Port Harcourt Refinery Commences Crude Oil Processing
The Port Harcourt Refining Company (PHRC) Ltd in Rivers State has officially begun crude oil processing, marking a significant milestone in Nigeria’s energy sector.
The announcement was made by Femi Soneye, Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited (NNPCL), who described the development as a turning point for Nigeria’s journey toward energy independence and economic growth.
“Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing. This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation,” Soneye stated on Tuesday.
He extended congratulations to President Bola Ahmed Tinubu, the NNPCL Board, and GCEO Mele Kyari for their dedication to the project, emphasizing its transformative impact on the country’s energy future.
Refinery Operations and Future Plans
Soneye confirmed that truck loading of petroleum products would commence immediately. He also revealed that efforts were underway to bring the Warri Refinery online soon.
This milestone comes after years of delays and missed deadlines. Upon assuming office in August 2023, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, projected the refinery would begin operations in September 2023. However, this timeline shifted multiple times, with the latest projection set for April 2024.
During an inspection of the refinery’s rehabilitation in August, NNPCL GCEO Mele Kyari stated, “We are focused on delivering this rehabilitation project, our two other refineries, and all other investments towards revamping the nation’s refining capacity. We are hopeful that in 2024, this country will be a net exporter of petroleum products.”
A Step Towards Self-Sufficiency
The Federal Government had approved $1.5 billion in 2021 to rehabilitate the Port Harcourt refinery, one of Nigeria’s largest, which had been dormant since 2019. This development is seen as a significant step toward reducing Nigeria’s dependence on imported petroleum products, a situation that has long strained the country’s economy.
For decades, Nigeria, despite being a major crude oil producer, relied on costly fuel imports due to insufficient local refining capacity. The country often swapped crude oil for imported petrol, incurring significant costs from subsidies aimed at keeping fuel prices low for domestic consumers.
Impact of Dangote Refinery
The commencement of operations at the Port Harcourt refinery follows the production kickoff at the Dangote Petroleum Refinery, which began producing diesel and aviation fuel in September 2024. The Dangote refinery, the largest in Africa, is expected to play a crucial role in transforming Nigeria’s refining landscape.
Relief for Nigerians
With the Port Harcourt refinery now operational and the Dangote refinery already contributing to local production, many Nigerians hope these developments will mitigate the economic impact of fuel subsidy removal. The subsidy removal earlier in the year had caused fuel prices to spike from around ₦200 to over ₦1,000 per litre, placing a heavy burden on households and businesses.
The revitalization of Nigeria’s refining capacity is anticipated to stabilize fuel supply, reduce import dependency, and potentially lower fuel costs, bringing much-needed relief to citizens.
