Woodside Energy Charts Path Toward Southeast Asian LNG Expansion in Historic Timor-Leste Partnership

Australian energy major Woodside Energy has inked a landmark cooperation agreement with Timor-Leste’s Ministry of Petroleum and Mineral Resources, marking a significant step toward developing the Greater Sunrise gas fields through a Timor-based LNG facility. This strategic alliance positions the company to unlock substantial gas reserves in a region increasingly vital to Asia-Pacific energy security.

Commercial and Technical Framework Takes Shape

Under the partnership framework, both parties will pursue parallel commercial and technical maturation activities designed to transform the Greater Sunrise concept into operational reality. The collaboration encompasses the development of a greenfield LNG project with targeted production capacity of 5 million tonnes per annum, alongside integrated domestic gas infrastructure and a dedicated helium extraction plant. These components collectively represent a comprehensive energy development strategy for the region.

Concurrently, the Sunrise Joint Venture is engaged in comprehensive negotiations with the governments of Timor-Leste and Australia regarding fiscal terms, regulatory requirements, and legal frameworks governing upstream operations. This dual-track approach allows technical advancement to proceed while commercial foundations are solidified.

Accelerated Timeline Targets Early 2030s Commissioning

The cooperation agreement establishes an ambitious but achievable timeline, targeting initial LNG production between 2032 and 2035. This milestone reflects confidence in the project’s viability and the coordinating governments’ commitment to expediting development. The schedule positions Woodside to address growing energy demand across Southeast Asian markets, particularly from nations seeking to diversify import sources.

The Timor-based LNG concept gains strategic relevance given the region’s geographic advantages and established infrastructure ecosystem supporting energy exports to SG and broader Indo-Pacific markets.

Market Response and Financial Positioning

On the Australian Securities Exchange, Woodside Energy shares reflected positive sentiment surrounding the announcement, closing marginally higher at AUD 25.11, up 0.12% on the trading session. The modest uptick underscores investor confidence in the company’s portfolio expansion and long-term project development capabilities.

This partnership represents a transformative opportunity for Woodside Energy to establish a substantial upstream and LNG presence in Timor-Leste, positioning the company to capitalize on accelerating regional energy demand over the coming decade.