The long-delayed Sunrise liquefied natural gas project in Timor-Leste has regained momentum, more than 50 years after the gas fields were discovered. A key unresolved issue is the final destination for the exported gas, with a decision pending between piping it to Timor-Leste or to existing facilities in Darwin, Australia.

Government Commitment and Budget Allocation

The Timor-Leste government is actively pushing for the gas to be processed domestically. The Council of Ministers recently authorized a $16 million budget for the Ministry of Petroleum for the 2025-2027 period. This funding is specifically designated for the development of the Greater Sunrise gas field and for completing the studies necessary to ensure the construction of a gas pipeline to Timor-Leste. The Minister of Petroleum & Mineral Resources stated the budget is intended "to ensure that the gas pipeline comes to Timor-Leste." The funds will cover ultra-high-resolution geophysical and seismic surveys for the Greater Sunrise and Bayu-Undan pipelines, which are essential for the project's technical and planning phase.

Renewed Momentum and Project Planning

Following a period of stalled progress last year, discussions between the governments of Timor-Leste and Australia have recently restarted, with more meetings planned for early December to finalize the necessary legal and fiscal frameworks. Concurrently, the Sunrise joint venture is working with the government on an "investability proposal." The national oil company, Timor GAP, which is the majority owner of Sunrise, is targeting the start of front-end engineering and design next year, with a final investment decision on an onshore Timor LNG concept expected by mid-2026.

Development Concepts and Economic Viability

Woodside Energy, the project operator, had previously maintained that building a pipeline across the Timor Trench to a new onshore LNG facility in Timor-Leste was not economically viable, favoring the use of existing facilities in Darwin. However, in 2024, the company clarified it has no preferred concept and will consider the results of a concept study conducted by UK contractor Wood. This study examined development, processing, and marketing issues, with a strong focus on both the option of delivering gas to Timor-Leste and the alternative of delivering it to Australia. A Woodside spokesperson confirmed the study incorporated updated cost estimates and considered socio-economic, environmental, and strategic benefits across potential development pathways.

Project Details and Potential Integration

The Sunrise development is located 140 kilometres south of Timor-Leste and 450 kilometres northwest of Darwin. It consists of the Sunrise and Troubadour gas condensate fields, which were discovered in 1974. The Greater Sunrise complex holds contingent resources of 5.1 trillion cubic feet of gas and 226 million barrels of condensate. According to Timor GAP's website, natural gas production is expected by 2028-2030. There is also potential for the project to integrate with other developments; a proposed redevelopment of the Bayu-Undan field could involve a new 250-kilometre subsea pipeline to Timor-Leste's south coast, potentially connecting to both the Chuditch discovery and the Sunrise field.

Stakeholder Engagement and Historical Delays

Woodside remains engaged with both the Timor-Leste and Australian governments, as well as the other Sunrise joint venture participants, to evaluate technical and commercial factors. This engagement has included a visit by Woodside to Timor-Leste's south coast and a reciprocal visit for a Timorese delegation to Woodside's operations in Western Australia. The development of the Sunrise project was delayed for years by a now-resolved maritime boundary issue and by ongoing disagreements on the development concept. The current joint venture ownership is Woodside (33.44%, operator), Timor GAP (56.56%), and Osaka Gas (10%).

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Ting Nan Wang,Amanda Battersby,Russell Searancke. All rights to the original text and images remain with their respective rights holders.