US embassy cable - 05BAGHDAD4356

S E C R E T SECTION 01 OF 02 BAGHDAD 004356 
 
SIPDIS 
 
E.O. 12958: DECL: 10/21/2015 
TAGS: ENRG, EPET, EFIN, ECON, MOPS, PGOV, PREL, TU, IZ, Energy Sector 
SUBJECT: NATIONAL ENERGY COUNCIL REVIEWS ENERGY CRISIS 
 
REF: A. : A. BAGHDAD 4345 AND PREVIOUS 
     B. B. ANKARA 6231 AND PREVIOUS 
 
Classified By: Classified by Economic Minister Counselor Tom Delare for 
 reasons 1.4 (b) and (d). 
 
 
1. (C) SUMMARY: The National Energy Council October 20 
reviewed the increasing attacks against energy infrastructure 
and tactics used in response resulting in Iraq,s current 
energy shortages.  An increase in the effectiveness of 
attacks in the north has cut off the electricity flow to 
Baghdad and reduced fuel supplies to critical levels.  A new 
development is the initiation of attacks on railroad links 
after the recently starting service.  END SUMMARY. 
 
2. (C) Deputy Prime Minister (DPM) Ahmed Chalabi chaired 
National Energy Council meeting October 20 that reviewed 
infrastructure security actions and the energy crisis. 
Minister of Oil (MOO) Bahr Al-Ulum, Minister of Water 
Resources Abdul Latif Rasheed, Minister of Trade Abdul 
Mawlud, Director General (DG) of the National Dispatch Center 
of the Ministry of Electricity Adil Mahdi Hameed, Deputy 
Minister of Industry and Minerals Sami Al-Araji, Chief of 
Staff of the Iraqi Armed Force LTG Abadi, Security Advisor to 
the Electricty Protection Security Service BG Saad, 
POLMINCOUNS, MNF-I STRATOPS, Deputy Director IRMO, and 
Econoff attended. 
 
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INFRASTRUCTURE ATTACKS AND PROTECTION STATUS 
-------------------------------------------- 
 
3. (C) DPM Chalabi opened the meeting by saying "We are not 
having fun yet.8  Chalabi said that there have been two 
national blackouts in the past week and cuts in the 
Kirkuk-Bayji electrical line, the Bayji-Baghdad LPG line, and 
all three Kirkuk-al-Fatah pipelines.  Iraq had lost two days 
of southern oil exports from the electrical blackouts, 
costing millions of dollars.  Chalabi said that it was 
&clear8 that the attacks are focused on linear 
infrastructure, adding that Iraq needed to move up security 
planning and operations in order to &get oil and electricity 
going.8 
 
4. (S) MNF-I reported that there had been 33 attacks on 
infrastructure in the MND-NC area in the last 60 days, 
concentrated in the Baghdad-Bayji and Kirkuk-Bayji corridors. 
 MNF-I had carried out 732 patrols (620 near Samarra), 
arresting 40 suspects and discovering three IEDs in each 
corridor. 
 
5. (C) Chalabi noted that recent attacks appear to be more 
effective.  Ministers concurred with Chalabi,s hypothesis 
that information was coming from insiders: attacks are 
targeting infrastructure within 24-48 hours of repairs. 
 
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REPORT OF THE MINISTRY OF ELECTRICITY 
------------------------------------- 
 
6. (C) MOE DG Hameed reported that his major problem was 
interdiction of four towers along the Kirkuk-Bayji electrical 
line.  He expected repairs to be completed on October 22, 
enabling power to again flow to Baghdad from the north (NOTE: 
The other two 400 KV lines from the North are already 
interdicted near Samarra. END NOTE).  Calling provision of 
power to Baghdad his primary goal, Hameed said repair of this 
line would send 500 MW/four hours of power to Baghdad. 
Hameed said he suspected that electricity inspectors might be 
the insiders providing information used for interdiction the 
power lines. As a result of the security situation Iraqi Army 
forces were accompanying the electrical repair crews while 
they repaired electrical towers in remote areas. 
 
7. (SBU) Hameed said the sabotage of the Mosul gas line had 
reduced electrical generation by 100-110 MW.  He also 
reported that completion of the Musayyib power plant would 
add 500 MW of power to the national grid.  DPM Chalabi 
instructed Hameed to take funds from the MOE budget and 
finish the remaining five percent of the project.  Hameed 
stated the electrical grid had become very fragile from 
repeated attacks and that security of the northern and middle 
sections of the country remains a major concern. 
 
---------------------------- 
REPORT OF THE MINSTRY OF OIL 
---------------------------- 
 
8. (SBU) MOO al- Ulum said that Bayji, Basra, and Daura 
refineries were operating at less than full capacity and 
there is a crisis in fuel supplies.  "The four day holiday 
period combined with the electrical blackouts have reduced 
the fuel reserves for gasoline from 13 million liters to 3 
million liters," said al- Ulum.  He said that &Turkey will 
quit sending us fuel if we do not pay for our imports," 
adding that Turkish suppliers were sending too much diesel 
and insufficient supplies of gasoline and kerosene. 
 
9. (SBU) Chalabi said that Iraq does not have enough money to 
pay for imports, adding that the GOI needed &$2 
billion...for the rest of this year."  (NOTE: It is not clear 
whether this estimate includes the current debt to Turkey of 
$926 million.  END NOTE) Chalabi said that the Council of 
Ministers had agreed to build a pipeline to Kuwait for 
petroleum products from the Kuwaiti refinery. 
 
10. (SBU) Asked if MOO could renovate the Musayyib refinery 
to provide both heavy fuel oil for the new power plant there 
as well as supplying additional petroleum products, al- Ulum 
agreed to submit this proposal to the Council of Ministers 
for approval. 
 
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MINISTRY OF DEFENSE CONCERN ABOUT RAILROAD SECURITY 
--------------------------------------------- ------ 
 
11. (C) Deputy Commander of the Armed Forces Abadi said that 
railroads are an additional security concern: an increasing 
number of IEDs are being placed along the tracks.  Abadi had 
ordered patrolling along the railroad lines ahead of the 
trains. 
Satterfield