Port-Harcourt refinery expected to begin operations by the end of July

After being delayed multiple times, the Port-Harcourt refinery with a capacity of 210,000 barrels per day is now expected to start operations by the end of July.

The National Public Relations Officer of the Independent Marketers Association of Nigeria, Chief Ukadike Chinedu, revealed this new timeline on Monday.

He emphasized that this milestone will boost economic growth, lower fuel prices, and guarantee sufficient petroleum product availability. In December last year, Minister of State for Petroleum Resources Heineken Lokpobiri had announced the completion of mechanical work and the beginning of flaring at Port Harcourt’s largest crude refinery.

The refinery consists of two units: the old plant can refine 60,000 barrels per day, while the new plant has a capacity of 150,000 BPD.

In March 2019, the refinery was shut down for initial repair work after the government enlisted technical advisers from Italy’s Maire Tecnimont to oversee the complex. Eni, a major oil company, was appointed as a technical adviser.

On March 15, 2024, Mele Kyari, the Group Chief Executive Officer of NNPC Limited, announced that operations at the Port Harcourt refinery would resume in approximately two weeks.

The head of NNPC made the announcement at a press conference following his appearance before the Senate’s special committee investigating refinery maintenance projects.

He confirmed that mechanical work on the refinery was completed in December, with crude oil now in stock. Regulatory tests are currently underway, a necessary step before starting operations, and he assured that the Port Harcourt refinery would be operational within two weeks.

Despite this pledge, the refinery had not yet begun operations two months later. In an interview on Monday, an IPMAN representative described the work as a comprehensive overhaul rather than just rehabilitation and expressed commitment to meeting the July deadline.

Upon our visit, the MD assured us that the refinery was on the brink of completion and would commence production by the conclusion of July.

The transformation has been remarkable, with all armored cables replaced with new ones and a complete overhaul making it akin to a new facility. The maintenance efforts are extensive, with work ongoing round-the-clock.

Every member of the team is fully committed to ensuring that the target is met for the refinery’s readiness by the end of July.

Despite previous delays and unfulfilled government promises regarding project initiation, Ukadike acknowledged these setbacks without any explanation provided for missing the April deadline.

There are no obstacles to overcome; the refinery is nearly complete, with just 1% left to go. What we’re looking for is competition. I am confident that having two refineries will lead to a decrease in petrol prices.

The arrival of Dangote and the imminent completion of the Port Harcourt refinery are positive developments. Competition is essential for the country’s progress.

The updated timeline aligns with Dangote Refinery’s plan to start producing petrol by the end of June. Aliko Dangote, Chairman of the Dangote Group, announced at the Africa CEO forum in Kigali that Nigeria will soon be self-sufficient in petrol production thanks to Dangote Refinery’s efforts.

He believes that the refinery has the capacity to fulfill the petrol, diesel, and aviation fuel requirements of West Africa. Nigeria currently imports around 1 billion liters of PMS monthly, costing approximately N520bn. This suggests that the government could potentially save about N6.2tn annually on import expenses.