Russia UES, Japan Sumitomo sign power deal

MOSCOW -- - Russia's power monopoly UES said recently it had signed an agreement with Japan's Sumitomo Corp on building an electricity supply line from Russia's far eastern island of Sakhalin to Japan.

The project would include construction of a 4,000 megawatt gas electricity station and an underwater cable from Sakhalin to the Japanese islands of Hokkaido and Honshu.

A Royal Dutch Shell-led group developing oil and gas fields on Sakhalin gave the final go-ahead in May for a huge $10 billion LNG plant on the Pacific coast.

The project, known as Sakhalin-2, has already been producing oil from an offshore platform since 1999.

The group plans to develop a neighbouring gas field, build oil and gas pipelines which would stretch almost the entire 1,000-km length of the territory of Sakhalin, and construct an oil terminal and an LNG plant in the island's south.

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