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, as confirmed by oil marketers and NNPCL officials. The Port Harcourt Refinery is expected to produce refined products such as Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and others for distribution to 12 states, including Abia, Rivers, Akwa Ibom, and Delta.
According to the NNPCL, the ongoing test-running phase will be completed shortly, and commercial production of refined products is set to commence soon. The development follows the mechanical completion of the rehabilitation work on the Area-5 Plant of the Port Harcourt Refining Company, as announced by the Federal Government on December 21, 2023.
The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, stated that the first phase of the refinery’s operation would involve refining 60,000 barrels of crude oil daily after the Christmas break. The NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, affirmed that the refinery was undergoing industry-based testing, with a focus on various operational aspects.
President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, confirmed the receipt of crude oil at the refinery and stated that testing was in progress. He estimated that the 60,000 barrels per day production capacity would be sufficient to serve about 12 states in Nigeria.
Experts and downstream operators anticipate a reduction in the cost of refined products once the Port Harcourt and Dangote refineries start full-scale operations. However, they note that this may not lead to a massive price crash immediately. The Dangote refinery is also expected to contribute to lowering the cost of refined products, with projections for the delivery of diesel and aviation fuel starting in January.
While the commencement of refinery operations is seen as a positive development, the Nigeria Labour Congress (NLC) criticized the government for failing to fulfill various promises, including the timely operation of the Port Harcourt refinery. The NLC expressed concerns about economic policies, the implementation of the minimum wage, and the rising cost of living for workers and Nigerians in general.