The consortium developing the Mozambique LNG project plans to establish a facility in Palma to produce around 5,000 tonnes of B100 coconut biodiesel annually, as part of efforts to develop a local low carbon fuel supply chain and support agriculture and employment in Cabo Delgado, Club of Mozambique reported.
According to a tender notice accessed by Lusa, TotalEnergies EP Mozambique Area 1 (TEPMA1), which is responsible for the Mozambique LNG project, has invited companies, investors and consortia to express interest in financing, designing, building, owning and operating the integrated biodiesel facility.
The project will follow a “Finance-Build-Own-Operate” model and is expected to include facilities for coconut oil extraction and refining, raw material collection centres and a network of local aggregators.
Mozambique LNG is planned as the main buyer of the biodiesel under a long term offtake agreement. The arrangement is intended to support the commercial viability of the plant while strengthening the local coconut value chain.
TEPMA1 said the facility would use coconuts purchased from small scale farmers in the Palma area under fair and certified conditions. The initiative is part of a wider agricultural development programme in the region.
The programme includes nurseries, technical assistance and support for more than 3,000 farmers, along with the planting of over 440,000 coconut seedlings. The company said the measures are aimed at increasing community incomes while creating a sustainable supply of raw material for biodiesel production.
The planned fuel would be used in Mozambique LNG operations, while the project is also expected to create jobs and generate economic activity through the processing and marketing of coconut based products.
The Mozambique LNG project, located in Area 1 of the Rovuma Basin, resumed in January after being suspended for nearly four years because of insecurity linked to armed attacks in Cabo Delgado.
TotalEnergies said the project is currently almost 50% complete and employs between 7,000 and 8,000 workers at the Afungi site.
TotalEnergies chief executive Patrick Pouyanné said while presenting the company’s second quarter 2026 results that work on the project was progressing towards the planned start of LNG production in 2029.
The Mozambique LNG project, valued at around US$20 billion (€17.4 billion), is expected to produce up to 13 million tonnes of LNG annually once operational.
Mozambique has three major projects approved to develop its Rovuma Basin gas reserves. Eni’s Coral Sul floating LNG project began production in 2022, while the Coral Norte project, approved in 2025, is expected to double the concession’s liquefaction capacity from 2028. ExxonMobil’s Rovuma LNG project in Area 4 is expected to have an annual production capacity of 18 million tonnes after 2030.
