The Timor-Leste government has taken a concrete step toward unlocking the long-delayed Greater Sunrise LNG project, signalling that the two-decade-old development is edging closer to physical execution after committing almost US$20m to early-stage technical work.

The spending covers two critical tenders — a US$5.6m geotechnical survey and a US$13m metocean survey — announced by the Ministry of Petroleum and Mineral Resources as groundwork for engineering design and offshore development planning.

Officials say the surveys are essential to de-risking one of the country's most strategically important projects, which has been stalled for years by commercial disputes, development concept changes and geopolitical sensitivities over gas processing options.

Speaking to ENB, a Woodside spokesperson said tenders are "part of the broader commercial and technical maturation work agreed between the Ministry of Petroleum and Mineral Resources and Woodside to advance studies on a Timor-based LNG development concept for Greater Sunrise. This is consistent with the parties' cooperation agreement."

They added that the surveys will contribute to a possible future concept selection recommendation and that as yet no concept has been selected.

The presidential view

Speaking exclusively to ENB last month, Jose Ramos Horta, the president of Timor-Leste, said he expects the partners of the Greater Sunrise joint venture - Timor GAP and Woodside - to announce in the middle of 2026 that the LNG project's processing facilities will be built in his island nation.

The opportunity

Discovered in 1974, the Greater Sunrise fields hold a total estimated contingent resource of 5.3 trillion cubic feet of natural gas and 226 million barrels of condensate, making it one of the most significant undeveloped gas resources in the region. The possibility of tapping into it as a viable project has been considered for many years, with discussion centred on the location of the processing facilities.

But with the fields halfway between Australia and Timor-Leste, the question has always been where will the Greater Sunrise joint venture - comprising TIMOR GAP (56.56%), operator Woodside (33.44%), and Osaka Gas Australia (10%) – opt to build the LNG processing plant – in Natabora or on Australian soil?

Recent momentum

In October, ENB reported that Australia and Timor-Leste had restarted formal negotiations to advance the long-delayed Greater Sunrise gas project, with officials meeting in Dili to discuss governance and legal arrangements for the shared offshore fields.

In late November, Woodside announced it had signed an agreement with the Timor-Leste government that sets a path to selecting the site for Greater Sunrise's LNG processing facilities by mid-2026, sparking a concept study to weigh Timor-Leste and Australian development options.+

This deal came as Woodside's lead on the Greater Sunrise project - Julie Fallon, Woodside's executive vice president, technical and energy development - gave an update on the scheme, saying: "The successful development of these fields offers both Australia and Timor-Leste an opportunity to generate stable and significant cash flow over a period of potentially 30 years, providing the Greater Sunrise joint venture with the potential shareholder value and growth."

The location question

Categorised as a "Least Developed Country" by the UN, President Ramos-Horta told ENB the decision to develop a processing plant in Natarbora, the greenfield region on the south of the island, would be "transformative" for his nation.

"The south coast is one of the least populated areas of the entire country – traditionally, Timorese live in the northern coast. The south coast is actually fertile… and could be a whole new economic hub for Timor-Leste, including agriculture and industries of all sorts.

"But going back to the '60s, everybody's talked about it, from the time of the Portuguese, they talk about the south coast will be the breadbasket team, but it never happened.

"Now, finally, it's going to happen, starting with the gas industry, which will generate possibilities for a fertiliser industry and fertiliser plants, which will aim for the world market, but also for our country's needs in terms of our strategic policy to make Timor-Leste self-sufficient in agriculture to double or triple our agriculture output," enthused the president.

For the president, the benefits for the JV partner in opting to build the LNG plant in Timor-Leste are something of a no-brainer.

"Even a small shopkeeper owner would look at it and see the advantage of bringing the pipeline to Timor-Leste.

"It's a bit like you're trying to compare the cost of taxes and labour between the United States and Mexico. Our labour cost is very low…we don't have any dispute or conflict with any of our neighbours, and…with the plant in Timur-Leste also, we are already several hundred kilometres closer to the gas energy market.

"And Australia, anyway, has endless opportunities all over Western Australia, northern Australia…full of resources," the president added.

"The Darwin option would give the Australian government a lot of headaches in terms of addressing Australia's commitment…to clean energy.

"In Timor-Leste, we don't have the problem. Our contribution to CO2 emission, emissions is 0.003%, so it's next to nothing.

"And because of our status as a least developed country, we have much more leeway and time frame to transition to renewables," he added.

Source: Energy News Bulletin