The project has been hindered for decades by ongoing disagreements between Timor-Leste and Australia, including over the destination of a pipeline. Credit: hyotographics/Shutterstock.

Timor-Leste has engaged in discussions with Chinese companies including state-owned Sinopec regarding the development of the long-stalled Greater Sunrise gas field, reported Reuters, citing President Jose Ramos-Horta.   

The Greater Sunrise gas project is crucial for the economy of Timor-Leste, with estimated revenues of $65bn in 2018.  

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However, its progress has been hindered for decades due to ongoing disagreements with Australia over the future of the shared field. 

The main point of contention has been the pipeline’s destination. 

The options include a new liquefied natural gas (LNG) plant in Timor-Leste or an existing LNG hub in Darwin, Australia.  

This disagreement comes after the resolution of a bitter maritime boundary dispute between Timor-Leste and Australia in 2018.  

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Ramos-Horta has indicated that Timor-Leste might seek new partners such as China to move forward if an agreement is not reached. 

In his statement to Reuters, Ramos-Horta confirmed that discussions had taken place with various Chinese entities, both private and state-owned, and that some representatives had visited as part of a Chinese business delegation.  

When questioned about Sinopec’s involvement, he affirmed: “Sinopec has been in touch.”  

However, Sinopec, also known as China Petroleum & Chemical Corp, did not provide comment on these discussions. 

During a speech in Canberra, Ramos-Horta expressed Timor-Leste’s openness to partnership, stating: “We look for partners. If Australia does not feel like doing it, that is totally understandable.  

“Then either we talk with the Chinese or the Kuwaitis.”  

The bilateral ties between Timor-Leste and China were strengthened last year when Prime Minister Xanana Gusmao met with President Xi Jinping in Beijing. 

The urgency of developing the Greater Sunrise field has intensified following the depletion of the Bayu Undan oil and gas field, which ceased gas exports last year.  

In April, Wood Australia, part of the UK’s Wood, was commissioned to conduct a concept study for the Greater Sunrise gas and condensate fields.  

Woodside Energy is the designated operator of the project, with stakeholders including Timor Gap, holding a 56.56% stake, Woodside with 33.44%, and Osaka Gas Australia owning the remaining 10%.