After decades of unfulfilled promises, Nigeria’s Port Harcourt Refinery has finally come back online, offering a glimmer of hope for a nation long ensnared by fuel shortages, reliance on imports, and a debilitating foreign exchange crisis.
With its resumption after more than 30 years of dormancy, the refinery, capable of processing 60,000 barrels per day, could serve as a crucial pillar in the country’s bid to unlock Nigeria’s energy self-sufficiency.
The Port Harcourt Refinery in Eleme, it would be recalled, comprises two facilities: the old refinery, with a 60,000-barrel-per-day capacity, and the new refinery, capable of refining 150,000 barrels per day. The old refinery, operational since 1965, is Nigeria’s first refinery and had remained idle since 1990 when the newer unit became the primary production hub. The refinery has a unique configuration where one barrel of crude oil yields a maximum of 23–24% gasoline.
According to Alex Ogedengbe, a former Group Executive Director at NNPCL, the old refinery has a single conversion unit, while the new facility boasts four conversion units, significantly boosting its efficiency.
For over two decades, the Port Harcourt Refinery, once the flagship of Nigeria’s refining sector, lay dormant.
The journey to its revival is littered with missed deadlines and challenges: 2000s to Early 2010s: A series of refurbishment deadlines were set and missed, hampered by inadequate funding, operational inefficiencies, and bureaucratic delays.
2015: The NNPC initiated plans for upgrades but fell short of its timelines due to technical hurdles.
2017: Another ambitious rehabilitation plan was announced, promising significant capacity upgrade. However, delays in securing funding and initiating work stalled progress.
2019: Private-sector partnerships were expected to fund repairs, with promises of resumed operations, but the project failed to meet its targets.
2021: The Federal Government approved $1.5 billion for comprehensive rehabilitation, with NNPC projecting production by mid-2023. The deadline passed with no significant output.
December 2023: NNPC completed the mechanical phase of the refinery’s turnaround maintenance and targeted production by year-end, a goal that also went unmet.
The political will and Kyari’s unique leadership
Speaking at a ceremony to mark the resumption of operations, on Tuesday, November 26, 2024, NNPCL’s Group Chief Executive Officer, Mele Kyari, called the achievement “monumental” and a turning point for Nigeria’s energy sector.
The Group CEO, this time, adopted a more cautious approach, refraining from setting specific timelines while working quietly towards operational readiness.
He expressed gratitude to President Bola Ahmed Tinubu for his steadfast support of the rehabilitation project and to NNPCL’s Board and workforce for their dedication.
Femi Soneye, NNPCL’s Chief Corporate Communications Officer, in a statement, described the refinery’s re-streaming as a fulfilment of the company’s commitment to restoring domestic refining capabilities.
According to him, the refinery is currently operating at 90% throughput and it produces straight-run gasoline (Naphtha) blended into 1.4 million litres of PMS daily; 900,000 liters of kerosene; 1.5 million liters of Automotive Gas Oil (Diesel); 2.1 million liters of Low Pour Fuel Oil (LPFO), and additional volumes of Liquefied Petroleum Gas (LPG), also known as cooking gas.
The NNPCL also dismissed claims that the truckout of products from the refinery had stopped because the loading bay had become empty.
In a video interview made available to the press on Monday, the Chief Security Officer of Alesa Kingdom in Rivers State, who works at the refinery loading bay, said, ” Production is one and loading has not stopped. I am one of the loaders from the host community. I loaded four trucks this morning (Monday). We will also be loading tomorrow. This is a very busy period for us. Those peddling fake news are just trying to malign the management.”
Industry experts argued that the successful restart of the refinery owes much to the decisive leadership of President Bola Ahmed Tinubu as well as the foundational role of former President Muhammadu Buhari, who initiated the comprehensive rehabilitation of Nigeria’s refineries during his tenure.
Despite widespread acclaim, scepticism lingers on social media, with some critics alleging that the refinery operates as a blending facility rather than a crude oil processing plant, the experts further hinted that one notable feature of the refinery’s operation is its incorporation of blending components, such as crack C5 from Indorama Petrochemicals (formerly Eleme Petrochemicals), to produce gasoline that meets international specifications.
This practice, according to them, is standard in the global refining industry, based on the intricacies involved in producing fuel that aligns with regulatory standards.
Professor Wumi Iledare, a prominent petroleum economist, described the development as a transformative milestone.
According to Iledare, the refinery’s current capacity of approximately 60,000 barrels per day represents 11.1% of the Nigerian National Petroleum Company Limited’s (NNPCL) domestic refining capacity, offering a critical opportunity to reduce the country’s dependency on imported fuel.
He said, “We must not underestimate a marginal move in a positive direction assuming transparency, accountability, and business ethics are on display.
“Yes, the 60,000 barrels per day NPHR, though marginal at best, within the context of supply availability, accessibility, and perhaps affordability, is a positive thing supplementing the volume expected from Dangote Refinery and others for now.”
James Gooder, Vice President of Crude Oil at Argus Media, speaking during a recent webinar hosted by the Major Energy Marketers Association of Nigeria (MEMAN), noted that combined with the Dangote Refinery’s output, the Port Harcourt Refinery could enhance supply stability and potentially lower fuel prices.
However, Gooder cautioned that drastic price reductions are unlikely without addressing Nigeria’s foreign exchange challenges and fluctuating global crude oil prices.
Light Shedrach, an energy analyst in a recent interview with TVC, called for a broader diversification of Nigeria’s oil and gas downstream sector to foster competition and reduce monopolistic tendencies by some players.
Shedrach said, “The Port Harcourt Refinery demonstrates what is possible when strategic planning meets commitment.
“If Nigeria can rehabilitate the Warri and Kaduna refineries and address lingering inefficiencies, the country could overcome its fuel and energy crises,” he noted.
He therefore highlighted the importance of accelerating the development of modular refineries to complement large-scale facilities like Port Harcourt and Dangote.
Responding to criticism around blending processes at the refinery, which involve incorporating components like crack C5 from Indorama Petrochemicals, he clarified that blending is a standard practice globally to meet product specifications.
Shedrach stressed the need for the media to report with accuracy and avoid sensationalism, which can exacerbate public anxiety.
“We must provide Nigerians with verifiable information,” he said. “This is not the time for divisive rhetoric; it is a time to build trust and transparency.
