Matt Chambers-The Australian-June 24,2010
EAST Timor President Jose Ramos-Horta says developing the Sunrise gasfields through a liquefied natural gas plant would cost $13 billion.
A figure that is well below a $19bn estimate provided by the Woodside-led consortium developing the project.
Mr Ramos-Horta's figure would bring the cost in line with the Sunrise partners' stated preference of developing the fields through a floating LNG plant, which Woodside chief Don Voelte has said would be $US5bn ($5.8bn) cheaper than piping the gas to East Timor and building a plant there.
Speaking in Canberra yesterday, Mr Ramos-Horta said discussions with regional petroleum experts, including from Indonesia, had determined that an East Timor plant development would cost $13bn.
Woodside and its partners, Shell and ConocoPhillips, put the cost for the Timor plant and pipeline at $US17bn and a floating LNG plant at about $US12bn.
"I'm not dismissing the consortium's claims, but I find it absolutely exaggerated," Mr Ramos-Horta said, adding that the East Timorese government was "open-minded" about the location of the LNG plant and wanted to discuss all options.
"If the pipeline is far too expensive to bring to Timor Leste in reality . . . then we have to think twice," he said.
Mr Ramos-Horta urged Kevin Rudd to try to influence the partners to build in East Timor.
The Prime Minister said it was a matter for the small nation and the companies to sort out.
Woodside and its partners believe they have done everything needed to satisfy the terms of international treaties dictating how the Timor Sea fields are to be developed.
According to treaties between East Timor and Australia, the gas is to be shared 50-50 between the two nations, even though nearly 80 per cent of it belonged to Australia under previous agreements.
Separately yesterday, Woodside said continued strikes at its $13bn Pluto plant at Karratha could lead to delays and cost overruns.
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