After 20 Years, PH Refinery Commences Operation

The Port Harcourt Refinery has officially resumed operations after being inactive for over 20 years.
The Nigerian National Petroleum Company (NNPC) Limited, announced on Tuesday that the first trucks began loading petroleum products, marking a significant milestone in Nigeria’s energy sector.
This revival follows a $1.5 billion rehabilitation project initiated since April 2021, aimed at modernising the facility, which has a combined capacity of 210,000 barrels per day from its two units established in 1965 and 1989.

The rehabilitation of the refinery has been ongoing since 2021, following the $1.5 billion contract approved by the federal government for the purpose.

Located at Alesa Eleme in Port Harcourt, Rivers State, the refinery complex comprises two operational units established in 1965 and 1989 and with a combined installed capacity of 210,000 barrels per day.
The older plant has a capacity of 60,000 barrels per stream day, has now been revived while the newer plant with 150,000 barrels per day capacity is targeted to commence operation by mid 2025.

This is as President Bola Tinubu extended his heartfelt congratulations to the NNPC on the successful revitalisation of the Port Harcourt refinery.

With this development, key industry analysts and petroleum marketers are predicting a new price adjustment for Premium Motor Spirit (PMS) also called petrol as the restreaming of the refinery is expected to boost domestic supply, reduce Nigeria’s reliance on imported fuel and alleviate foreign exchange pressures.

The restreaming signals the commencement of crude oil processing from the plant and delivery of petroleum products into the market.

President Tinubu, in a statement by his spokesman, Bayo Onanuga acknowledged the pivotal role of former President Muhammadu Buhari in initiating the comprehensive rehabilitation of all our refineries and expresses gratitude to the African Export-Import Bank for its confidence in financing this critical project.

Furthermore, Tinubu commended the leadership of NNPC Limited’s group chief executive officer, Mele Kyari, whose unwavering dedication and commitment were instrumental in overcoming challenges to achieve this milestone.

With the successful revival of the Port Harcourt refinery, President Tinubu urged NNPC Limited to expedite the scheduled reactivation of both the second Port Harcourt refinery and the Warri and Kaduna refineries.

These efforts will significantly enhance domestic production capacity alongside the contributions of privately-owned refineries and make our country a major energy hub, with the gas sector also enjoying unprecedented attention by the administration.

He underscored his administration’s determination to repair the nation’s refineries, aiming to eradicate the disheartening perception of Nigeria as a major crude oil producer that lacks the ability to refine its own resources for domestic consumption.

Highlighting the values of patience, integrity, and accountability in the rebuilding of the nation’s infrastructure, President Tinubu called upon individuals, institutions, and citizens entrusted with responsibilities to maintain focus and uphold trust in their service to the nation.

On Tuesday, trucks began loading petroleum products which include Premium Motor Spirit (PMS) or petrol, Automotive Gas Oil (AGO) or diesel and Household Kerosene (HHK) or Kerosene, while other product slates will be dispatched as well.

In their immediate response to the situation, marketers and analysts commended the company for ensuring that the refinery begins operations to further complement supply from the 650,000 mega Dangote refinery.

Speaking with LEADERSHIP following the news of the coming on stream of Port Harcourt refinery, an oil policy expert who has worked supporting oil reforms in Nigeria since 2011, Henry Adigun said, this is a good starting point and Nigeria’s vast market requires multiple suppliers to ensure price stability and supply sustainability.

Adigun said, with Port Harcourt refinery now in operation, distribution challenges would be eased as the volume from the facility would take care of demand from the eastern market. He also added that this development would engender competitiveness in pricing and that soon it would reflect on pump price stability.

Also speaking, general secretary of the Petroleum Dealers Association of Nigeria (PEDAN), Ibrahim Yahaya, said, though the volume output from the refinery may be about 40,000 barrels, it would definitely go a long way to provide market stability.

Yahaya, said already domestic consumption of petrol has reduced by about 60 per cent going by sales record of marketers, a combination of supply from both Dangote and Port Harcourt would create effective demand and supply balance.

He also urged the NNPC to double efforts to bring Warri and Kaduna refineries on stream.

According to Yahaya, if the company can commission both plants by Q2, 2025 the three government owned refineries could increase production by about 100,000 barrels a day which will motivate investment in the downstream industry.

He also presumed that, price of petrol would likely reduce given that the Port Harcourt refinery would be refining Nigerian crude and a guaranteed feedstock from the NNPC would support price adjustments.

At a brief ceremony to mark the commencement of products loading at the Refinery on Tuesday in Port Harcourt, the group CEO, Mele Kyari described the commencement of the loadout activities as a monumental achievement for Nigeria which signifies a new era of energy independence and economic growth for the country.

The GCEO particularly thanked President Bola Ahmed Tinubu for his unwavering support and understanding towards the rehabilitation project and for his persistence to ensure energy security for the country.

Kyari also expressed deep appreciation to the NNPC Ltd Board of Directors and the entire staff for their support and commitment, which crystallised into the streaming of the refinery.

He also commended the contractors for doing a great job in ensuring that the refinery is delivered despite all challenges. The GCEO further thanked Nigerians for their patience and for the legitimate expectations of the Company to deliver on the other refineries.

In his remarks, the chief executive of the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed congratulated the NNPC Ltd for the milestone and assured of his agency’s continued support towards the completion of rehabilitation work at the other refineries.

The PHRC rehabilitation project, is an Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) project that is aimed at restoring the refinery to full functionality and renewal. It has achieved over 16 million manhours with zero Loss Time Injury (LTI).