The expenditure of US$16 million is to be carried out between 2025 and 2027 and aims to “develop the Greater Sunrise gas field and carry out the necessary studies and initiatives to ensure the construction of the pipeline to East Timor,” according to a statement from the Cabinet.
“The authorised amount covers the performance of geophysical surveys and ultra-high-resolution seismic surveys relating to the Greater Sunrise gas export pipeline and the Bayu-Udan pipeline, which are essential for the technical and planning phase of the project,” the statement added.
In March, the government also approved expenditure of US$40.5 million (€35.2 million) to implement the Tasi Mane project, namely for the Suai supply base and the motorway between Zumalai and Natarbora.
The Suai highway and supply base are essential conditions for the extraction of hydrocarbons from Greater Sunrise to Natarbora, on the south coast of the country.
Located 150 kilometres from East Timor and 450 kilometres from Darwin, the Greater Sunrise project has been at an impasse, with Dili advocating the construction of a gas pipeline to the south of the country and Woodside, the consortium’s second largest partner, leaning towards a connection to the existing facility in Darwin (Australia).
The consortium consists of Timor Gap (56.56%), operator Woodside Energy (33.44%) and Osaca Gas (10%). The impasse led the joint venture to commission a conceptual study by British company Wood Group, which confirmed the feasibility of developing Greater Sunrise in East Timor.
The British company studied four main options, namely the development of Greater Sunrise with pipeline to East Timor, to Darwin, to the Ichthys gas field, also in Australia and operated by Japan’s INPEX, and to a new Liquefied Natural Gas facility also in Australia.
The East Timor Liquefied Natural Gas option stands out for its lower operating costs and, by allowing better overall direct and indirect returns for East Timor, will have a major socio-economic impact on the country,” says the Timorese Government.
The executive also points out that Greater Sunrise in East Timor, according to the study, could have a “greater positive impact on Gross Domestic Product and job creation, while also offering the highest returns for the development consortium” of that gas field.
The permanent maritime border agreement between East Timor and Australia stipulates that Greater Sunrise, a shared resource, will have to be divided, with 70% of the revenues going to East Timor in the case of a gas pipeline to the country, or 80% if processing takes place in Darwin.
The pipeline connection to the south of East Timor is considered by the Timorese authorities to be strategic for the country’s economic growth.
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