Speaking on behalf of the joint venture, Woodside Petroleum Chief Executive Don Voelte said “Following an extensive and rigorous commercial and technical evaluation of the various development options available to the Sunrise joint venture, including building onshore processing plants at Darwin and in Timor-Leste, an FLNG processing facility best satisfies the key development requirements outlined by the International Unitisation Agreement (IUA).”

The facility will use Shell’s proprietary FLNG design to produce around 4.0 million tonnes of LNG per annum.

“Sunrise is a significant resource, but is remote and technically challenging, so Shell’s FLNG technology provides the best technical and commercial development option,” said Ann Pickard, Executive Vice President of Upstream International Australia.

The Timor-Leste Government has taken a different view of the processing options. Timor-Leste Secretary of State for Natural Resources Alfredo Pires was confident that developing the gas at Timor-Leste remained a viable option for the joint venture saying "We have studies which prove that it's a commercial option."

Article continues below…

"The stand is quite clear: the Timor-Leste Government does not entertain anything outside a pipeline coming to Timor-Leste,"said Mr Pires.

The Greater Sunrise fields are located in the Timor Sea and Timor-Leste and Australia have entered into treaties and agreements to develop the resources.

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

“Australia has benefited from the Bayu – Undan pipeline, it is only fair this time Timor-Leste gets the Greater Sunrise pipeline,"said Mr Pires.

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