After years of dormancy, the Port Harcourt Refining Company (PHRC) has lately begun operations; nevertheless, its claims of production and functionality have been viewed with suspicion. According to the Nigerian National Petroleum Company Limited (NNPCL), the old refinery produces fuel oil, diesel, and other petroleum products at 70% of its installed capacity. Local stakeholders and industry professionals, however, contend that these assertions are overstated. The refinery is not completely functioning, according to Timothy Mgbere, a spokesman of the host Alesa community, who also accused the NNPCL of simulating production during a televised ceremony by using old stock.
In contrast to the anticipated 200 trucks each day, he claims that since the facility’s reopening, only a small number of product trucks have been sent out. He also questioned the contractor’s skill and the automation of the refinery. Experts questioned NNPCL’s transparency and urged it to reveal information regarding refinery operations and crude supply. Leaders in the community demanded better project implementation and open communication. While the larger refinery complex is still undergoing repair, organisations such as PETROAN have confirmed the refinery’s partial operation and stated that it is currently producing at a reduced capacity.
This dev. is crucial towards strengthening Nig.’s refining capability.
Notwithstanding their doubts, PETROAN and other interested parties voiced cautious optimism on the refinery’s functioning, stressing the necessity of consistent output. Industry associations emphasised how crucial clear pricing and effective distribution are, as demonstrated by the Dangote Refinery’s recent operational success. In support of the recent reopening of the Port Harcourt refinery, the Nigerian National Petroleum Company Limited (NNPCL) emphasised the refinery’s vital importance in Nigeria’s efforts to achieve energy independence. NNPCL reports that the refinery is now running at 70% of its installed capacity, with aspirations to reach 90%.
1.4 million litres of Premium Motor Spirit (PMS), 1.5 million litres of Automotive Gas Oil (AGO), and additional goods including kerosene and LPG are currently produced. NNPCL also emphasised the use of cutting-edge procedures to satisfy quality requirements, guaranteeing that results are on level with refinery benchmarks worldwide. Under the direction of President Bola Tinubu and the NNPCL board, this development is described as a crucial step towards strengthening Nigeria’s refining capability and lowering dependency on fuel imports. It is hailed as a transformative move.
There are still obstacles to overcome in the refining industry.
As seen by the Dangote Refinery’s 2024 start of production of diesel and Aviation fuel, Nigeria’s attempts to improve domestic refining are reflected in the restoration of the Port Harcourt refinery. Although the Dangote facility can produce 650,000 barrels per day (bpd), the Port Harcourt refinery that has been restored has a lower initial throughput of 60,000 bpd. On the other hand, NNPCL emphasises how both refineries work in tandem to lessen Nigeria’s reliance on imported petroleum.
Their combined goal is to stabilise fuel prices and meet market demand, particularly after the elimination of Subsidies that have sharply raised fuel prices nationwide. The Port Harcourt refinery’s reopening is a significant development for Nigeria’s oil industry. It represents a change from years of significant reliance on refined imports to independence. This initiative is anticipated to increase energy security, save foreign exchange, and generate employment along the supply chain. Notwithstanding, there are still obstacles to overcome, such as guaranteeing a steady supply of crude oil, preventing operating inefficiencies, and tackling environmental issues.
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Although the government’s $1.5 billion Investment in the refinery shows its dedication to reviving the sector, players must prioritise sustainability, efficiency, and openness. NNPCL and other stakeholders must give top priority to capacity optimisation, integration with the Dangote refinery, public-private partnerships, local employment and training, monitoring, and evaluation if they want the Port Harcourt refinery to realise its full potential. These actions would establish Nigeria as a major force in the regional petroleum market in addition to optimising the refinery’s benefits.