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Proposed LNG Plant for Sunrise gas in Beaçu

20 March 2015. Updated 2 July 2015.

Click on any graphic on this page to see it larger.

A key element of Timor-Leste's 2011-2030 Strategic Development Plan is the Tasi Mane Project (TMP), a corridor of petroleum infrastructure along the southwest coast of this country (schematic design at right) which includes:

This page discusses the third component of the project -- the natural gas pipeline and liquefaction plant being planned for Beaçu -- which is being managed by Timor-Leste's state-owned oil company TimorGAP. It includes the following sections:

Greater Sunrise and Maritime Boundaries

The Beaçu LNG plant is designed to process natural gas from the Greater Sunrise project in maritime territory disputed between Timor-Leste and Australia. Timor-Leste wants the natural gas to be piped to Timor-Leste, liquefied, and exported, although Woodside and the other partners in the Sunrise Joint Venture prefer to liquefy and export the gas from a floating platform above the field. La'o Hamutuk wrote a book Sunrise LNG in Timor-Leste: Dreams, Realities and Challenges in 2008 and a briefing paper on Maritime Boundaries in 2009. Our website is updated regularly on the Greater Sunrise oil and gas field and on the maritime boundary dispute with Australia. This web page does not repeat that information.

Environmental Impact Assessment (EIA)

Click here for more information about the tender process for the Tasi Mane Strategic EIA and the environmental documents and license for the Suai Supply Base.

In 2011, Timor-Leste awarded a $1.1 million contract to the Australian engineering company WorleyParsons to prepare Environmental Impacts Assessments for the first three components of the Tasi Mane projects. They then prepared EIAs for the Suai Supply Base and a "Strategic EIA" for Betano and Beaçu which TimorGAP submitted to the State Secretariat for Environment (SEMA). The Strategic EIA has general information about environmental implications of these projects, but it is not sufficient for an environmental license, which requires project-specific EIAs and Environmental Management Plans (EMP).

'Final' Strategic Environmental Impact Assessment for Tasi Mane project (June 2012): Executive Summary (4MB).

  1. Part A (18 MB, including executive summary, introduction, regulatory and environmental context, project descriptions, Betano EIA and management)

  2. Part B (14 MB, including Beaçu EIA and management, environmental management framework, conclusions and recommendations, references)

  3. Part C (6 MB, including 12 Appendices)

  4. Attachments (11 MB, including Terrestrial Flora and Fauna Technical Report, Marine Environment Technical Report)

Marine survey and front-end design

Originally, the Beaçu LNG terminal was expected to have a breakwater and offshore harbor, as shown in the drawing at left. However, the review by H.R. Wallingford determined that the sea was too rough, so the design was changed to the plan at right, and residents of Beaçu village will be displaced to make space for an in-shore harbor.

TimorGAP's website has some additional pictures, as does their 2014 Annual Report.

 

Where the money is going

State Budget information from the Ministry of Finance shows some of what has been budgeted and spent for the Beaçu parts of the Tasi Mane project. Unfortunately, the Budget Transparency Portal is not working while this page is being written, and we will add this information when it comes back up.

In addition to the data in budget documents, TimorGAP has published Annual Reports (2011-12, 2013 and 2014) which include information on the Beaçu projects. They are also discussed in TimorGAP's submissions to Parliament on proposed state budgets, presented on 11 November 2013 and 7 November 2014. In August 2014, La'o Hamutuk wrote to the Chamber of Auditors suggesting that they audit TimorGAP's finances.

More than $20 million in contracts have been awarded

La'o Hamutuk obtained this information on awarded contracts from the Procurement Portal and other sources; it is probably not complete. So far, nearly all the money spent on this project has gone to foreign companies, providing hardly any local employment or spinoffs. The Procurement Portal has been "temporarily down for maintenance" since February, so many links in the table below may not work.

Award date

Contractor

Procurement description and document

Awarded amount

19-Nov-2010

TOKE OIL & GAS SA

Contract No.: STA-SERN-001/2010 Provision of Metocean and Ground Investigation Survey nearshore and onshore Timor-Leste

$6,639,517

21-May-2010

TOKE OIL & GAS SA

Offshore Ground Investigation and Bathymetric Survey Services in Three (3) Inshore Areas at Suai and Beaçu

