OREANDA-NEWS. September 03, 2007. 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, reported the press-centre of Northgaz.

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.