Timor-Leste Pushes for Australian Partnership in Greater Sunrise Gas Project Amid Economic Pressures

DILI, TIMOR-LESTE – Timor-Leste’s President, José Ramos-Horta, has reaffirmed his government’s commitment to advancing the long-delayed Greater Sunrise gas project, emphasizing a strong preference for partnering with Australian energy companies. In recent statements, Ramos-Horta expressed support for working with Woodside Energy and Japan’s Osaka Gas to develop the vast gas reserves, a move seen as crucial for Timor-Leste’s long-term economic stability.

The Greater Sunrise field, located in the Timor Sea, is estimated to contain 5.1 trillion cubic feet of natural gas, with a potential value exceeding $50 billion. However, disagreements between Timor-Leste and Australia over whether the gas should be processed in Timor-Leste or Darwin, Australia, have significantly delayed the project’s development. Timor-Leste has long insisted on an onshore processing facility to maximize local economic benefits, including job creation and infrastructure development, while Woodside and Australia have favored processing in Darwin due to existing facilities and lower costs.

With the nation’s sovereign wealth fund—the Petroleum Fund—rapidly depleting, Timor-Leste is under increasing pressure to secure new revenue streams. The fund, which finances approximately 85% of the government’s annual budget, is projected to run out by the early 2030s if new sources of income are not secured. Given these economic realities, Ramos-Horta stressed the urgency of finalizing an agreement before Australia’s upcoming federal elections, warning that prolonged negotiations could push the project into further uncertainty.

Beyond economic imperatives, the project also carries geopolitical significance. China has shown interest in financing infrastructure for the project, raising concerns among Australian and Western policymakers about Beijing’s growing influence in the region. However, Ramos-Horta’s preference for Australian partners suggests a strategic effort to maintain strong ties with key regional allies while securing the best possible deal for Timor-Leste’s development.

As negotiations continue, the outcome of the Greater Sunrise project will play a pivotal role in shaping Timor-Leste’s economic future, determining whether the young nation can successfully transition from oil dependency to a more diversified and sustainable economy.

Media Laloran Tasi Mane

6 Fevereiru, 2025