Port Harcourt Refinery Commences Production After Years of Delays

 

Niger state, Nigeria – November 26, 2024

By Joshua Omoniyi 

After a series of delays, the Port Harcourt refinery has officially resumed fuel production, marking a significant milestone for Nigeria's oil industry. The announcement was made by the Nigerian National Petroleum Company Limited (NNPC) on Tuesday, confirming that truck loading of refined products would begin immediately.

NNPC spokesperson, Olufemi Soneye, stated, "Port Harcourt Refinery begins production. Truck loading starts today, Tuesday." A subsequent update on social media highlighted the significance of the moment, indicating that the refinery began the shipping of products at precisely 1:45 PM.

Initially, the refinery will operate at a capacity of 60,000 barrels per day, producing essential fuels such as Premium Motor Spirit (PMS) and diesel. This facility is now the second operational refinery in Nigeria, following the Dangote Refinery's commencement of PMS production in September.

The Port Harcourt refinery is one of three refineries owned by the Federal Government and managed by the NNPC. Situated in the oil-rich Niger Delta, it has been a central figure in Nigeria's petroleum sector since its establishment in 1965. However, the facility had fallen into disrepair in recent years, prompting the government to secure a $1.5 billion loan in March 2021 for its renovation and modernization.

Despite the optimism surrounding the refinery's reopening, it has faced numerous challenges. The NNPC had previously delayed the refinery's launch multiple times, with the latest setback occurring just two months after the September deadline. In an interview, Soneye cited "unforeseen risks and challenges" typical of brownfield projects as reasons for the delays.

Nigerians are hopeful that the resumption of local refining will lead to a reduction in fuel prices, alleviating the burden of fuel imports that have long plagued the country. The Nigeria Labour Congress (TUC) has praised the Federal Government for the refinery's take-off, while President Bola Tinubu has urged the reactivation of other state-owned refineries, including those in Warri and Kaduna.

As the Port Harcourt refinery begins its operations, many eyes will be on the impact it has on the local fuel market and the broader economic landscape in Nigeria.