In a significant development, the Nigerian National Petroleum Corporation Limited (NNPC) has announced that the test runs at the Port Harcourt Refinery, with a capacity of 60,000 barrels per day (bpd), are set to be completed by the end of this month. Femi Soneye, the spokesperson for NNPC, emphasized the importance of these tests, stating that they mark a crucial step towards the efficient operation of the refinery, which has been dormant for five years.
The rehabilitation work on the Area-5 Plant of the Port Harcourt Refinery was officially declared mechanically complete by the state-owned oil company in December. The first phase of the plant has concluded, and it is poised to refine 60,000 barrels of crude oil daily, with operations expected to commence post-Christmas.
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), provided insights into the completion timeline, noting that the first phase of the Port Harcourt Refinery Complex (PHRC) was finalized on December 20, 2023. He further announced that the production of refined products would kickstart after the Yuletide season.
Anticipation is building not only for the revival of the Port Harcourt refinery but also for the imminent inauguration of the Dangote Refinery, slated to commence oil refining this year. The combined impact of these operational refineries is expected to alleviate the strain on Nigeria’s foreign exchange reserves.
While the commencement of operations at these refineries is predicted to lower the cost of refined products, industry experts and downstream operators caution against expecting a massive price crash. The reduction in production costs, coupled with increased domestic refining capacity, is foreseen to contribute to stabilizing prices rather than precipitating a drastic market shift.
The successful revival of the Port Harcourt refinery and the impending operation of the Dangote Refinery represent key milestones in Nigeria’s efforts to enhance domestic refining capabilities. As these facilities come online, they are poised to play a crucial role in reshaping the country’s energy landscape and reducing its reliance on imported refined products.
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