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 -------------- ¶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 -------------- ¶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