Officials of the Nigerian National Petroleum Company Limited, NNPCL, has said the company has commenced the supply of crude oil for the test-running of the Port Harcourt Refining Company Limited.
Oil marketers confirmed this and stated that the plant would supply refined Premium Motor Spirit, widely known as petrol, Automotive Gas Oil (diesel), as well as other products to 12 states including Abia, Rivers, Akwa Ibom, and Delta, among others.
NNPCL disclosed that the ongoing test-running of the plant would be completed shortly, revealing further 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.
Recall that the Federal Government on December 21, 2023, announced the mechanical completion of rehabilitation work on the Area-5 Plant of the Port Harcourt Refining Company in Rivers State.
According to the Federal Government, 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), Heineken Lokpobiri, had stated that the first phase of the Port Harcourt Refining Company Limited 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.
The Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, on Sunday December 31, 2023, 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.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Billy Gillis-Harry also confirmed on the same Sunday that the plant had started receiving crude oil.
He said testing was ongoing at the facility and noted that the 60,000 barrel per day 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.
On 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.”
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 150,000 barrels per day crude by the facility.
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