The Energy Ministry has submitted a draft resolution to the government to start the second stage construction of the Baltic Pipeline System (BPS-2), Deputy Energy Minister Stanislav Svetlitsky told journalists Friday according to RBC. According to the source, the construction could start as early as the first quarter of 2009. However, opinions are still split on the source of financing. Customs checkpoints in the Ust-Luga port should not be funded by Transneft, but by the Transportation Ministry and agencies handling frontier matters. Transneft, in turn, will pay for the construction of the pipeline with its equity and borrowed funds. Svetlitsky noted that it was not ruled out that the company could be granted a certain amount from the Investment Fund, but this had yet to be considered.
Government ponders launching BPS-2 construction
The Energy Ministry expects the pipeline's first stage with the capacity of 30m tonnes to be put in operation in the fourth quarter of 2011.