Woodside and its joint venture partners announced the selection of a Shell-designed floating LNG (FLNG) facility as the preferred processing option for the Greater Sunrise Gas Fields Development earlier in the week. The company stated that the FLNG processing facility would generate significant long-term petroleum revenue, and that it would ensure “social investment” in Timor-Leste.

Timorese Government representatives have previously said that their preferred option for the gas field development is for gas to be piped to a new onshore LNG plant in Timor-Leste.

Timor-Leste Secretary of State for Natural Resources Alfredo Pires said "The stand is quite clear: the Timor-Leste Government does not entertain anything outside a pipeline coming to Timor-Leste."

The Timor-Leste Government is taking a hard line on the issue, saying that if it pipeline doesn’t come to Timor the project may not go ahead.

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"If the pipeline does not come to Timor-Leste, we will leave it for the next generation," he said.

Mr Pires said that "Timor-Leste and Australia have entered into treaties and agreements to develop the resources in the Timor Sea for the benefits of the two peoples. Australia has benefited from the Bayu – Undan pipeline, it is only fair this time Timor-Leste gets the Greater Sunrise pipeline."

As part of the Bayu – Undan Gas Field development ConocoPhillips has built a 502 km subsea pipeline which transports lean gas from the field for processing at an LNG plant in Darwin, Australia.

Woodside and its partners have chosen not to pipe the gas184 km to Timor Lests because the pipeline would have to cross a 3.3 km deep trench, posing high technical and seismic risk.