PROTECTING COLOMBIA'S CRITICAL ENERGY

UNCLAS BOGOTA 000463 SIPDIS SENSITIVE DOE FOR MSMITH, SBROWNE, GWARD & LEINSTEIN; SOUTHCOM FOR CGONZALEZ E.O. 12958: N/A TAGS: ENRG EAID PGOV PREL CO SUBJECT: PROTECTING COLOMBIA'S CRITICAL ENERGY INFRASTRUCTURE - A USG ASSESSMENT REF: 07 BOGOTA 3017 ¶1. (SBU) SUMMARY: In follow up to the August 2008 Department of Energy (DOE) Deputy Secretary visit to Colombia and subsequent request by Colombian Minister of Mines and Energy Hernan Martinez, a team of DOE and U.S. Southern Command experts completed a preliminary scoping visit January 25-31, 2009 to assess risks to Colombia's critical energy infrastructure. The visit, which focused on priority electrical network, oil refining and fuel loading facilities identified by the GOC, represents a new area of bilateral collaboration in the energy sector and will result in recommendations to the GOC for increasing the reliability, survivability, and resiliency of Colombia's energy network. END SUMMARY Shared Interest in Protecting Energy Infrastructure -------------- -------------- ¶2. (SBU) During the visit of Acting Deputy Secretary of Energy Jeffrey Kupfer to Colombia August 7-9, 2008 (reftel), Energy Minister Martinez stressed critical energy infrastructure protection as a key area for potential bilateral cooperation based on a shared interest in maintaining safe and stable energy supplies in the region. Following a series of digital video conferences and preliminary data exchanges, in which Colombia identified its oil refining, gas distribution and electrical network facilities as its primary concerns, DOE sent a team of infrastructure and policy experts to Colombia January 25-31 for technical briefs in Bogota and site visits to identify areas of improvement for system reliability, resiliency and survivability of Colombia's highest priority sites. The Minister also requested DOE assistance in independently analyzing recent findings by contracted private security consultants. Crown Jewels: Refineries, Fuel & Electrical Networks -------------- -------------- ¶3. (SBU) Based on the initial briefings provided by DOE on critical infrastructure protection efforts in the United States and around the region, Minister Martinez identified Colombia's two refineries, its distribution pipeline network, and the electrical grid central control system as top priorities for DOE assessment. Accordingly, the team visited the National Electric Grid Center in Medellin, state-owned Ecopetrol's 250,000 barrel per day (bpd) Barrancabermeja refinery, and the joint Ecopetrol and Glencore-owned 80,000 bpd refinery in Cartagena. ¶4. (SBU) As part of the restructuring and privatization of the electrical sector begun in 1991, Colombia's electrical grid network is managed by the XM company through a centralized control center in Medellin that distributes 99 percent of Colombia's 13,227 MW in electricity generation capacity. Depending on annual rainfall, between 50 and 80 percent of Colombian generation is derived from hydroelectric facilities with most of the balance from fossil fuel-fired plants. Domestic electricity demand accounts for 8,762 MW, with surplus electricity exported to Ecuador and Venezuela. Colombia currently supplies 20 percent of Ecuador's electricity demand and is planning to connect to supply the Panamanian grid by 2012 via submarine cable. Nevertheless, Colombia's grid has experienced some blackouts, most recently in 2007 due to system and personnel error. ¶5. (SBU) The Barrancabermeja refinery supplies approximately 70 percent of Colombia's domestic fuel needs and serves as a central routing point for crude and refined products transported between Colombia's northern coast and central population and industrial centers. The 250-hectare facility generates USD 1 billion in revenues for Ecopetrol annually and employs 4,500 direct and contract. Ecopetrol plans to invest USD 10 billion between 2009 and 2015 to increase the refinery's recovery rate refined products from 80 percent to 95 percent of each barrel of crude. The Cartagena refinery supplies much of Colombia's domestic diesel fuel and is currently undergoing a USD 2.6 billion expansion to nearly double capacity to 150,000 bpd by 2012. Adjacent to the refinery, Ecopetrol operates a large refined products maritime loading dock for export shipments to the U.S. and Europe, as well as storage facilities with 475,000 barrels of capacity. Preliminary Observations -------------- ¶6. (SBU) Electrical sector: Upon completion of the site visits and technical discussions, the DOE team noted that Colombia's electrical system had proven adaptable in the face of long-term security threats posed by terrorism. Nevertheless, the team observed several potential vulnerabilities, particularly relating to the survivability and interconnectedness of grid substations as well as oscillations in the power supply that hinder connection to major industrial and refining facilities. Among the initial observations, the team noted the development of clear criteria for identifying critical substations, a careful evaluation of the relay system between substations, correction of power oscillations, development of a SCADA communications roadmap, and implementation of a rigorous crisis training program as areas for further evaluation. ¶7. (SBU) Oil and gas sector: The team observed that Colombia's two refineries and natural gas distribution network, while in generally good condition, also faced vulnerabilities in communications, power supply, and threat assessment and preparedness. Among initial observations, the Barrancabermeja refinery's consolidated communications facility, its connectivity difficulties with the local electricity grid, the absence of an overall policy for sharing threat information between facility operators and security officials, and superficial threat assessment efforts at the refinery in Cartagena, all represent system risks. Next Steps -------------- ¶8. (SBU) Based on this scoping visit, DOE will complete a draft report on critical infrastructure vulnerabilities, with U.S. Southern Command input, for initial GOC review by April ¶1. U.S. Southern Command, in coordination with DOE, is exploring the possibility of organizing a two-day conference in early May to formally review and discuss the report's conclusion with Colombian stakeholders in the Ministry of Mines and Energy, the National Hydrocarbons Agency (ANH), ISA, Ecopetrol, and the Ministry of Defense. Following this review process, Colombian authorities will evaluate resources for implementing the report's recommendations and addressing the identified vulnerabilities to the national energy sector's resiliency, reliability and survivability toward threats posed by security, natural disaster, and accidents. ¶9. (SBU) At the conclusion of the January 30 outbrief, Ministry of Mines and Energy officials inquired about receiving DOE advice on regulating commercial uranium mining. The DOE team agreed to forward points of contact in this area to the Ministry. ¶10. (U) The Department of Energy and U.S. Southern Command team members cleared this cable. BROWNFIELD