The Nigerian National Petroleum Company Limited (NNPCL) has initiated the supply of crude oil for the test-running of the Port Harcourt Refining Company Limited. Oil marketers have confirmed that the refinery will supply refined products, including Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and others, to 12 states, such as Abia, Rivers, Akwa Ibom, and Delta.
The NNPCL stated that the ongoing test-running phase will be completed shortly, with the commencement of commercial production expected in the near future.
Despite experts’ anticipation of reduced refined product costs, downstream operators caution against expecting a massive price crash.
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.
The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, confirmed the completion of the first phase and the refinery’s plan to refine 60,000 barrels of crude oil daily after the Christmas break.
Contacted for an update, the Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, assured that the refinery was undergoing a test run in accordance with international best practices.
He confirmed that crude oil is being supplied to the facility and emphasized adherence to global standards.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, verified that the refinery has started receiving crude oil.
He explained that testing is underway, ensuring stable operations before commercial production. Gillis-Harry affirmed that the 60,000 barrels per day capacity can sufficiently serve about 12 states.
The NNPCL revealed plans to complete the second phase of the facility by the fourth quarter of 2024, increasing crude refining capacity to 150,000 barrels per day.
Group Chief Executive Officer, Mele Kyari, expressed gratitude for reaching the mechanical completion milestone and affirmed commitment to completing the second phase in 2024.
Oil marketers and experts anticipate a reduction in the cost of refined products with the Port Harcourt and Dangote refineries in operation.
While acknowledging the positive impact on prices, they caution against expecting a significant crash.
The Nigeria Labour Congress (NLC) criticized the Federal Government for failing to fulfill promises, including the December start of the Port Harcourt refinery.
The NLC expressed concerns over unmet wage promises and economic policies, vowing to advocate for a living wage in 2024.
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