Timor-Leste President José Ramos-Horta has announced that the first agreements for the long-delayed Greater Sunrise gas project will be signed early next year. The South-East Asian nation is pushing ahead with this ambitious and controversial development, despite lingering skepticism about its commercial viability. The plan involves piping gas from the Greater Sunrise fields to Timor-Leste's south coast, where the government aims to build a multi-billion-dollar liquefied natural gas (LNG) plant and domestic gas facility.
Mr. Ramos-Horta told the ABC in Sydney that the project is now "finally happening" after years of delays and deadlock. He stated that Prime Minister Xanana Gusmao is confident that the three main documents, necessary for regulatory and fiscal settings, will be finalized within the next few months. However, analysts and industry sources remain cautious, noting that a commercial agreement and final investment decision are still likely years away.
The project is critical for Timor-Leste, which relies heavily on its Petroleum Fund, now containing $26 billion. The IMF warned last year that this fund could be depleted by 2038 if not replenished. Mr. Ramos-Horta has previously warned of a "financial cliff" if the Greater Sunrise project does not proceed within a decade. The country has even threatened to turn to Chinese investors if an agreement with Woodside Energy cannot be reached.
Woodside Energy, which holds a one-third stake in the project, has previously indicated that the first LNG from Greater Sunrise could be produced as early as 2032-2035, subject to investment decisions. However, Timor's petroleum minister recently pushed the production start date back to 2034-2035, with hopes for a final investment decision by 2029. Despite the uncertainties, Mr. Ramos-Horta remains optimistic, stating that Woodside is "determined to follow through" with the project.