East Timor’s President has stated that the country is more willing to cooperate with the Australian government and its partners, as well as Japanese companies, rather than Chinese companies, on large-scale natural gas projects.
President Jose Ramos-Horta of East Timor expressed in an interview with Reuters for the first time that East Timor still prioritizes collaboration with the Australian government and its partner Woodside Energy, as well as the Japanese company Osaka Gas, to develop the country’s Greater Sunrise gas field, instead of considering partnerships with China and Kuwait as proposed last year.
The gas field is located approximately 140 kilometers (87 miles) from East Timor and holds reserves of 5.1 trillion cubic feet of natural gas. Timor Gap, the state-owned oil company of East Timor, owns 56.6% of the shares, while Australia’s Woodside Energy holds 33.4% and Osaka Gas holds 10%.
Previous interest from Chinese companies sparked concerns in Australia about China’s increasing influence in the Pacific region.
President Ramos-Horta mentioned that East Timor has been delaying cooperation proposals from Chinese state-owned companies like Sinopec and Kuwait companies, stating, “If anyone is delaying, it is actually ourselves.”
The development of the gas field is estimated to cost billions of dollars, with estimated revenues of around $65 billion in 2018. However, disagreements between the parties on where to transport the natural gas have led to delays. One side prefers to send it to a new LNG plant in East Timor, while Woodside Energy aims to transport it to the existing Darwin LNG facility in Australia, causing the project to stall.
President Ramos-Horta emphasized that agreements regarding the Greater Sunrise project must be signed before the upcoming federal election in Australia in the first half of the year to avoid further delays, but currently, no meetings between the two countries are scheduled.
Furthermore, President Ramos-Horta stated that he expects East Timor to become a member of the Association of Southeast Asian Nations (ASEAN) within this year.
Situated in Southeast Asia, East Timor is located in the eastern part of the Indonesian archipelago, bordering Australia to the southeast. The country heavily relies on oil and gas revenue and foreign aid, with abundant petroleum and natural gas resources in the Timor Sea. On November 11, 2022, during the 40th and 41st ASEAN Summits, a statement was released by ASEAN leaders regarding East Timor’s application for ASEAN membership, agreeing in principle to admit East Timor as the 11th member of ASEAN and granting it observer status.