The Baltic Pipeline System (BTS-2) is not likely to be cost-efficient. Several officials representing the Russian Industry and Energy and Foreign Ministries claim that this project could harm Russia's relations with Germany, Poland, and the Baltic states, the RBC Daily newspaper reported today. Experts say that the project worth nearly $2.3bn is projected to never be carried out, despite the fact that it has already been approved by Russian officials.
As reported earlier, BTS-2 was originally planned as an alternative pipeline to the Druzhba pipeline and as a backup pipeline for oil transit to Europe. The construction of the project could begin only after it is approved by the government. However, a source close to LUKoil said that oil transit through the new pipeline would cost $22 per tonne more than if when it is transported through the Druzhba pipeline.