Timor GAP, the national oil company of Timor-Leste has kicked off a study into the potential for establishing an LNG terminal in the country.
The decision is in line with the push to convert its light fuel oil power plants, the Hera and Betano facilities installed in 2011, to run on natural gas.
The third facility, the Inur Sakato (Oe-Cusse) power plant, set up in 2015, completes the trio of main power plants covering the country’s demand for electricity.
The Inur Sakato (Oe-Cusse) power plant is equipped with Wartsila 34DF generators also configured for light fuel oil. The Wartsila generators have capability for conversion to fire on natural gas.
Conversion of the power plants to fire on natural gas would achieve significant reductions to both fuel supply cost and greenhouse gas emissions.
A reduction of annual expenditure on fuel import and improvement to environmental impact presents a compelling case to examine the investment required for conversion.
The Ministry of Public Works, through Eletricidade de Timor-Leste (EDTL), plans to implement the gas conversion of Hera and Betano power plants.
Furthermore, the resident of the Authority of RAEOA (Região Administrativa Especial de Oé-Cusse Ambeno) has conveyed his support on the conversion plan for Inur Sakato power plant.
Timor GAP has therefore commenced a study programme to examine the feasibility of the supply of natural gas to each of the power plants. The studies will be conducted by its Downstream business unit.
The aim is to identify the potential market supply for import of LNG to Timor-Leste, as well as potential site locations for implementation of an LNG import terminal.
The unit has also been tasked with developing a concept design for an LNG import terminal and associated LNG regasification facilities.
Further geotechnical and geophysical surveys will have to be performed to support the development of an LNG import terminal design.
Additionally, the study will have to look into the options for the distribution of natural gas to the three power plants. Also, the unit will have to develop the capital and operating cost estimates for the LNG import terminal and natural gas distribution.
To support the programme Timor GAP, has awarded a contract to Wood Group Kenny, to perform a six-month feasibility study for a lump sum price of close to $721,000.