The Port Harcourt Refining Company Limited is now receiving crude oil supplies from the Nigerian National Petroleum Company Limited, according to NNPCL executives.
The factory would deliver refined Premium Motor Spirit, often called petrol, and Automotive Gas Oil, also called diesel, along with other products to 12 states, including Abia, Rivers, Delta, and Akwa Ibom, among others, according to oil marketers who confirmed the news.
The NNPCL stated that the ongoing test-running of the plant would be completed shortly, adding that commercial production of refined products would also begin shortly.
This came as experts and downstream operators stated that though the cost of refined products would reduce once the Port Harcourt and Dangote refineries start pumping out products, it would not lead to a massive price crash.
On December 21, 2023, the Federal Government announced the mechanical completion of rehabilitation work on the Area-5 Plant of the Port Harcourt Refining Company in Rivers State.
It said the first phase of the plant had been completed, as the facility would start refining 60,000 barrels of crude oil daily after the Christmas break.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, had stated that the first phase of the PHRC was completed on December 20, 2023, adding that refined products’ production would commence after the Yuletide.
“This is to announce to Nigerians that in fulfilment of our pledge to complete phase one of the Port Harcourt refinery by the end of 2023, and the subsequent streaming of phase two in 2024, we happily announce the mechanical completion of flare start-up on December 20, 2023.
“This heralds the commencement of the production of petroleum products after the Christmas break. We want to thank Nigerians for their patience and trust in the NNPC to deliver on our promise and mandate in the rehabilitation of our refineries,” the minister stated.
NNPCL supplies crude
When contacted on Sunday to state whether the plant had started producing refined products as projected by the minister, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, said crude oil was being supplied to the facility.
He said the refinery was being test-run, as this was in line with international best practice, and assured Nigerians that the plant would commence commercial production of refined products production shortly
“We’ve successfully completed the mechanical phase of the PH refinery Area 5 plant, installing all vital components. Licensor inspection has been done and catalysts delivered.
“Now, industry-based testing remains, focusing on leaks, air, line blowing, flushing, drying, steam out, calibration, plant inerting, and then hydrocarbon (crude oil) introduction.
“While we share the optimism, adherence to global best practices is crucial. Testing will conclude shortly, ensuring the refinery’s efficient operation. Production should commence shortly,” he stated.
Supply to 12 states
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, who led other marketers to the Port Harcourt refinery, confirmed on Sunday that the plant had started receiving crude oil.
He said testing was ongoing at the facility and noted that the 60,000bpd crude oil production was enough to serve about 12 states in Nigeria.
“I can confirm that they (the refinery) are now receiving crude because I have been in Port Harcourt and was at the refinery with some of our members. The testing is going on, and it is going to take some time because they would have to ascertain the parts of the refinery that are working and those that are not working yet.
“And all that must be stable, which is why the management of the refinery must be supported to ensure that they deliver and start the production of products for commercial purposes. However, I can confirm to you that what they (NNPCL) told you is correct,” Gillis-Harry stated.
Asked whether the 60,000 barrels per day that would be refined from the plant would be enough to meet the demands in some states, the PETROAN boss stated that about 12 states could get their supply from the facility.
He said, “Nigerians should be cheerful about the 60,000 barrels per day of crude that is to be refined by the plant. Even if it is producing at 50 per cent capacity, it will produce what will consistently augment and make sure petroleum products are available for domestic consumption.
“And this will help curb the depletion of our foreign exchange. The volume of petrol and other products that will come out of 60,000bpd refined crude is not small, it is a lot. In fact, it can serve about 12 states. It is a considerable volume that can serve about 12 states.
“It can serve Rivers, Bayelsa, Abia, Imo, Delta, Edo, Cross River, Akwa Ibom, and even beyond, and this is a conservative estimate. Also don’t forget that it is going to be produced daily. So if every day we are loading about 50 tankers of 33,000 litres each, that is going to serve a lot of purposes.”
The NNPCL, which is the manager of the refinery, had also revealed that the second phase of the facility would be completed in the fourth quarter of 2024 and would lead to the refining of 150,000bpd crude by the facility.
The Group Chief Executive Officer, NNPCL, Mele Kyari, explained that as of December 15, 2023, about 84.4 per cent of Area-5 Plant, a key component of the Port Harcourt refinery, and 77.4 per cent of the entire rehabilitation project had been completed.
“In our quest to ensure that this refinery is re-streamed to continue to deliver value to Nigerians, we made a promise that we will reach a mechanical completion of phase one of the rehabilitation project by the end of December and get the other plants running in 2024. Today, we have kept those commitments,” Kyari stated during the announcement of the mechanical completion of the plant.
