Timor-Leste president says stalled gas project 'finally happening'

Timor-Leste President José Ramos-Horta has announced that his nation will be signing agreements for the long-delayed Greater Sunrise gas project early next year, as the Southeast Asian country continues with the massive and controversial development. However, there remains significant doubt in the industry about the commercial feasibility of Timor-Leste's plan to transport gas from the Greater Sunrise fields to the south coast, where the government intends to establish a multi-billion dollar liquefied natural gas (LNG) plant and domestic gas facility.

The project has been plagued by delays, disagreements and uncertainty. In November, Woodside Energy, along with Timor-Leste's state-owned oil and gas company, agreed to mature and advance the plan. President Ramos-Horta told the ABC in Sydney that the Greater Sunrise project is finally happening after years and years of procrastination and deadlock.

He expressed confidence that within the next few months, they will sign the three main documents, which include the Petroleum Mining Code, Production Sharing Contract and fiscal regime. These documents will establish the regulatory and fiscal framework for the exploration and development of resources in Greater Sunrise. While analysts and government sources caution that a commercial agreement on the development plan is not guaranteed, and any final investment decision is likely to be years away, Woodside and Timor-Leste's government estimate that the first LNG from Greater Sunrise may be produced as early as 2032-2035, depending on concept selection and investment decisions.

The presidential spokesman emphasized the urgency of the situation, stating that Timor-Leste is heavily dependent on past oil and gas revenues to finance its Petroleum Fund, which has been depleted since the closure of the Bayu-Undan gas field last year.