The federal Parliament has passed a Bill that clears the way for development of the Greater Sunrise gas field in the Timor Sea.

East Timor's Parliament ratified an agreement on revenue sharing between Australia and Timor last week.

Federal Resources Minister Ian Macfarlane says the Bill will build on a mutually beneficial friendship with East Timor and the success of the Bayu-Undan field.

The Northern Territory Government says it would like to see gas from the project processed in the Territory.

The Territory's Chief Minister says East Timor's Parliament will commission a study to see if gas processing is viable in Timor.

Clare Martin says it would be good to see expanded production at Darwin's Wickham Point, but she understands Timor's desires.

"I fought hard for a 50-50 split in the revenue from the jointly owned, or the jointly shared part of the Sunrise field and certainly recognise the aspirations of Timor, but importantly for the Territory, we would like to see the gas come on shore here," she said.