The Nigerian National Petroleum Company Limited, NNPCL has started the supply of crude oil for the test-running of the Port Harcourt Refinery.
Oil marketers in the West African country confirmed the development and stated that the plant would supply refined Premium Motor Spirit, popularly called petrol, Automotive Gas Oil, otherwise known as diesel, as well as other products to 12 states including Abia, Rivers, Akwa Ibom, and Delta.
The NNPCL said that the ongoing test-running of the plant would be completed shortly and commercial production of refined products would also begin shortly.
This came as experts and downstream operators stated that though the cost of refined products would reduce once the Port Harcourt and Dangote refineries start pumping out products, it would not lead to a massive price crash.
On December 21, 2023, the Federal Government announced the mechanical completion of rehabilitation work on the Area-5 Plant of the Port Harcourt Refining Company in Rivers State.
It said the first phase of the plant had been completed, as the facility would start refining 60,000 barrels of crude oil daily after the Christmas break.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, had stated that the first phase of the PHRC was completed on December 20, 2023, adding that refined products’ production would commence after the Yuletide.
“This is to announce to Nigerians that in fulfillment of our pledge to complete phase one of the Port Harcourt refinery by the end of 2023 and the subsequent streaming of phase two in 2024, we happily announce the mechanical completion of flare start-up on December 20, 2023.
“This heralds the commencement of the production of petroleum products after the Christmas break. We want to thank Nigerians for their patience and trust in the NNPC to deliver on our promise and mandate in the rehabilitation of our refineries,” the minister stated.
When contacted on Sunday to state whether the plant had started producing refined products as projected by the minister, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, said crude oil was being supplied to the facility.
He said the refinery was being test-run, as this was in line with international best practice, and assured Nigerians that the plant would commence commercial production of refined products production shortly.
“We’ve completed the mechanical phase of the PH refinery Area 5 plant, installing all vital components. Licensor inspection has been done and catalysts delivered.
“Now, industry-based testing remains, focusing on leaks, air, line blowing, flushing, drying, steam out, calibration, plant inerting, and then hydrocarbon (crude oil) introduction.
“While we share the optimism, adherence to global best practices is crucial. Testing will conclude shortly, ensuring the refinery’s efficient operation. Production should commence shortly,” he stated.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, who led other marketers to the Port Harcourt refinery, confirmed on Sunday that the plant had started receiving crude oil.
He said testing was ongoing at the facility and noted that the 60,000 bpd of crude oil production was enough to serve about 12 states in Nigeria.