East Timor Opposes Floating Gas Plant

JAKARTA, Indonesia (AP) — East Timor has rejected a proposal for a floating liquefied natural gas platform in a disputed Timor Sea gas field as a waste of time and money.

Australian energy firm Woodside Petroleum Ltd., which leads a consortium developing the massive Greater Sunrise gas field, announced Thursday that its preferred option was to load tankers at sea from a world-first floating plant.

But the government of East Timor, also known by its Portuguese name Timor-Leste, said the plan was not in the best interests of the country and reiterated that it wants a pipeline to its shores. Australia has also said it would like a pipeline to its northern city of Darwin.

"The nation is firmly committed to building an onshore petroleum industry, inclusive of a pipeline to Timor-Leste from the Greater Sunrise field," Secretary of State Agio Pereira said in a statement. "Timor-Leste will not approve any development of Greater Sunrise that does not include a pipeline to Timor-Leste."

Pereira said the consortium was fully aware of East Timor's position and that its alternate plan reflected "an unacceptable level of arrogance."

"This approach has significantly compromised future relations with the government of Timor-Leste," the statement said.

The gas field — in a disputed area of sea between Australia and East Timor — is estimated to hold 240 million barrels of light oil and 5.4 trillion cubic feet (154 billion cubic meters) of natural gas worth tens of billions of dollars.

East Timor sees the resources as key to lifting its 1.1 million people out of poverty, by stimulating the local economy and creating jobs. The nation has no major industry and unemployment is more than 30 percent.

Woodside chief executive Don Voelte said at a meeting in Perth on Friday that he would lead a delegation to East Timor and Darwin next week to discuss the consortium's ideas.