Timor-Leste's national oil company, Timor GAP, has awarded a contract to Wood Group to study the feasibility of LNG imports and construction of an LNG import terminal, it said on March 31.  

The southeast Asian nation wants to convert its fuel oil-based power plants into gas-based ones. The country has three power plants at Hera, Betano and Oe-Cusse. They are equipped with Wartsila generators currently configured to fire on light fuel oil. 

Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. ngc.co.tt

“The Wartsila generators have the capability for conversion to fire on natural gas,” the company said. “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.” 

According to the contract, Wood Group would identify the potential market supply for the import of LNG and study the potential site locations for the import terminal. It will develop a concept design for the import terminal and associated regasification facilities, perform geotechnical and geophysical surveys to support the development of the terminal design, study the mode of distribution of natural gas to the three power plants, and develop the capital and operating cost estimates for the terminal and natural gas distribution. 

Meanwhile, Timor GAP is in discussion with the US embassy for potential support through its Transaction Advisory Fund programme for funding and delivery of the environmental impact assessment and surveys for an LNG import terminal, it said.