CI/KR RESPONSE FOR S/CT

C O N F I D E N T I A L ALGIERS 000221

SIPDIS

SIPDIS

FOR S/CT ROBERTSON AND NEA/MAG FLOWERS

E.O. 12958: DECL: 02/27/2018
TAGS: ASEC ECON PTER PGOV AG
SUBJECT: CI/KR RESPONSE FOR S/CT

REF: STATE 6461

Classified By: DCM Thomas F. Daughton; reasons 1.4 b, d.


1. (C) Per reftel, Embassy Algiers has identified eleven
critical infrastructure/key resource sites that if damaged or
destroyed might negatively impact U.S. oil and gas supplies
or U.S. military overflight and refueling. Algeria is a
major source of oil and natural gas for the United States,
second in the Arab world only to Saudi Arabia. In 2006, the
United States imported an estimated 650,000 barrels of
Algerian crude oil per day. In 2005, the U.S. imported
approximately 97 billion cubic feet of liquefied natural gas
(LNG),representing 15 percent of total U.S. LNG imports.

UPSTREAM
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2. (U) Hassi Messaoud zone (600 to 900 kilometers southeast
of Algiers) and Hassi R'Mel (400 kilometers south of Algiers)
are the two major upstream sites.

-- Hassi Messaoud: The oil field area and surrounding basins
account for the greatest share of crude oil production
exported to the United States and are estimated to hold 70
percent of total proven reserves. In 2006, Hassi Messaoud
produced around 440,000 barrels per day (bbl/d) of crude oil.

-- Hassi R'Mel: Hassi R'Mel is Algeria's largest gas field,
with proven reserves of about 85 trillion cubic feet. Hassi
R'Mel produces nearly a quarter of Algeria's total dry
natural gas production. The Hassi R'Mel field also produces
an estimated 180,000 bbl/d of crude oil.

MIDSTREAM
--------------


3. (U) There are two main oil transportation pipelines from
Hassi Messaoud and the surrounding areas: one to Skikda
(eastern coast) and another to Arzew (western coast). There
are two main gas pipelines linking Hassi R'Mel: one to Skikda
and one to Arzew.

-- Hassi Messaoud-Skikda Pipeline: 400 miles long with an oil
transport capacity of 520,000 bbl/d.

-- Hassi Messaoud-Arzew Pipeline: 500 miles long with an oil
transport capacity of 470,000 bbl/d.

-- Hassi M'Rel-Arzew Pipeline: 315-mile pipeline carries 4.38
billion cubic feet per year.

-- Hassi M'Rel-Skikda pipeline: 350-mile pipeline with a
capacity of 1.98 billion cubic feet per year.

DOWNSTREAM
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4. (U) There are two downstream sites that are responsible
for the bulk of gas and oil exports, including to the U.S.:

-- Skikda: The main coastal terminal for crude oil refining
is in Skikda (450 kilometers east of Algiers),which has a
daily refining capacity of 300,000 bbl/d.

-- Arzew: The principal coast terminal for liquefied natural
gas (LNG) is in Arzew (50 kilometers east of Oran),which
handles 40 percent of Algeria's total hydrocarbon exports and
all of its LNG, LPG, and oil condensate exports.

AIR TRANSPORT
--------------


5. (C) Algeria is an important location for refueling and for
overflight for USG aircraft. The airfields at Tamenrasset
and in Algiers (Boumedienne Airport),as well as the
civil-military air traffic control (ATC) system are critical
to USG flights in the region. The ATC system consists of
many components to include a primary headquarters, regional
control centers, radars and communications facilities located
around the country. A breakdown of one or more of the key
components in the system could adversely affect air traffic
over Algeria.

SITE PROTECTION AND SECURITY
--------------


6. (C) Hydrocarbon exports represent nearly 98 percent of
Algeria's total exports and are the engine of the Algerian
economy. Given the importance of these sites to Algeria's
economic livelihood, the Algerian military maintains a
constant presence at upstream and downstream sites. Airfield
security at Boumedienne Airport in Algiers is very good.
Although we have no specific information about security of
all the components in the entire ATC system, the Algerian
military is generally quite proficient at protecting military
infrastructure and facilities.
FORD