The Nigerian National Petroleum Company Limited (NNPCL) has initiated the supply of crude oil for the test-running of the Port Harcourt Refinery.
According to NNPCL officials the facility is being prepped to refine Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and other products destined for 12 states, including Abia, Rivers, Akwa Ibom, and Delta.
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“The ongoing test-running will soon conclude,” assured Olufemi Soneye, Chief Corporate Communications Officer of NNPCL. “Commercial production of refined products will also commence shortly.”
This comes after the announcement of completion of the first phase of the Port Harcourt refinery’s rehabilitation by Senator Heineken Lokpobiri, Minister of State for Petroleum Resources.
Lokpobiri had announced the mechanical completion of the plant, stating, “Production of petroleum products will kick off after the Yuletide.”
The Petroleum Products Retail Outlets Owners Association of Nigeria President, Billy Gillis-Harry, affirmed that the refinery has commenced receiving crude oil and highlighted the facility’s capacity to serve approximately 12 states.
“Even at 50% capacity, the refinery will provide a substantial volume, enough to cater to the needs of about 12 states,” Gillis-Harry stated.
While experts and downstream operators foresee a reduction in the cost of refined products with the operationalization of Port Harcourt and Dangote refineries, they tempered expectations, emphasizing that the drop in prices wouldn’t lead to a massive crash.
“There will be a reduction in prices, not a significant crash,” highlighted industry voices. Chief John Kekeocha from the Independent Petroleum Marketers Association of Nigeria echoed this sentiment, stating, “If production commences as promised, the cost of products will certainly be affected downward.”
However, the Nigeria Labour Congress (NLC) criticized the Federal Government for alleged unfulfilled promises, including the delayed commencement of the Port Harcourt refinery’s operations, among other economic concerns. NLC President, Joe Ajaero, who expressed dissatisfaction, over the delay said: “Government’s unfulfilled agreements have made life harder for workers.”
Despite the optimism surrounding the refinery’s operationalization and its potential impact on product prices, the broader economic landscape remains a subject of concern for various stakeholders, promising a vigilant stance in the year ahead.
