East Timor, which is considering converting its oil-fired power plants to gas in an effort to slash energy supply costs, estimates it will need about 0.37 million tonnes per year (t/y) of imported liquefied natural gas (LNG).
Last week, the Southeast Asian nation’s national oil company (NOC) TimorGAP announced it had launched a feasibility study exploring the development of a small-scale LNG import terminal.
The feasibility study will examine LNG sourcing options within the region, including Indonesia and Singapore, as well as Australia, TimorGAP said in a statement published by local media today.
The study will examine various concepts for importing LNG, including leasing a small-scale floating storage and regasification unit (FSRU) or delivery of LNG ISO tanks via barge.
“The objective of the study is to select a concept which entails minimal infrastructure and low capital investment offering a viable solution to reduce net cost of power plant fuel
supply,” said the NOC.
Moreover, an important objective of the study is to establish a design concept that will enable the facility to be re-purposed for the supply of natural gas, in the form of LNG or compressed natural gas (CNG), from the future development of the Greater Sunrise field or other upstream development in East Timor, added TimorGAP.
“It is unlikely that installation of an onshore pipeline distribution system will be viable and therefore LNG or CNG will need to be distributed to the country’s three power plants by
barge,” said TimorGAP.
The country, also known as Timor Leste, is considering converting its three oil-fired power plants that run on Wartsila generators to natural gas. Currently, East Timor imports expensive supplies of diesel fuel for the power plants, which has led to high electricity costs for consumers. The government spends $100 million per year to buy diesel for power generation, according to TimorGAP.
The installed aggregate capacity of 272 MW from the three power plants would need a supply of 53 million cubic feet of gas per day. This gas flowrate is equivalent to an LNG supply of 0.37 million t/y of LNG, according to estimates from TimorGAP.
Analysts believe importing LNG could half fuel supply costs versus diesel fuel.
READ MORE OF ENERGY VOICE’S EAST TIMOR COVERAGE:
Twist of irony as East Timor eyes LNG imports
East Timor rethinks flawed Greater Sunrise LNG plan
Santos breathes new life into East Timor’s Bayu-Undan
Sunset at East Timor’s Greater Sunrise LNG after Woodside write-down
