JIP that could allow up to USD 20 
million of USG funds to be spent on research, drilling 
cruises, and other activities. 
 
9.  (SBU) Boswell indicated that the JIP project manager (Dr. 
Emrys Jones) had indicated recently that the current fee to 
join the JIP was USD 189,000.  Regardless of whether Mexico 
paid the fee, Mexican representatives were very welcome to 
attend and participate in the JIP's public meetings.  Joining 
the JIP, however, would entitle Mexico to participate in 
executive board deliberations and vote on the direction of 
the research proposals the group would forward for approval 
to the DOE.  That said, there was also flexibility within the 
JIP.  Investment was important to the group -- but so was 
involvement and data donation.  Boswell suggested there might 
be flexibility on the fee in this regard.  All the members of 
the JIP would vote on such a change. 
 
10.  (SBU) Boswell suggested that in the interim, if Mexico 
were to work with the JIP group, a partnership could be 
started with SENER, the USGS, DOE and the JIP.  The group 
could also ask Pemex, Western Geophysical and other companies 
to participate.  On the Mexican side, the IMP and UNAM would 
also participate as they also have data.  Alexandri suggested 
that the Canadians could also be invited to join.  He thought 
the Canadians would be more comfortable in a group with the 
U.S.  Alexandri suggested that as a first step, the Mexican 
Government put together a robust seminar on Methane Hydrate 
research inviting a broad list of participants.  Boswell 
agreed that a seminar with all interested participants would 
be a good idea, and suggested that DOE hydrate project 
representatives would be encouraged to attend. 
 
Next Step: Mexican Gas Hydrate Conference 
----------------------------------------- 
 
11.  (SBU) Alexandri suggested that Mexico would work first 
with the U.S. to lay out the basics of the seminar to be held 
in September 2007 and then follow-up with Canada as suggested 
by the NAEWG framework.  Alexandri closed reiterating the two 
problems with the JIP as far as Mexico was concerned. 
 
-- Industry participation in the program created problems for 
Mexico as far as data sharing, though, Alexandri suggested, 
Mexico already has data sharing arrangements with many of the 
JIP industry members. 
 
--  Mexico would also have to examine the making public of 
data as a result of the work of the JIP to determine whether 
it could be in compliance with Mexican law. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
BASSETT