The NNPCL has stated that a test run on the 60,000-bpd refinery in Port-Harcourt will be completed this month ahead of the full resumption of work later.
Spokesperson for the NNPCL Femi Soneye stated this yesterday. According to him, “Testing will conclude shortly, ensuring the refinery’s efficient operation. That phase will be completed this month”
The refinery, currently undergoing repair works, is set to commence operations at an initial processing rate of 60,000 barrels per day.
The NNPCL anticipates achieving its maximum capacity of 210,000 barrels per day later in the year.
Backstory
- The Port Harcourt refineries are part of the state-owned refineries in Nigeria that have remained moribund for several years. However, the government is making efforts to revitalize these refineries as part of a strategy to reduce the nation’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 the mechanical completion and flare start-up.
- In March 2021, the federal government approved a $1.5 billion contract to repair the 210,000-barrel capacity Port-Harcourt refinery. The rehabilitation project, entrusted to the Italian company Tecnimont SPA, was slated to unfold in three phases spanning 18, 24, and 44 months.
- Also, the CEO of the NNPCL has stated that the second phase of repair works of the Port-Harcourt refinery will be completed by the fourth quarter of 2024.
What you should know
- In recent years, Nigeria has sought to end the importation of petroleum products as a measure to detach fuel prices from the volatility of the forex market and also keep prices under control. The 650,000 bpd Dangote refinery is part of the FG’s strategy to end fuel imports coupled with refineries in Kaduna and Warri which are billed to resume operations before the end of 2024.
- Since the removal of the fuel subsidy in June, petrol prices have soared by over 200% thereby increasing transportation costs for the average Nigerian.
NAIRAMETRICS