$1,299,141

5-Jan-2011HR WALLINGFORD LIMITEDTimor-Leste LNG, Supervision and Field work support for Marine Site Investigation & Pre-FEED and FEED (Front End Engineering Design) for Marine Facility in Beaçu, Viqueque (Contract no: RDTL-11002209) $1,200,000
13-Feb-2012PT WOOD GROUP INDONESIAFront End Engineering and Design (FEED) and Detailed Marine Survey (DMS) for Offshore Pipeline From Greater Sunrise to Timor Leste (Contract No. SERN-KOGAS-001/2012 (downloaded)

$5,394,531

25-May-2012TIMOR GAP. E.P Agreement for Provision of Services by Timor GAP - Timor GAS Petroleo E. P for LNG Marine Facility front end Engineering Design (FEED), in Beaçu, Viqueque District (Contract RDTL - 12005429) (downloaded)

$3,500,000

24-Oct-2012PT WOOD GROUP INDONESIAFront End and Design (FEED) and Detailed Marine Survey (DMS) for Offshore Pipeline From Greater Sunrise to Timor Leste (Amendment No. 1 for Contract No. SERN-KOGAS-001/2012A) (downloaded)

$743,208

28-May-2015Foster Wheeler Energy Ltd.Consultancy Services for Pre-Front End Engineering Design (Pre-FEED) Study for LNG Plant (RFP/045/MPRM-2014) (see below)$3,800,000

TOTAL FOR SUNRISE PIPELINE AND BEAÇU LNG

 $22,576,000

The following contracts are partly for Beaçu LNG and partly for other Tasi Mane project components:

16-Dec-2010

PT. DSI MAKMUR SEJAHTERA

Spatial Design Planning for Southern Coast of Timor Leste, (Districts of Suai Manufahi and Viqueque) (No. 004/MPS/MED/SDPSC/XI/2010)

$900,000

16-Dec-2010

PT. BEXCELLENT MITRA CEMERLANG

Spatial design planning for southern coast of Timor-Leste (Districts of Suai, Manufahi and Viqueque (No. 005 MPS/MED/SDPSC/XI/2010)

$1,181,065

17-Nov-2011WORLEY PARSONS PTE LIMITED Environmental Impact Assessment/study (EIA) Study on Tasi Mane (Consultant for Suai, Betano -Same, and Beaçu - Viqueque) (Contract No. RDTL - 12000031)
Links to reports resulting from this contract (June 2012)

$1,075,370

The following contracts for legal services relate to Timor-Leste's efforts to secure its maritime boundary with Australia, which is partly motivated by the Sunrise pipeline project
2010-2014BERNARD COLLAERYLegal work relating to maritime boundaries and CMATS

$2,987,683

2014DLA PIPER AUSTRALIALegal work relating to maritime boundaries and CMATS (MOF-DGSC-DLA PIPER-2014)

more than $305,926

GRAND TOTAL

  more than $29,000,000

Tender for Preliminary Front-End Engineering Design for the Beaçu LNG Plant

On 17 July 2014, Timor-Leste's National Procurement Commission (NPC/CNA) invited proposals from qualified consulting firms for the "Pre-Front-End Engineering Design (Pre-FEED) Study" for the LNG Plant. NPC provided a 100-page Request for Proposals document, with bidding procedures and a project description, to interested parties. A Pre-proposal conference was held on 7 August, and NPC issued clarifications on 19 August and 3 September.  After extending the original 27 August deadline to 17 September, a bid opening meeting was held on 21 October. Although nearly 20 companies had expressed interest, only two submitted proposals: WorleyParsons for $4.96 million and Foster Wheeler Energy Ltd. for $3.80 million.

Amec Foster Wheeler had a lower price and higher technical score, and, on 10 March 2015, the National Procurement Commission announced that it intends to award the contract to them. La'o Hamutuk has written a letter of protest (also Tetum) to the Commission, explaining that uncertainties around the Greater Sunrise pipeline to Beaçu, as well as the many years which will pass before this project is built, make it inadvisable to spend even more of Timor-Leste's people's money on the Beaçu LNG dream. We also blogged Stop spending good money on faint hopes for Beaçu LNG and issued a Tetum press release summarizing the letter.

On 28 May, Amec Foster Wheeler announced that the contract had been awarded to them.

Links

For more information, see these other relevant pages on La'o Hamutuk's website:

 

The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)
Institutu Timor-Leste ba Analiza no Monitor ba Dezenvolvimentu
Rua dos Martires da Patria, Bebora, Dili, Timor-Leste
P.O. Box 340, Dili, Timor-Leste
Tel: +670-3321040 or +670-77234330
email: 
info@laohamutuk.org    Web: http://www.laohamutuk.org    Blog: laohamutuk.blogspot.com