Russia reviving $6.5-bln energy bridge project with Japan
MOSCOW/KHABAROVSK. March 21 (Interfax) - Russia is re-addressing the $6.5-billion Khabarovsk -Sakhalin-Japan energy bridge project, which involves laying an underwater cable, in view of the fact that Japan's energy sector has suffered due to the earthquake and tsunami.
The press service of electricity company RAO Energy Systems East said that the company's chief, Ivan Blagodyr, had presented the project during a meeting with Russian Prime Minister Vladimir Putin on Saturday on Sakhalin.
The idea of building an underwater cable to Japan was earlier sounded by Deputy Prime Minister Igor Sechin the day following March 11's destructive earthquake and tsunami. Sechin estimated total electricity supplies fro Russia's Far East to Japan at 6,000 megawatts. The underwater would be constructed over a two-year period.
The Presidential Envoy to the Far Eastern Federal District Viktor Ishayev told journalists on Monday that the project's value is estimated at 186 billion rubles (around $6.5 billion). He said several sources would be used to finance the project: 50% in budget funds, 30% in loan funds and 20% in the company's own funds.
The project for building an energy bridge to Japan has existed since 1998. RAO UES Russia found a partner for the project in 2003 when it signed a partnership protocol with Sumintomo Corp. The holding planned to build a several steam-gas stations along with Japanese company in Sakhalin, as well as an underwater transmission line to Hokkaido and Honshu islands. Both sides decided on developing a feasibility study and preliminarily estimated the project at $1.9 billion. However, the project did not progress following this.
Ishayev said that the energy bridge project had been merged with plans for developing generating capacity in the Khabarovsk Territory. "The project is being tied to coal stations and using the Khabarovsk Territory and Sakhalin region's coal reserves," he said.
According to ES Vostok, the project foresees the construction of two coal stations and the setup of an underwater cable for the constant supply of power from Sakhalin to Japan.
The holding's press service confirmed for Interfax that the cost of building energy-bridge facilities will cost around 186.6 billion rubles as it stands now. The idea is to export power to the Sapporo region and Greater Tokyo at Honshu. ES Vostok's project supposes the building of two thermal power energy stations with 1000 mWt capacity apiece. Sovetskaya Gavan in Khabarovsk Territory and the town of Shakhtersk on the island of Sakhalin have been selected as the building sites. The plan also calls for laying a 150km underwater cable (500 kWt) from the Sovetskaya Gavan region to the town of Uglegorsk on Sakhalin and build power lines (also 500 kWt) from central Shakhtersk to the promontory Krilon on Sakhalin. Nothing has yet been announced regarding grid facilities for exporting power to Japan.
ES Vostok already has a confirmed investment program to 2013, which includes building in Sovetskaya Gavan a combined heat and power plant (120 mWt) and Sakhalin State District Power Plant #2 (330 mWt). The cost of the former project is 12.1 billion rubles, and launch is slated for 2013; the latter will cost an estimated 21.8 billion rubles and be put into operation in 2017. The company also plans to including another Sakhalin project in its investment program - the building of the fifth generating unit at Yuzhno-Sakhalin combined heat and power plant #1 (91.2 mWt). In order to carry out its projects, ES Vostok is prepared to bring Japanese investors on board. The holding has already reached a cooperation agreement with Mitsui & Co. Ltd.
Ishayev said Monday that Japan is currently suffering a power shortage, and Japan could invest in power production in Russia's Far East and receive electricity in return.
In addition, Russia announced that it is ready to boost supplies of liquefied natural gas and coal to Japan.