A Wood-led study with a “multi-disciplinary subcontracting team” comprising “specialist consulting partners” finds that the stalled Sunrise LNG project could be feasibly constructed on Timor-Leste’s southern coastline, instead of its operator Woodside’s initial plan to build the LNG processing plant at Darwin in Australia.
The distance from the Greater Sunrise basin, comprises the Sunrise and Troubadour gas and condensate fields, to the Timor coast is only 150 km, while it is 450 km to Darwin.

 

The study has considered key issues for developing, processing, and marketing gas with a strong focus on the delivery of gas to Timor-Leste for processing and LNG sales or the alternative of delivery of the gas to Australia. It is also included a range of disciplines including engineering, financial assessment and financing, local content, strategy and security, health, safety and environment, and socioeconomic analysis.

 

According to the Global LNG Database®, the Sunrise Joint Venture (SJV)’s shareholders are Timor-Leste (East Timor)’s government (Timor GAP) 56.56%, Woodside Energy (operator) 33.44%, Osaka Gas 10.00%.

 

Building the project in Timor-Leste would be “the most advantageous for the country, guaranteeing significant economic and social benefits,” the young island nation’s government has said, adding that processing the gas on its coast would provide lower operating costs, while “enabling better overall direct and indirect returns” for the country and “better direct upstream returns to Australia.”
Development of the Sunrise gas field at the earliest time is crucial for Timor as it has lost its main source of income generated from the Bayu-Undan gas field and 3.7 MMT/Y Darwin LNG plant in Australia.

 

Now, the question is, does Woodside have adequate financial resources and appetite to invest multi-billion dollars in the development of the Sunrise gas field and the LNG project in Timor while it is engaging in its priority mega LNG projects, Louisiana in USA and then Browse in Australia?

 

And, will Timor-Leste consider replacing Woodside with another operator such as a Chinese company, while the Australian company has consistently insisted that reaching an agreement on a new Sunrise development PSC is a prerequisite for any development activity?

 

Earlier, Timor’s President, José Ramos-Horta, had threatened that his nation could seek to attract Chinese investors if partners in the Sunrise project do not pipe the gas to the island’s land, as he was expected to revive the project to generate jobs and economic activity for the impoverished island nation.

 

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