Russia's Marine Energy Tunnel To USA.

Russia's Economy Ministry on April 18 said Moscow planned to build the world's longest undersea tunnel, a 64-mile transport and pipeline link which would run from Siberia to Alaska and supply the US with oil, natural gas and electricity. The $65 bn tunnel would run in three sections, connecting two islands in the Bering Strait between Russia and the US. A 3,700-mile transport corridor from Siberia into the US will feed into the tunnel, which would contain a high-speed railway, highway, pipelines and power and fiber optic cables, according to TKM-World Link, the public-private partnership which would build and control the tunnel. The tunnel's construction would take about 10-15 years. Investors in TKM-Link would include Russian Railways, Unified Energy System (UES) and pipeline operator Transneft, according to a press release from all three firms. Russia and the US may each own 25% in the project.

The World Link will save North America and Far East Russia $20 bn/y on electricity costs, said Vasily Zubakin, deputy CEO of Hydro OGK, UES' hydropower unit and a potential investor. But others sharply criticised the plan. Yevgeny Nadorshin, chief economist with Trust Investment Bank in Moscow said: "The project is a monster. The Chinese are crying out for our commodities and willing to finance the transport links, and we're sending oil to Alaska. What, Alaska doesn't have oil?"

Gazprom Management Committee Deputy Chairman Alexander Ananenkov in late March chaired a meeting on construction of oil and gas production systems on the Yamal Peninsula. The Bovanenkovo field is a key project to develop Yamal. The group examined the needs for Bovanenkovo's development and the Bovanenkovo-Ukhta gasline. The group discussed opportunities of Russian firms providing pipes, shut-off and control valves and gas pumping units for the Yamal development. Special attention was paid to the Bovanenkovo-Ukhta gasline to run via Baydaratskaya Bay (Kara Sea).

Yamal has 10.4 TCM of recoverable gas, 228.3m tons of condensate and 291.8m tons of oil. Total reserves of Yamal's largest fields - Bovanenkovo, Kharasavey and Novoportovskoye, operated by Nadymgazprom (a Gazprom unit) - are 5.9 TCM of gas, 100.2m tons of condensate and 227m tons of oil. The 115 BCM/y of projected gas output from Bovanenkovo is to increase to 140 BCM/y in the long-term. To deliver the gas to the UGTS, Gazprom is to build a 2,451-km gasline including a 1,100-km link from Bovanenkovo to Ukhta. Gazprom units are to bring on stream in 2011 the first 15 BCM/y upstream facilities for the Bovanenkovo field as well as a Bovanenkovo-Ukhta gasline.