NATIONAL ENERGY COUNCIL REVIEWS ENERGY CRISIS

S E C R E T SECTION 01 OF 02 BAGHDAD 004356

SIPDIS

E.O. 12958: DECL: 10/21/2015
TAGS: ENRG EPET EFIN ECON MOPS PGOV PREL TU IZ
SUBJECT: NATIONAL ENERGY COUNCIL REVIEWS ENERGY CRISIS

REF: A. : A. BAGHDAD 4345 AND PREVIOUS

B. B. ANKARA 6231 AND PREVIOUS

Classified By: Classified by Economic Minister Counselor Tom Delare for
reasons 1.4 (b) and (d).



1. (C) SUMMARY: The National Energy Council October 20
reviewed the increasing attacks against energy infrastructure
and tactics used in response resulting in Iraq,s current
energy shortages. An increase in the effectiveness of
attacks in the north has cut off the electricity flow to
Baghdad and reduced fuel supplies to critical levels. A new
development is the initiation of attacks on railroad links
after the recently starting service. END SUMMARY.


2. (C) Deputy Prime Minister (DPM) Ahmed Chalabi chaired
National Energy Council meeting October 20 that reviewed
infrastructure security actions and the energy crisis.
Minister of Oil (MOO) Bahr Al-Ulum, Minister of Water
Resources Abdul Latif Rasheed, Minister of Trade Abdul
Mawlud, Director General (DG) of the National Dispatch Center
of the Ministry of Electricity Adil Mahdi Hameed, Deputy
Minister of Industry and Minerals Sami Al-Araji, Chief of
Staff of the Iraqi Armed Force LTG Abadi, Security Advisor to
the Electricty Protection Security Service BG Saad,
POLMINCOUNS, MNF-I STRATOPS, Deputy Director IRMO, and
Econoff attended.

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INFRASTRUCTURE ATTACKS AND PROTECTION STATUS
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3. (C) DPM Chalabi opened the meeting by saying "We are not
having fun yet.8 Chalabi said that there have been two
national blackouts in the past week and cuts in the
Kirkuk-Bayji electrical line, the Bayji-Baghdad LPG line, and
all three Kirkuk-al-Fatah pipelines. Iraq had lost two days
of southern oil exports from the electrical blackouts,
costing millions of dollars. Chalabi said that it was
&clear8 that the attacks are focused on linear
infrastructure, adding that Iraq needed to move up security
planning and operations in order to &get oil and electricity
going.8


4. (S) MNF-I reported that there had been 33 attacks on
infrastructure in the MND-NC area in the last 60 days,
concentrated in the Baghdad-Bayji and Kirkuk-Bayji corridors.
MNF-I had carried out 732 patrols (620 near Samarra),
arresting 40 suspects and discovering three IEDs in each
corridor.


5. (C) Chalabi noted that recent attacks appear to be more
effective. Ministers concurred with Chalabi,s hypothesis
that information was coming from insiders: attacks are
targeting infrastructure within 24-48 hours of repairs.

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REPORT OF THE MINISTRY OF ELECTRICITY
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6. (C) MOE DG Hameed reported that his major problem was
interdiction of four towers along the Kirkuk-Bayji electrical
line. He expected repairs to be completed on October 22,
enabling power to again flow to Baghdad from the north (NOTE:
The other two 400 KV lines from the North are already
interdicted near Samarra. END NOTE). Calling provision of
power to Baghdad his primary goal, Hameed said repair of this
line would send 500 MW/four hours of power to Baghdad.
Hameed said he suspected that electricity inspectors might be
the insiders providing information used for interdiction the
power lines. As a result of the security situation Iraqi Army
forces were accompanying the electrical repair crews while
they repaired electrical towers in remote areas.


7. (SBU) Hameed said the sabotage of the Mosul gas line had
reduced electrical generation by 100-110 MW. He also
reported that completion of the Musayyib power plant would
add 500 MW of power to the national grid. DPM Chalabi
instructed Hameed to take funds from the MOE budget and
finish the remaining five percent of the project. Hameed
stated the electrical grid had become very fragile from
repeated attacks and that security of the northern and middle
sections of the country remains a major concern.

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REPORT OF THE MINSTRY OF OIL
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8. (SBU) MOO al- Ulum said that Bayji, Basra, and Daura
refineries were operating at less than full capacity and
there is a crisis in fuel supplies. "The four day holiday
period combined with the electrical blackouts have reduced
the fuel reserves for gasoline from 13 million liters to 3
million liters," said al- Ulum. He said that &Turkey will
quit sending us fuel if we do not pay for our imports,"
adding that Turkish suppliers were sending too much diesel
and insufficient supplies of gasoline and kerosene.


9. (SBU) Chalabi said that Iraq does not have enough money to
pay for imports, adding that the GOI needed &$2
billion...for the rest of this year." (NOTE: It is not clear
whether this estimate includes the current debt to Turkey of
$926 million. END NOTE) Chalabi said that the Council of
Ministers had agreed to build a pipeline to Kuwait for
petroleum products from the Kuwaiti refinery.


10. (SBU) Asked if MOO could renovate the Musayyib refinery
to provide both heavy fuel oil for the new power plant there
as well as supplying additional petroleum products, al- Ulum
agreed to submit this proposal to the Council of Ministers
for approval.

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MINISTRY OF DEFENSE CONCERN ABOUT RAILROAD SECURITY
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11. (C) Deputy Commander of the Armed Forces Abadi said that
railroads are an additional security concern: an increasing
number of IEDs are being placed along the tracks. Abadi had
ordered patrolling along the railroad lines ahead of the
trains.
Satterfield