The Nigerian National Petroleum Company Limited has begun supplying crude oil for the Port Harcourt Refining Company Limited’s test run.
The PUNCH reported that oil marketers confirmed the news, stating that the plant would sell refined Premium Motor Spirit, also known as petrol, Automotive Gas Oil, also known as diesel, and other products to 12 states, including Abia, Rivers, Akwa Ibom, and Delta.
The NNPCL indicated that the plant’s ongoing testing will be completed soon, and that commercial production of refined products would also begin soon.
This happened after experts and downstream operators stated that, while the price 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.
The Federal Government announced the mechanical completion of rehabilitation work at the Port Harcourt Refining Company’s Area-5 Plant in Rivers State on December 21, 2023.
It stated that the first phase of the plant had been completed, and that the facility will begin refining 60,000 barrels of crude oil daily following the Christmas holiday.
The Minister of State for Petroleum Resources, claimed that the first phase of the PHRC will be completed on December 20, 2023, and that refined product production would begin after the Yuletide.
“This is to inform Nigerians that, in fulfilment of our pledge to complete phase one of the Port Harcourt refinery by the end of 2023, with phase two following in 2024, we are pleased to announce the mechanical completion of flare start-up on December 20, 2023.
“This marks the start of petroleum product production after the Christmas holiday. We want to thank Nigerians for their patience and trust in the NNPC to deliver on our promise and mandate in rehabilitating our refineries,” said the minister.
When asked on Sunday whether the plant had begun producing refined products as planned by the minister, NNPCL Chief Corporate Communications Officer, Olufemi Soneye confirmed crude oil was being supplied to the facility.
“We completed the mechanical phase of the PH refinery Area 5 plant successfully, installing all critical components. The licensor inspection has been completed, and the catalysts have been delivered.
“Industry-based testing is still used today, with a focus on leaks, air, line blowing, flushing, drying, steam out, calibration, plant inerting, and then hydrocarbon (crude oil) introduction.”
“While we share your optimism, we believe that adhering to global best practices is critical. Testing will be completed soon, assuring the refinery’s efficiency. Production should start soon,” he said.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, who led other marketers to the Port Harcourt refinery on Sunday, confirmed that the plant had begun receiving crude oil.
He stated that testing was still taking on at the site and mentioned that the 60,000bpd crude oil production was enough to serve about 12 states in Nigeria.
“I can confirm that they (the refinery) are now receiving crude because I was in Port Harcourt with some of our members and visited the refinery. The testing is underway, and it will take some time since they need to determine which elements of the refinery are operational and which are not.
“And all of that must be stable, which is why the refinery’s management must be supported to ensure that they deliver and begin commercial production of products. “However, I can confirm that what they told you is correct,” stated Gillis-Harry.
The PETROAN boss stated that the 60,000 barrels per day can serve Rivers, Bayelsa, Abia, Imo, Delta, Edo, Cross River, Akwa Ibom, and even beyond.” Also, keep in mind that it will be made on a daily basis. So if we load roughly 50 tankers of 33,000 liters each day, that will suit a variety of needs.”
The refinery’s manager, NNPCL, also indicated that the second phase of the plant would be finished in the fourth quarter of 2024 and would lead to the refining of 150,000bpd crude by the facility.
