Australia’s Woodside to consider sending Sunrise gas to LNG plant in East Timor

Australian LNG player Woodside is willing to consider sending natural gas from the Greater Sunrise field to be liquefied at a greenfield LNG plant in East Timor, according to the company’s CEO Meg O’Neill.

Woodside operates the Greater Sunrise fields, located about 450 kilometers north-west of Darwin and 150 kilometers south of East Timor (Timor-Leste), with a 33.4 percent stake.

The nation’s oil company Timor GAP has a 56.56 percent stake while Japan’s Osaka Gas has a 10 percent stake.

According to Woodside, the fields contain 5.3 Tcf of dry gas and of 226 MMbbl condensate.

Following the establishment of a new maritime boundary treaty between Australian and East Timor in 2019, negotiations between the governments and the Sunrise JV on a new Greater Sunrise production sharing contract have been ongoing.

Both options on the table

Woodside previously preferred the option of sending the Sunrise gas to Darwin as there are two existing LNG plants in the region, namely the Santos-led Darwin LNG facility and the Inpex-operated Ichthys LNG plant.

However, the company is now willing to consider sending the gas to a new LNG plant in East Timor.

Woodside’s executive vice-president exploration and development, Andy Drummond, said on Thursday during Woodside’s investor briefing that Sunrise is “well-placed” to supply the Asian long-term LNG demand.

“The field has a couple of development options, including sending the gas to Australia to leverage existing LNG plants or a greenfield LNG train in Timor-Leste,” he said.

Australia's Woodside to consider sending Sunrise gas to East Timor LNG plant
Image: Woodside

Modular concept

Answering question from analysts during the investor briefing, CEO O’Neill said that there had been a lot of work in the LNG industry over the past years regarding design such as modular construction.

She pointed out that the proposed Commonwealth LNG plant in Cameron, Louisiana, with which Woodside recently finalized a supply deal, would use modular design.

“So the Timorese are very keen to have that development in country. And we recognize it’s an important national project for them,” O’Neill said.

“So we feel like it’s appropriate to reopen the concept evaluation, understand the technologies, understand the technical challenges,” she said.

Also, East Timor could seek international funding to help pay for the greenfield LNG infrastructure.

“Timor Leste has a lot of international friends, and international friends may want to help with some of that infrastructure that doesn’t exist today in Timor that would exist if we went to Darwin,” O’Neill said.

Most Popular

BGN delivers its first LNG cargo to Germany, secures Egypt deal

Switzerland-based energy trader BGN has completed its first LNG delivery to Germany, while simultaneously securing a deal to supply Egypt with LNG.

Samsung Heavy wins contract for Eni’s Coral Norte FLNG

South Korean shipbuilder Samsung Heavy has secured a preliminary contract for Eni's second FLNG project in Mozambique, Coral Norte (Coral North), according to shipbuilding sources.

Excelerate’s FSRU launched in South Korea

South Korean shipbuilder HD Hyundai Heavy Industries has launched Excelerate Energy’s new floating storage and regasification unit (FSRU).

More News Like This

Woodside inks LNG collaboration pact with Hyundai Engineering, Hyundai Glovis

Australian LNG player Woodside has signed a non-binding memorandum of understanding with South Korea's Hyundai Engineering and Hyundai Glovis, establishing a strategic framework to collaborate on LNG project development, engineering services, and shipping logistics.

Great Lakes clinches Louisiana LNG dredging gig

US firm Great Lakes Dredge & Dock has secured a dredging contract from compatriot Bechtel for dredging work on Woodside's Louisiana LNG project.

Woodside, Stonepeak wrap up Louisiana LNG stake sale

Australian LNG player Woodside has completed the previously announced sell-down of a 40 percent stake in its Louisiana LNG project to US private equity firm Stonepeak.

Woodside, Jera ink non-binding winter LNG supply deal

A unit of Australian LNG player Woodside and Japan's Jera have entered into a non-binding heads of agreement for the sale and purchase of LNG cargoes during Japan’s peak winter period.