US embassy cable - 05BAGHDAD4230

C O N F I D E N T I A L BAGHDAD 004230 
 
SIPDIS 
 
E.O. 12958: DECL: 10/14/2015 
TAGS: ECON, ENRG, EPET, MOPS, MARR, PGOV, PINS, PREL, TU, IZ, Energy Sector, Petrolium 
SUBJECT: MGIZ02: POWER DISRUPTION, FUEL IMPORT SHORTAGES 
AND A MAJOR PIPELINE EXPLOSION ON THE EVE OF THE REFERENDUM 
 
Classified By: Economic Minister Counselor Tom Delare for reasons 1.4 ( 
b) and (d). 
 
1.  (C) Summary: On the eve of the Constitutional referendum, 
Iraqis face an almost general electricity blackout, another 
round of fuel shortages, and a major pipeline breach at the 
critical al-Fatah Crossing in the north.  A decision to amply 
supply Baghdad with fuel at this time has produced shortages 
elsewhere.  End Summary. 
 
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MAJOR BLACKOUT REPORTED ACROSS IRAQ 
----------------------------------- 
 
2.  (SBU) Ministry of Electricity advisor Ayser Habib 
reported that, as of 1845 hours October 14, Iraq is suffering 
a blackout in more than two-thirds of the country.  Power in 
the central Baghdad area and the Southern provinces went off 
line at approximately 1830 hours; the cause of the blackout 
remains unknown.  Power in the far north is still 
functioning, as are Mosul and Haditha dams.  Ministry of 
Electricity Advisor Haitham Yaseem reported that power surges 
due to the loss of a 400 kV line in the south, combined with 
the ongoing interdiction of the two Bajyi-Baghdad West 400kV 
lines, triggered instability in the national grid. 
 
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Fuel Supplies Low in the North 
------------------------------ 
 
3.  (SBU) Due to an earlier decision by the National Energy 
Council to plus-up fuel supplies in Baghdad, other parts of 
the country are suffering shortages.  Furthermore, since the 
State Oil Marketing Organization (SOMO) canceled and 
re-issued many of its import contracts effective October 1 
(see septel), the balanced distribution between the four 
types of fuel (gasoline, kerosene, diesel, and propane) has 
been disrupted.  On October 14, for example, 218 trucks 
crossed into Iraq from Turkey: 126 carried of them carried 
diesel, 89 carried propane, three carried kerosene, and zero 
carried gasoline.  Although Baghdad has 10.2 days of gasoline 
supply on hand as of October 12, the northern city of Mosul 
has only 1.6 days on hand.  With only a few days storage 
capacity, Mosul relies on daily shipments to keep up with 
demand.  Any interruption or diversion of imports is felt 
there almost immediately. 
 
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Explosion at al-Fatah 
--------------------- 
 
3.  (C) An October 12 explosion on an oil pipeline north of 
the al-Fatah Bridge, on the Tigris River near Bayji, ignited 
a temporary gas pipeline that runs over the bridge.  The 
subsequent massive fireball engulfed three pipelines: one 
crude oil and two natural gas lines (sour and dry gas), 
causing a portion of the bridge to collapse into the river. 
Sour gas delivery to the Bayji power plant has been 
interrupted and the Daura, Taji, and Mosul power plants are 
operating at reduced pressure, as gas is being re-routed 
through a smaller 8 inch line.  The cause of the pipeline 
explosion and full effect of this incident is not yet known; 
unconfirmed reports of a mortar attack are being 
investigated.  It will be several days before the fire can be 
extinguished and repairs even begun, although some oil and 
gas is being re-routed on other lines. 
 
4.  (C) The total economic impact of the disruption is not 
clear at this point, however there will be less electricity 
generation due to reduced delivery of Kirkuk gas to the 
northern power plants.  MoO has had to shut down the 
unaffected 26 inch crude oil pipeline, as related repairs to 
a manifold on that line cannot be completed until the fire is 
put out and the site cools off.  The fire is expected to last 
five days (Note: The long burn time is caused by the lack of 
valves in the pipeline, requiring the draining of the entire 
contents to the lowest point in the line, which is where the 
fire is located.  End Note). 
 
 
 
 
Khalilzad