Timor-Leste President Jose Ramos-Horta announced plans to strike a deal with Australia on the Greater Sunrise project by November, a major fossil fuel project crucial to Timor-Leste’s economic future. The project aims to tap into trillions of cubic feet of natural gas but has been stalled due to disputes over maritime boundaries and where the gas should be refined. Ramos-Horta stated that an agreement would be signed within weeks and likely by November.
Timor-Leste, Asia’s youngest nation, gained independence in 2002 and is heavily reliant on its oil and gas reserves to support its nascent economy. Ramos-Horta highlighted the importance of the Greater Sunrise project for countries like China, Japan, and South Korea. However, the decision on whether resources will be piped to Timor-Leste or Australia is still pending, pending government review following an independent study.
Woodside Energy, the project operator, acknowledged the complexity of the Sunrise project and the need for further work during an investor call. Australian officials had expressed concerns that China might fund the project, heightening worries over Beijing’s expanding regional influence. Timor-Leste, located close to Australia’s northern coast, had to navigate these concerns as it sought to develop the project.
Ramos-Horta reflected on the strained relationship between Timor-Leste and Australia following a spying scandal in 2018. Despite the incident, he stated that relations had been reset and characterized Australia as a true and great friend. He acknowledged that while the spying was unkind, it was also common for countries to engage in such activities. The recent progress in bilateral relations has paved the way for cooperation on important projects like Greater Sunrise.
The Greater Sunrise project holds significant implications for the economic future of Timor-Leste, as it seeks to diversify its resources and reduce its reliance on oil and gas reserves. The impending agreement with Australia is a key step towards unlocking the potential of the vast gas field and ensuring sustainable economic growth for the nation. The decision on the transportation of resources to either Timor-Leste or Australia will have important implications for the future development of the project.
As discussions progress towards finalizing the agreement, both countries will need to address the remaining challenges and complexities associated with the Greater Sunrise project. The involvement of key stakeholders, including government officials, project operators, and investors, will be crucial in navigating these challenges and ensuring the successful implementation of the project. The signing of the agreement by November would mark a significant milestone in the development of the Greater Sunrise project and pave the way for increased collaboration between Timor-Leste and Australia in the energy sector.
