BUSINESS NIGERIA

NIGERIA BUSINESS MAGAZINE

Port Harcourt Refinery Restarts Fuel Production After Six-Year Hiatus

After years of delay and seven missed deadlines, the Port Harcourt Refinery has resumed operations, releasing one million litres of refined petroleum products on Tuesday. The Nigerian National Petroleum Company Limited (NNPCL) unveiled the revamped facility, which now boasts a refining capacity of 70% of its installed 60,000-barrel-per-day output.

NNPCL’s Group Chief Executive Officer, Mele Kyari, announced the milestone, noting that the larger 150,000-barrel-per-day refinery within the Eleme complex, as well as the Warri and Kaduna refineries, remain under rehabilitation. Citing directives from President Bola Tinubu, Kyari refrained from providing a timeline for the completion of these projects, citing past delays.

“We will deliver all other projects, but as directed by the President, we won’t commit to a timeline,” Kyari said, crediting Tinubu’s administration for its support.

The rehabilitation comes at a critical moment for Nigeria, which has faced years of dependence on imported fuel despite being one of Africa’s largest crude oil producers. Officials stated that the refinery would contribute 200 truckloads of petrol daily, easing fuel scarcity and laying the groundwork for improved competition in the downstream sector.

Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), expressed optimism that with the combined output of the Dangote and Port Harcourt refineries, fuel availability across Nigeria would improve significantly. “This development paves the way for Nigeria to transition from being a net importer of petroleum products to a net exporter,” he said, adding that increased supply would promote price stability.

Ahmed emphasised that the reopening would foster competition, provide consumers with more choices, and ultimately drive down prices. “This marks a turning point in Nigeria’s petroleum landscape,” he declared.

Despite the celebratory tone, scepticism has clouded the refinery’s reopening. Industry sources have questioned whether the facility is currently producing petrol, citing the absence of a catalytic platform unit required for petrol production. Insiders claim the plant is blending refined products rather than producing them outright.

NNPCL, however, refuted these allegations, stating that the refinery is blending Straight-Run Gasoline (Naphtha) into Premium Motor Spirit (petrol) to meet specifications. The corporation described blending as standard practice in global refineries, adding that plans are underway to increase operational capacity to 90%.

Petroleum marketers welcomed the development, with Joseph Obele, spokesperson for the Petroleum Products Retail Outlet Owners Association of Nigeria, lauding the reopening as a “dream come true.” Obele and other stakeholders expressed confidence in the refinery’s ability to boost economic activity and create jobs in the host community.

Independent marketers, too, embraced the competition ushered in by the revamped facility, which they see as an opportunity to diversify supply sources. “We now have two major options: theDangote refinery and Port Harcourt,” said Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria.

In a statement, President Tinubu hailed the refinery’s revival as a cornerstone of his administration’s push for energy security. He emphasised the importance of ending Nigeria’s reliance on imported refined products and urged NNPCL to accelerate the completion of the Warri and Kaduna refineries.

“Our goal is to establish Nigeria as a major energy hub, capable of meeting domestic demand and boosting export capacity,” Tinubu said. He also praised former President Muhammadu Buhari for initiating the refinery’s rehabilitation and commended the African Export-Import Bank for financing the project.

As Nigeria takes this step toward energy independence, the stakes are high for the refinery to sustain operations and meet the lofty expectations of revitalising the country’s petroleum sector. Whether this milestone will signal a true turning point or remain a fleeting achievement will depend on the refinery’s ability to deliver on its promises.

Leave a Reply

Your email address will not be published. Required fields are marked *