Economy
Port Harcourt Refinery Begins Test-Run, Prepares to Supply 12 States – NNPCL
The Nigerian National Petroleum Company Limited (NNPCL) has commenced the supply of crude oil for the test-running of the Port Harcourt Refining Company Limited, as confirmed by NNPCL officials. This marks a significant step towards the much-anticipated production of refined products, including Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel), for 12 states, including Abia, Rivers, Akwa Ibom, and Delta.
The ongoing test-run is expected to be completed shortly, with commercial production set to follow. The first phase of the Port Harcourt Refinery, as announced by the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, has been mechanically completed, with production expected to commence after the Yuletide.
According to Olufemi Soneye, Chief Corporate Communications Officer of NNPCL, the refinery is currently undergoing industry-based testing, adhering to international best practices. He assured Nigerians that commercial production would begin shortly, emphasizing the importance of ensuring the refinery’s efficient operation.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, confirmed that the plant has started receiving crude oil for testing. He highlighted the potential of the 60,000 barrels per day production to supply about 12 states, offering optimism for increased domestic availability of petroleum products.
The second phase of the refinery is expected to be completed in the fourth quarter of 2024, further boosting its refining capacity to 150,000 barrels per day, as announced by the Group Chief Executive Officer, Mele Kyari.
Oil marketers and experts anticipate a reduction in the cost of refined products with the commencement of operations at the Port Harcourt Refinery and the Dangote Refinery. While a significant price crash is not expected, the local production is predicted to positively impact the cost, providing relief from import charges and foreign exchange depletion.
Despite the optimism, the Nigeria Labour Congress expressed dissatisfaction with the government’s overall performance, citing unfulfilled promises and hardships faced by workers. The NLC vows to advocate for a living wage for Nigerian workers in 2024.
As the Port Harcourt Refinery progresses in its operational phases, Nigerians remain hopeful for a more sustainable and cost-effective domestic petroleum industry.
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