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Wood Group Kenny: “Hera Metinaro is the best option for establishing TL’ LNG Import Terminal”

Wood Group Kenny: “Hera Metinaro is the best option for establishing TL’ LNG Import Terminal”

DILI, 03 february 2022 (TATOLI) – Australian Wood Group Kenny Sdn Bhd had concluded and presented at Timor Plaza, Dili, today, the pre-feasibility and feasibility studies for the establishment of a Liquefied Natural Gas (LNG) Import Terminal to Timor GAP, the national oil company of Timor-Leste.

The Study Manager of the Would Group Kenny Sdn Bhd, Mauricio Naranjo presented: “The Hera Metinaro site was identified as the best option to develop the Timor GAP LNG Import Terminal scoring highest on both marine and onshore criteria while striking a good balance between metocean conditions, coastal accessibility, navigability, traffic, 3rd party interactions, and general safety along with the potential for future expression on both marine and onshore aspects”.

Naranjo said the Hera Metinaro site, however, was also identified to require more site conditioning and upgrade work relative to interconnecting facilities, for instance, marine offloading, jetty, pipeline, etc.

“While, Betano LNG Import Terminal is not an appealing proposition at this time due to lower power demand, remote location, lower accessibility, and more limited infrastructure. Meanwhile, the OeCusse LNG Import Terminal is not viable due to isolated location, much smaller power plant capacity, complex logistics etc,” he said

Three LNG Import Terminal concepts are recommended to be further studied in the feasibility stage, namely ssFSRU + Trestle Jetty + Onshore station, Converted FSRU + Subsea P/L + Onshore Station, and Trestle Jetty + Onshore LNG Storage and Regasification,” he said.

In his opening remark, the Minister of Petroleum and Minerals, Víctor da Conceição Soares said that annually, since the installation of the electric power plants in Hera, Betano, and OeCusse, the Government of Timor-Leste has been allocating hundreds of millions of dollars to obtain diesel fuel to run the plants, consequently, it heavily affects the annual state budget.

He said since 2020, the Ministry of Petroleum and Minerals has been committed to a specific long-term priority to guarantee national energy security which composes of the plans to establish of fuel storage facility to ensure a reliable supply of fuel, and to conduct necessary studies to begin transitioning to the usage of natural gas in the established power plants.

After the presentation of the result of the pre-feasibility and feasibility studies by the Wood Group Kenny via zoom meeting, the Managing Director of the Downstream Business Unit of Timor GAP, E.P, Francelino Boavida said that the plan for the establishment of the LNG Terminal aims to reduce Timor-Leste’s annual expenditure on the fuel import.

“Every year, Timor-Leste spends more than US$ 100 million on purchasing fuel. Therefore, the LNG Import Terminal project would help to reduce the annual expenditure on fuel import as well as to cut gas emissions to the atmosphere. LNG Import Terminal project is renewable energy which is good for the environment,” Boavida told reporters after the presentation of the feasibility study at Timor GAP’s office, at Timor-Plaza, in Dili, on thursday.

The aim of the feasibility study is to identify the potential market supply for the import of LNG to Timor-Leste, as well as potential site locations for the implementation of an LNG import terminal.

Boavida said a feasibility study is important to select an appropriate site for the installation of the LNG Terminal: “There are candidate sites, namely Betano, Oe-Cusse, and Hera Metinaro. After the presentation of the result of the feasibility study by Wood Group Kenny, we have decided to establish the LNG Import Terminal in Hera Metinaro, an area located 12 km from Dili Port.”

“Before we officially commence the project, we will have Front-End Engineering (FEE), or Front-End Engineering Detailed (FEED) study, and then we will proceed to the Final Investment Decision. This decision would be made by the government of Timor-Leste to see the cost of the project and its risks etc,” Boavida said.

However, Timor GAP and Wood Group Kenny signed an agreement on april 1, 2021, to award a contract to Wood Group Kenny, to perform a six-month feasibility study for a lump sum price of close to $721,000.

After six-month feasibility studies of the three preferred sites (Betano, OeCusse, and Hera Metinaro) for the development of the LNG Import Terminal, Wood Group Kenny Sdn Bhd concluded that the Hera Metinaro site is the best option for the establishment of the Timor-Leste’s first LNG Import Terminal.

 Journalist: Filomeno Martins

Editor: Rafy Belo

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