Key facts
- East Timor President Jose Ramos-Horta expects a deal for the Greater Sunrise gas project to be signed in July.
- A recent agreement between East Timor and Woodside Energy involves studying a 5 million metric ton project at the Greater Sunrise fields.
- The Greater Sunrise fields hold an estimated 5.1 trillion cubic feet of gas.
- Ramos-Horta cited improved trust between East Timor, Australia, and Woodside Energy as a key factor in overcoming decades of delays.
- A production timeline of 2032-35 has been forecast, with East Timor favoring an onshore plant development.
- Timor Gap, East Timor's national oil company, holds over 56% of the field.
East Timor President Jose Ramos-Horta expressed confidence that a deal for the Greater Sunrise gas project could be finalized in July, signaling a new era of cooperation between his nation, Australia, and Woodside Energy. This optimism follows decades of delays and disagreements over the project's development.
Last week, East Timor and Woodside agreed to study a project focused on the Greater Sunrise fields, which hold an estimated 5.1 trillion cubic feet of gas. Ramos-Horta highlighted an improved level of trust, a departure from previous criticisms of Canberra and Woodside regarding project delays. He pointed to increased work pace and supportive comments from Australian Prime Minister Anthony Albanese as indicators of this positive shift.
A timeline forecasting gas production between 2032 and 2035 has been announced, marking the first time both parties have agreed on a schedule. Ramos-Horta expects this timeline to be maintained. Previously, a major point of contention was whether to pipe the gas to Darwin, Australia, Woodside's preferred option, or to construct a liquefied natural gas plant on East Timor's south coast. While Woodside has moved away from insisting on a Darwin solution, they have not yet committed to an East Timor development.
The project's development was significantly stalled by a maritime boundary dispute resolved in 2018. East Timor has maintained its preference for a greenfield plant and has utilized its sovereign wealth fund to acquire stakes from ConocoPhillips and Shell. The national oil company, Timor Gap, holds over 56% of the field, located approximately 140 km south of East Timor and over 400 km from Darwin.
Analyst Saul Kavonic suggested that potential Chinese investment in an East Timor plant, despite an estimated $5 billion cost increase compared to a Darwin facility, could influence Canberra to support the Timor option for geopolitical reasons. However, Ramos-Horta stated a preference for working with Australia, Woodside, and Japan's Osaka Gas over Chinese firms that have expressed interest, emphasizing Australia's crucial role in East Timor's security and economic well-being. He affirmed East Timor's commitment to the onshore concept, willing to invest further from its sovereign fund to stimulate new local industries.