After multiple delays, the Port Harcourt Refinery has finally begun fuel production, marking a significant milestone in Nigeria’s efforts to revive its refining capacity. The Nigerian National Petroleum Company Limited (NNPC) confirmed this development on Tuesday.
Speaking to journalists, NNPC spokesperson Olufemi Soneye announced that the loading of fuel trucks had officially commenced. He stated, “The Port Harcourt Refinery has begun production, and truck loading operations have started today, Tuesday.”
In a separate update on its X (formerly Twitter) account, the NNPC reiterated the announcement, stating, “NNPC Ltd delivers Port Harcourt Refinery as the plant begins the truck-out of products today, Tuesday, 26th November 2024, at 1:45 PM. Watch the commissioning and trucking-out event LIVE.”
The refinery’s operations will initially focus on a daily capacity of 60,000 barrels, producing Premium Motor Spirit (PMS), diesel, and other refined petroleum products for the Nigerian market. This development positions the Port Harcourt Refinery as the second active petrol-producing refinery in the country, following the Dangote Refinery, which commenced production of PMS in September.
The Port Harcourt Refinery is one of three refineries owned by the Federal Government and operated by the NNPC. Located in the Niger Delta, it was originally commissioned in 1965 but had become non-operational for several years due to neglect and disrepair. In March 2021, the Nigerian government secured a $1.5 billion loan to undertake the refinery’s modernization and rehabilitation, aiming to restore it to full functionality.
The project, however, faced several challenges and missed deadlines. Promises by the Federal Ministry of Petroleum Resources and the NNPC regarding the refinery’s reopening were unfulfilled on seven occasions before this milestone was achieved. The initial target for completion was set for September 2024, but this deadline also passed without progress, leading to further disappointment.
Last week, the NNPC provided clarity on the reasons for the delays. According to Soneye, the rehabilitation of the Port Harcourt Refinery involved working on a brownfield project, which presented various unforeseen risks and challenges.
“You may recall that the mechanical completion of the Port Harcourt Refinery’s revamp was successfully achieved several months ago, marking a major milestone for the project,” Soneye explained. “Following this, we commenced the commissioning of critical equipment and process units. However, as is common with brownfield projects of this scale and complexity, we encountered unforeseen risks and challenges.”
Despite these setbacks, the NNPC stated that the issues were eventually resolved, enabling commissioning activities to resume and the refinery to commence operations.
This milestone has rekindled hopes among Nigerians that domestic refining could lead to a reduction in fuel prices, as it would lessen the country’s dependence on imported refined petroleum products.
