The Port Harcourt Refining Company (PHRC) in Rivers State has officially begun crude oil processing, a milestone marking a pivotal moment for Nigeria’s energy sector.
The announcement was made on Tuesday by the Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited (NNPCL), Femi Soneye, who described the development as a transformative step for Nigeria’s energy independence.
“This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation,” Soneye said, congratulating President Bola Ahmed Tinubu, the NNPC Board, and GCEO Mele Kyari for their dedication to the project.
He also revealed that truck loading operations have commenced, and efforts are underway to bring the Warri Refinery online soon.
Journey to Refinery Rehabilitation
- Background: The Port Harcourt Refinery, one of Nigeria’s largest, was shut down in 2019 due to operational inefficiencies. In 2021, the Federal Government approved $1.5 billion for its rehabilitation.
- Timeline Challenges: Since its shutdown, several deadlines for recommencing operations were missed. Initial expectations for production to resume in September 2023 were deferred multiple times.
- Rehabilitation Efforts: Mele Kyari, the Group Managing Director of NNPCL, has been at the forefront of efforts to revamp Nigeria’s refining capacity. During an August 2024 inspection, Kyari expressed optimism that Nigeria could become a net exporter of petroleum products by 2024.
The commencement of operations at the Port Harcourt Refinery comes at a time when Nigeria is grappling with high fuel prices following the removal of fuel subsidies.
- Local Refining Capacity: Nigeria has long relied on importing petroleum products, despite being a major crude oil producer.
- Fuel Subsidy Impact: With subsidies removed, fuel prices have risen sharply, straining citizens’ finances. The resumption of local refining could help stabilize prices.
- Complementing Dangote Refinery: The Dangote Petroleum Refinery, which began diesel and aviation fuel production in September 2024, has also bolstered Nigeria’s refining capacity.
With the combined efforts of the Port Harcourt Refinery and the Dangote Refinery, Nigerians hope for relief from high fuel costs and increased domestic refining capacity.
As these projects gain momentum, the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, reaffirmed the government’s commitment to rehabilitating all state-owned refineries to ensure sustainable energy solutions.
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