Australian Prime Minister Julia Gillard said she is amenable to discuss a disputed natural gas project in East Timor to gain support for asylum seekers.

Woodside Petroleum Ltd.'s planned Sunrise gas project can be part of the negotiations if raised by East Timor, Gillard told the Australian Broadcasting Corp.'s Lateline program last night. East Timorese Prime Minister Xanana Gusmao said today his government was open to considering Gillard's asylum centre plan, the Sydney Morning Herald reported on its website.

"I'm not promising a quick fix, I've said that this is going to take time, but I am determined to relentlessly pursue" the centre, Gillard said.

Gillard delivered this comment as Woodside, Australia's second-largest oil and gas producer, had a conflict with the government of East Timor on the planned liquefied natural gas processing facility there.

Woodside and its partners, including Royal Dutch Shell Plc., have said that a floating plant in the Timor Sea is the best commercial option and would deliver the most revenue to both Australia and East Timor. It is not in favor of piping the gas to East Timor because it estimates that would cost about $5 billion more.