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Viewing cable 08BUCHAREST268, ROMANIA: A STRONG ALLY ON ENERGY DIVERSIFICATION

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Reference ID Created Released Classification Origin
08BUCHAREST268 2008-04-10 06:10 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bucharest
VZCZCXRO8266
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHBM #0268/01 1010610
ZNR UUUUU ZZH
P 100610Z APR 08
FM AMEMBASSY BUCHAREST
TO RUEHC/SECSTATE WASHDC PRIORITY 8133
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHAH/AMEMBASSY ASHGABAT 0042
RUEHTA/AMEMBASSY ASTANA 0014
RUEHKB/AMEMBASSY BAKU 0039
RUEHSI/AMEMBASSY TBILISI 0216
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RHEHNSC/NSC WASHDC
UNCLAS SECTION 01 OF 02 BUCHAREST 000268 
 
SIPDIS 
 
USEU BRUSSELS FOR AMB GRAY 
EEB FOR SMANN, SGALLOGLY 
EUR/FO FOR JGARBER, MBRYZA 
DEPT FOR EUR/CARC MICHAEL CARPENTER 
DOE FOR TTILLER 
NSC FOR LCATIPON 
STATE PASS USTDA FOR DSTEIN 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ENRG EPET EINV PGOV PREL RO
SUBJECT: ROMANIA: A STRONG ALLY ON ENERGY DIVERSIFICATION 
 
REFTEL: BUCHAREST 216 
 
Sensitive but Unclassified, not for Internet distribution. 
 
1.  (SBU) Summary:  In an April 2 meeting with visiting DAS Matthew 
Bryza, Ministry of Economy and Finance State Secretary Viorel 
Palasca strongly reaffirmed Romania's commitment to the Nabucco 
pipeline project.  Romania continues to seek U.S. support for its 
efforts to ensure energy security through supply diversification. 
The discussion focused on how to bring Azeri, Turkmen and possibly 
Kazakh gas into Nabucco.  The Government of Romania (GOR) is also 
committed to an LPG/LNG terminal project in the port of Constanta as 
part of its energy diversification strategy.  End Summary. 
 
2.  (SBU) In a cordial meeting with DAS Matthew Bryza, State 
Secretary Palasca emphasized that the GOR is a strong supporter of 
 
SIPDIS 
Nabucco, a project which it views as vital for European energy 
security, and that Romania will not pursue other projects that are 
competing with Nabucco, such as South Stream.  Palasca, who assumed 
his portfolio last autumn, has actively engaged Azerbaijan and 
Turkmenistan to encourage these countries to provide enough gas to 
fill Nabucco.  While he privately admitted that Romania may be 
interested in the White Stream pipeline project, especially if 
Ukraine joins NATO, Palasca believes that Nabucco is the best 
possible project, both for Romania and the EU. 
 
3. (SBU) Palasca requested USG support in engaging Turkey on gas 
transit for Nabucco, as well as Bosporus transit for tankers to 
supply the proposed LPG/LNG project in Constanta.  He took note of 
DAS Bryza's recommendation that, while Romania could expect support 
from the U.S., Romania itself should take the lead on the talks with 
Turkey on Bosporus passage.  Palasca also asked for USG support in 
attracting Turkmen gas to Nabucco, and in encouraging Azerbaijan and 
Turkmenistan to consider delivering LNG across the Black Sea to the 
proposed Constanta LPG/LNG terminal.  Palasca asked Bryza to pass 
the message to his Azeri and Turkmen counterparts that Romania would 
welcome energy investments by them along the lines of KazMunaiGaz's 
(KMG) purchase of Rompetrol last year. 
 
3. (SBU) Bryza and Palasca discussed the amount of gas available for 
Nabucco, with Palasca saying he understood that the Azeris could 
export at least 12 billion cubic meters of gas, possibly more if 
offshore fields are fully developed.  The Romanians expressed some 
concern that the Chinese could cut a deal for Azeri gas if there is 
no forward movement on Nabucco.  Palasca described progress made by 
the EU-appointed Nabucco coordinator, Josiah van Aartsen, in getting 
Turkey to negotiate a more favorable gas transit agreement with 
Azerbaijan under which Turkey would be a gas transit country, rather 
than a gas trader as it had initially envisaged. 
 
4. (SBU) The proposed LNG terminal at Constanta is another priority 
for Romania, Palasca confirmed.  DAS Bryza emphasized that the 
Romanians must take the lead on negotiating tanker passage through 
the Bosporus with Turkey.  Palasca responded that the GOR 
appreciates USTDA assistance in evaluating the feasibility of this 
project, and that Romania will develop the project with a U.S. 
partner if it proves commercially viable.  Romania considers 
Azerbaijan and Turkmenistan as possible alternate sources of LNG to 
avoid the Bosporus passage issue, he said, taking note of DAS 
Bryza's suggestion that the countries explore the possibility of 
locating a gas liquefaction plant on Georgia's Black Sea coast. 
 
5.  (SBU) Comment.  Although clearly nervous about neighboring 
countries' recent deals with Gazprom on South Stream, Romania 
remains a steadfast Nabucco supporter and so far shows no indication 
of wanting to cut its own deal with the Russians.  Still, the 
Romanians seek regular reassurance that the U.S. is fully engaged 
and that Nabucco remains viable despite recent developments.  We 
will continue to welcome visits from DAS Bryza and other key USG 
officials to help persuade Bucharest to stay the course on energy. 
Politically, Romania's leadership needs to demonstrate progress on 
energy supply diversification, not just with regard to Nabucco, but 
also on other projects such as the LNG terminal proposal.  End 
comment. 
 
6. (U) DAS Bryza did not have an opportunity to clear this cable. 
 
BUCHAREST 00000268  002 OF 002 
 
 
 
TAUBMAN