DILI, 01 april 2021 (TATOLI)— TIMOR GAP, E.P. has awarded a contract with Wood Group Kenny Sdn Bhd, a global consulting and engineering company, to perform a six month Feasibility Study to supply for import of LNG (Liquified Natural Gas) to Timor-Leste
“The Feasibility Study for a lump sum price of USD 720,825.56,” statement from the Document access by Tatoli on Thursday.
The agreement signed by the President & CEO of TIMOR GAP Mr. Antonio de Sousa, and accompanied by Mr. Francelino Boavida, Managing Director of Downstream Business Unit and Mr.Clementino Pereira, LNG Regasification Project Manager and the Wood’s representative Mr. Jeff Pearman, General Manager and accompanied by Mr. Andrew Chan, Operations Manager Malaysia.
The contract signature ceremonies held in Kuala Lumpur Malaysia and Dili, Timor-Leste were concluded on 30th March 2021.
The study is to facilitate Timor GAP to join Timor-Leste national electricity to supply the natural gas to three main power plants at Hera, Betano and Oé-Cusse located on the north and south coasts of the island.
The Hera and Betano power plants were installed in 2011 and are equipped with Wartsila 18V46 generators currently configured to fire on light fuel oil.
The Inur Sakato (Oe-Cusse) power plant was installed in 2015 and 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,”said Timor Gap in a Statement.
The Ministry of Public Works, through EDTL, E.P. (Eletricidade de Timor-Leste), is committed to implement the gas conversion of Hera and Betano power plants.
Furthermore, the President of the Authority of RAEOA (Região Administrativa Especial de Oé-Cusse Ambeno), Arsénio Paixão Bano also convey his supports on the conversion plan for Inur Sakato Power plant.
TIMOR GAP E.P., the National Oil Company of Timor-Leste, has therefore commenced a study programme to examine feasibility for supply of natural gas to each of the existing power plants.
The studies will be conducted by its Downstream Business Unit with the objectives to Identify the potential market supply for import of LNG (Liquified Natural Gas) to Timor-Leste, identify potential site locations for implementation of an LNG import terminal and conduct a site selection assessment.
Likewise, to Develop a concept design for an LNG import terminal and associated LNG regasification facilities; Perform geotechnical and geophysical surveys to support development of an LNG Import Terminal design;
It is also to conduct the Study of the mode of distribution of natural gas to the 3 power plants; develop the capital and operating cost estimates for the LNG Import Terminal and natural gas distribution and develop the implantation plan for facilities.
To support the programme TIMOR GAP, E.P. has awarded a contract with Wood Group Kenny Sdn Bhd, a global consulting and engineering company to perform a Feasibility Study.
TIMOR GAP, E.P has discussed with the US Embassy for potential support through its TAF (Transaction Advisory Fund) programme for funding and delivery of the environmental impact assessment and surveys for an LNG Import Terminal.
Industrial development will depend upon a secure and competitively priced energy source and therefore implementation of an LNG Import Terminal would be an important national infrastructure project.
Journalist: Florêncio Miranda Ximenes
Editor: Julia Chatarina