NNPCL Nears Completion of Testing for Port Harcourt Refinery Revival

The Nigerian National Petroleum Corporation Limited (NNPCL) recently announced that the Port Harcourt refinery, currently undergoing repairs, is nearing completion of testing, which will ensure its efficient operation. According to the NNPCL spokesperson, Femi Soneye, the testing phase is expected to conclude shortly, marking a significant step towards the refinery’s full operation. The initial processing rate is set at 60,000 barrels per day, with plans to reach its maximum capacity of 210,000 barrels per day later in the year.

The Port Harcourt refineries, part of Nigeria’s state-owned refineries, have been inactive for several years. However, the government has been actively working to revitalize them as part of its strategy to reduce the country’s dependence on imported refined products. In December, the NNPCL announced the successful completion of the Area 5 section of the Port Harcourt refinery, including mechanical completion and flare start-up.

In March 2021, the federal government approved a $1.5 billion contract for the repair of the 210,000-barrel capacity Port Harcourt refinery. The rehabilitation project, assigned to the Italian company Tecnimont SPA, was scheduled to unfold in three phases over 18, 24, and 44 months. The CEO of the NNPCL has stated that the second phase of repair works for the Port Harcourt refinery will be completed by the fourth quarter of 2024.

Nigeria has been striving to end the importation of petroleum products to detach fuel prices from forex market volatility and control prices. The 650,000 bpd Dangote refinery is part of the government’s strategy to end fuel imports, alongside refineries in Kaduna and Warri, which are expected to resume operations before the end of 2024. However, since the removal of the fuel subsidy in June, petrol prices have surged by over 200%, resulting in increased transportation costs for the average Nigerian.

Source: Nairametrics