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East Timor is set to take a major step towards energy independence and economic growth as Woodside Energy confirms plans to start liquefied natural gas (LNG) production from the Greater Sunrise project by 2032. This development could transform the nation’s economy and strengthen Asia’s energy security. The concept involves:
- A greenfield LNG plant in Timor-Leste with a capacity of about 5 million tonnes per annum.
- A domestic gas facility and a helium extraction plant, as helium is highly valued for semiconductor and medical applications.
- Partners in the Greater Sunrise joint venture:
- Woodside: 33.44%
- Timor Gap (national oil company): 56.56%
- Osaka Gas: 10%
Challenges and Considerations
- Pipeline Route: The deep Timor Trough poses technical hurdles for transporting gas from the offshore fields to Timor-Leste.
- Cost Debate: Analysts estimate building LNG facilities in Timor-Leste could cost $5 billion more than in Darwin, Australia. Woodside previously resisted Timor-based processing but is now exploring modular LNG units to reduce costs.
- Regulatory Frameworks: Fiscal, legal, and regulatory agreements between Timor-Leste, Australia, and the Sunrise JV are still under negotiation.
What is the Greater Sunrise Project?
The Greater Sunrise gas fields lie in the Timor Sea, between East Timor and Australia. Discovered decades ago, the project has faced repeated delays due to disagreements over revenue sharing and the location of processing facilities. After years of negotiations, a breakthrough has been reached: the LNG plant will be built in East Timor.These fields are located:
- In the Timor Sea, roughly 150 km south of Timor-Leste and about 450 km northwest of Darwin, Australia.
- The area lies within the Joint Petroleum Development Area (JPDA) established under a maritime boundary treaty between Timor-Leste and Australia in 2018.
The fields hold significant resources, estimated 5.1 trillion cubic feet of natural gas and ~226 million barrels of condensate.
Why is This Important for East Timor?
East Timor’s economy relies heavily on oil and gas revenues, but existing reserves are declining. Greater Sunrise offers a lifeline:
Job Creation: Thousands of jobs during construction and operation.
Infrastructure Development: New LNG facilities will boost local capabilities.
Revenue Growth: Billions in potential income for government budgets and social programmes.
Why 2032?
The timeline reflects:
Technical Complexity: Offshore gas extraction and LNG processing require advanced engineering.
Financing Needs: Multi-billion-dollar investment must be secured.
Market Timing: Aligning with Asia’s growing LNG demand ensures profitability.
Global LNG Market Context
The Greater Sunrise project is a cornerstone for Timor-Leste’s economic future and regional energy security. Located in the Timor Sea, the fields hold an estimated 5.1 trillion cubic feet of natural gas and 226 million barrels of condensate, making it one of the largest undeveloped reserves in Asia-Pacific. Its development promises billions in revenue, vital for sustaining Timor-Leste’s economy as existing oil reserves decline. Beyond financial gains, the project will create jobs, attract foreign investment, and enable industrial growth through LNG and helium production facilities. Strategically, Greater Sunrise strengthens Timor-Leste’s position in global energy markets while fostering cooperation with Australia and international partners. The project also supports infrastructure development and energy independence, ensuring long-term stability. For Timor-Leste, Greater Sunrise is not just an energy venture—it is a transformative opportunity to secure prosperity and regional influence.
Challenges Ahead
The Greater Sunrise project faces significant technical, financial, and political challenges. Constructing a pipeline across the deep Timor Trough is a major engineering hurdle, increasing costs and complexity. Developing an LNG plant in Timor-Leste could add up to $5 billion compared to alternatives in Darwin, raising concerns about economic viability. Regulatory frameworks, fiscal terms, and maritime agreements between Timor-Leste, Australia, and joint venture partners remain unresolved, delaying progress. Additionally, global LNG market volatility and competition from established suppliers create uncertainty for long-term returns. Balancing national aspirations with commercial realities will be critical to turning Greater Sunrise into a sustainable success.
If successful, Greater Sunrise will not only reshape East Timor’s economy but also contribute to global energy diversification. For Woodside Energy, this project reinforces its role as a key LNG player in the Asia-Pacific region.
Woodside Energy is a leading Australian oil and gas company with a strong global presence in LNG production and energy solutions.
Known for its expertise in offshore gas development, Woodside operates major projects such as the North West Shelf and Pluto LNG, and is a key partner in the Greater Sunrise venture. The company focuses on delivering reliable, cleaner energy while investing in innovation and sustainability, including carbon reduction initiatives and renewable energy partnerships. With decades of experience and strategic collaborations, Woodside plays a pivotal role in meeting the Asia-Pacific’s growing energy demand and shaping the transition towards a low-carbon future.
The Maritime-Hub Editorial Team
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of Maritime-Hub. Readers are advised to research this information before making decisions based on it.
