East Timor claims Woodside is still mulling onshore LNG plant

By Phaedra Friend Troy

According to a report from Reuters, the government of East Timor has revealed that Australian producer Woodside Petroleum is considering developing an onshore LNG plant in the Asia Pacific country.

The project would process gas from the massive Greater Sunrise reservoirs offshore East Timor and Australia.

Local government officials and Woodside have disagreed for years about the future location of the plant, Reuters continued. The government now claims that Woodside has settled on three possible locations.

“The three options are: building the pipelines to Darwin or Timor-Leste, and the third is the floating plant,” East Timor’s State Secretary for Natural Resources Alfredo Pires said.

East Timor wants the LNG plant to be on its soil to provide jobs to local workers.

On the other hand, Woodside claims that it continues to push for a floating LNG concept, which it believes will produce the best commercial returns.

“Following an extensive and rigorous commercial and technical evaluation of the various development options available to the Sunrise JV, including building onshore processing plants at Darwin and in Timor Leste, a floating LNG processing facility best satisfies the key development requirements outlined by the International Unitisation Agreement,” said Don Voelte, Woodsides’s CEO, in a Australian Stock Exchange announcement in April of this year.

The Greater Sunrise project contains both the Sunrise and Troubadour fields, and is located about 280 miles (450 kilometers) from Darwin in the Joint Petroleum Development Area administered by both Australia and Timor-Leste.

Woodside is the operator of the project with 33.4 percent interest. Partners include ConocoPhillips with 30 percent, Shell with 26.6 percent and Osaka Gas with 10 percent.

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