Timor-Leste President Jose Ramos-Horta announced plans for a deal with Australia on the Greater Sunrise project, a massive fossil fuel project that is vital to Timor-Leste’s economic future. The project aims to tap trillions of cubic feet of natural gas, but disputes over maritime boundaries and gas refining locations have stalled exploration for years. Ramos-Horta stated that an agreement will be signed by November, potentially sooner, to develop the gas field.
Timor-Leste, Asia’s youngest nation that gained independence in 2002, is reliant on its oil and gas reserves to support its nascent economy. Ramos-Horta highlighted the interest in Greater Sunrise from countries like China, Japan, and South Korea. The decision on whether the resources will be sent to Timor-Leste or Australia is pending an independent study. Despite the potential benefits of piping resources to Darwin, Ramos-Horta questioned this option and indicated that a final decision would be made by both governments.
Woodside Energy, the operator of the Greater Sunrise project, expressed the challenges associated with the project’s complexity during an investor call. Concerns in Australia about Chinese funding for the project have added to the complexity, especially given Beijing’s expanding regional influence. Timor-Leste, located near Australia’s coast, has navigated its relationship with Canberra, which has been tense following a spying scandal in 2018. Ramos-Horta acknowledged the unkindness of the bugging incident but emphasized the positive reset in relations between the two countries.
In a wide-ranging interview, Ramos-Horta discussed the evolving dynamics with Australia and described the country as a true and great friend. Despite historical tensions, he noted that every country engages in surveillance activities against others. The focus now appears to be on moving past these issues and working towards mutual cooperation and partnerships. The importance of the Greater Sunrise project for Timor-Leste’s future economic growth is significant, and the potential benefits for the country and its regional partners are underscored by the urgency of reaching an agreement before November.
The signing of an agreement for the Greater Sunrise project by November would mark a significant milestone for Timor-Leste as it strives to secure the development of its natural gas resources. As the country looks to diversify its economy and reduce dependence on oil and gas reserves, the project’s successful development could provide a much-needed boost. With regional interests and geopolitical considerations at play, the decision on gas refining locations and resource transportation will have far-reaching implications for Timor-Leste’s economic future. The coming weeks will be crucial as negotiations progress towards a final agreement.
