Port Harcourt Refinery Finally Begins Crude Oil Processing
The Port Harcourt Refining Company (PHRC) Ltd has officially commenced crude oil processing, marking the end of a series of missed deadlines and setbacks.
The announcement was made by Femi Soneye, the Chief Corporate Communications Officer of the Nigerian National Petroleum Corporation Limited (NNPCL), who described the event as a “monumental achievement” for Nigeria. “Today marks a groundbreaking milestone as the Port Harcourt Refinery officially commences crude oil processing,” Soneye said in a statement on Tuesday. “This signifies a new era of energy independence and economic growth for our nation.”
Soneye also congratulated President Bola Ahmed Tinubu, the NNPC Board, and Group CEO Mele Kyari for their leadership and unwavering commitment to the transformative project. “Together, we are reshaping Nigeria’s energy future!” he added.
In addition to the commencement of crude processing, truck loading at the refinery will also begin today. Soneye revealed that NNPCL is “working tirelessly” to bring the Warri Refinery back online, further expanding Nigeria’s refining capacity.
This achievement marks the end of a long series of delays for the Port Harcourt refinery, which has faced multiple missed deadlines over the years. Initially, the refinery was expected to begin production in September 2023, following comments by Minister of State for Petroleum Resources, Heineken Lokpobiri. However, the date was later pushed to December, and then further delayed to March 2024. In a more recent statement, NNPCL’s Mele Kyari had projected that production would begin in April 2024.
Despite the setbacks, Kyari remains optimistic. “We are focused on delivering this rehabilitation project, our two other refineries, and all other investments toward revamping the nation’s refining capacity,” he said during an inspection in August. “We are hopeful that in 2024, this country will be a net exporter of petroleum products.”
Special adviser to the President, Sunday Dare, also announced about the Port Harcourt Refinery on his X page,
“The Port Harcourt Refinery has two Wings. The Old Refinery comes on stream today with an installed production capacity of 60,000 barrels per day of crude oil. About 200 trucks are. Expected to load products daily from the refinery Renewing the Hopes of Nigeria.” He posted
Also Read: Dangote Refinery Begins Export Journey to West Africa
The Port Harcourt Refinery has been undergoing extensive repairs since the Federal Government approved a $1.5 billion investment in 2021 to rehabilitate the facility, which was shut down in 2019. As one of Nigeria’s largest refineries, the plant’s revival is seen as essential for the country’s energy security.
For years, despite being one of the world’s largest crude oil producers, Nigeria has struggled with a lack of local refining capacity. This has led to heavy reliance on imported petroleum products, burdening the country’s foreign exchange reserves. To maintain affordable prices for domestic consumers, Nigeria had been subsidizing fuel imports, leading to financial strains, especially as oil revenues and foreign currency reserves dwindled.
However, the tide is beginning to turn. In September 2024, the Dangote refinery, another key player in Nigeria’s refining future, began producing petrol, just months after announcing its operational launch. The Dangote refinery has also started producing diesel and aviation fuel, marking another critical step in Nigeria’s efforts to address its refining shortfall.
With the Port Harcourt Refinery now online and the Dangote refinery in full operation, there is renewed optimism among Nigerians that these developments will help mitigate the effects of the fuel subsidy removal, which led to a dramatic rise in fuel prices—from around N200 to over N1,000 per litre.
