IRAQ ENERGY COUNCIL ADDRESSES FUEL SHORTAGE

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 000766

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/08/2016
TAGS: ECON EPET IZ KCOR MOPS
SUBJECT: IRAQ ENERGY COUNCIL ADDRESSES FUEL SHORTAGE

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


1. (C) SUMMARY: The National Energy Council (NEC) directed
that fuel be moved by rail from Bayji to Baghdad March 9.
DPM Chalabi said he would submit draft fuel law to Council of
Ministers (COM) to liberalize private import of fuel. NEC
requested Ministry of Defense (MOD) increase security of
electricity lines to Baghdad. NEC asked MOD to investigate
the numerous tanker trucks crossing into Syria at Walid
Crossing. END SUMMARY



2. (C) DPM Chalabi called a meeting of the NEC on March 7
to assess the fuel shortage and electricity problems in
Baghdad. The meeting was attended by the Minister of Trade
(MOT) 'Abd al-Basit Mawlud, Acting Minister of Oil (MOO)
Hashim al-Hashimi, Minister of Water Resources (MOWR) Abd
al-Latif Rashid, MG Sa,ad of the Electricity Protection
Security Service (EPSS) of the Ministry of Electricity (MOE),
Senior Advisor Adel for the National Dispatch Center of MOE,
BG Hassan of the EPSS of the MOE, BG Kamal of the Ministry of
Defense (MOD),POLMIL, IRMO, MNF-I, and ECONOFF.

-------------- --------------
INITIATION OF RAIL MOVEMENT OF FUEL FROM BAYJI TO BAGHDAD
-------------- --------------


3. (C) DPM Chalabi requested IRMO and MNF-I support for
using trains to bring gasoline from Bayji to
Baghdad beginning on March 9. Rail cars were reported
loading at Bayji on March 8. He also asked the Coalition to
fly him and the MOO to Bayji to oversee the loading and
initial movement of a fuel train. IRMO and MNF-I agreed to
support. (COMMENT: We understand that rail shipment of fuel
from Bayji has not taken place since the war. This would
provide some welcome redundancy to the system, but is opposed
by the truckers. END COMMENT)

-------------- --
SECURITY FOR OIL AND ELECTRICITY INFRASTRUCTURE
-------------- --


4. (C) BG Kamal reported that the MOD had received
information of a potential future attack on refineries in
Iraq, no additional details provided. He reported
coordination with the MOE for protection of electrical repair
crews. The MOE requested security for the major electrical
lines to Baghdad, especially the two major 400 KV lines from
Bayji. The MOE reported that the lines would be repaired by
March 21. DPM Chalabi requested MOD guard the 400 KV
electrical lines from Mussaib Power Plant to Baghdad. (NOTE:
4th US Division controls this battlespace and these
powerlines are protected by a combination of EPSS, 6th Iraqi
Army (IA) Division, and the 17th Strategic Infrastructure
Battalion (SIB). END NOTE) The MOO complained that his
repair crews could not get access to a military installation
in the vicinity of Tikrit for repairs of a natural gas line.
DPM directed MOO to coordinate through the PJCC (Provincial
Joint Coordination Center) for access to military facilities.


5. (C) MNF-I reported that progress had been made on
securing the linear infrastructure. The 26-inch oil
pipeline from Kirkuk to Bayji has been open for 20 days. The
4th Iraqi Army Division and the 101st US Army Division
were successfully partnering with the Strategic
Infrastructure Battalions (SIBs) in protecting the Kirkuk
to Bayji energy corridor. Four more SIBs would be trained in
April and four additional SIBs in August. The 16th SIB,
stationed south of Baghdad, however, had personnel detained
and undergoing interrogation by the Ministry of the Interior
as suspects in infrastructure attacks. The 6th and 9th IA
Divisions were now responsible for security of the
infrastructure in the vicinity of Baghdad (NOTE: The
Commanding General of the 6th IA Division was assassinated
in Baghdad on March 7. END NOTE).

--------------
NO FUEL IN BAGHDAD
--------------


6. (C) MOO reported supplies of gasoline and LPG had been
exhausted in Baghdad on March 6. Fuel was being trucked into
Baghdad from the south at 500,000 gallons per day. (NOTE:
Normal consumption of gasoline in Baghdad is approximately
1.25 million gallons per day. END NOTE) Fuel was not being
delivered from Bayji to Baghdad, however fuel from Bayji was
delivered by truck to other parts of Iraq. Daura refinery,
in Baghdad, was not currently producing gasoline due to
maintenance problems.


BAGHDAD 00000766 002 OF 002


--------------
ELECTRICITY IMPROVING
--------------


7. (C) DPM Chalabi said that Iraq had produced 101,000 MWHs
of electricity on March 6. This was the highest amount since
summer 2005. He restated his goal of producing 6000 MW in
the summer of 2006. He said hours of power had increased 20%
recently in both Baghdad and nationwide. The Minister of
Water Resources stated 767 MW had been produced from
hydropower. (NOTE: Water levels have increased due to
recent rain and snow in the mountains of Turkey and
reservoirs are 95% full in Iraq. END NOTE)

--------------
FUEL TRUCKS ON SYRIAN BORDER
--------------


8. (C) DPM Chalabi asked the MOD to deploy elements to the
Walid Crossing into Syria to check on the reported crossing
of 1200 fuel trucks into Syria. He said, "Anyone who is
hauling diesel or gasoline should be arrested, as it is
illegal to export refined petroleum products out of Iraq."
(NOTE: Chalabi announced in a late 2005 NEC meeting that it
was illegal to export refined fuel from Iraq during the
energy shortage. END NOTE)

-------------- --------------
TEMPORARY FUEL IMPORT REGULATION TO BE SUBMITTED TO COUNCIL
OF MINISTERS
-------------- --------------


9. (C) DPM Chalabi asked that a draft copy of the
regulation to permit temporary liberalized fuel imports under
the CPA legal interpretations be delivered to his office by
the US Embassy. (NOTE: We provided this to him on March 8.
END NOTE) He said he would submit it for approval to the
Council of Ministers to immediately permit legal import of
fuel into Iraq by private firms. (NOTE: Embassy will follow
up on this issue. A copy of the draft text was provided to
NEA/I ECON. END NOTE)


KHALILZAD