SHAFT OF LIGHT
After years of waiting, Port Harcourt Refinery comes on stream, writes Jackson Tamuno-Duke
Nigerians woke up on Tuesday morning to something more than just a piece of cheering news — the commencement of production operations by the Port Harcourt Refinery after undergoing renovation and modernisation.
The news, certainly would remain top of the chart, if it were measurable, for the rest of the week. Nigerians have been waiting for such news. The process began in 2021 after the federal government secured a $1.5bn contract to rehabilitate the facility.
Located at Alesa Eleme in Port Harcourt, the refinery complex comprises two operational units established in 1965 and 1989, and with a combined installed capacity of 210,000 barrels per day. The older plant has a capacity of 60,000 barrels per stream day, while the newer plant has 150,000 barrels per capacity.
The Port Harcourt Refinery Company (PHRC) as it is commonly called, is expected to produce premium motor spirit, diesel, and liquefied petroleum gas, among others.
The PHRC has long stood as a symbol of both promise and failure in the country’s oil industry. Once a beacon of hope, the refinery fell victim to years of mismanagement and neglect, leading to its idleness. However, Tuesday’s development now points towards a new era for this critical national asset, thanks in part to the determined efforts of the Nigerian National Petroleum Company Limited ( NNPCL). This development not only heralds the resuscitation of a vital infrastructure but also signifies a turning point for Nigeria’s economy.
Historically, the PHRC which began operations in the 1960s, played a pivotal role in Nigeria’s oil landscape. However, decades of inadequacies in its operations, notably failed Turn Around Maintenance (TAM), adversely affected its output. TAMs are essential for ensuring that refineries operate at optimal levels; when maintenance schedules are ignored, they lead to unplanned downtimes, reduced production capacity, and ultimately, financial losses. The PHRC has been plagued by failed TAMs, stunting its growth and leaving Nigeria heavily reliant on the importation of refined petroleum products.
In recent times, however, NNPCL has stepped up to the challenge of revitalizing the refinery. With substantial investments, the organization has embarked on a comprehensive overhaul of the facility to restore its functionality.
Let it be said that the commitment to revive the PHRC is a proactive response to the national demands for fuel security and self-sufficiency. By reactivating this refinery, Nigeria aims to break free from the cycle of total dependency on imported petroleum products, which has long burdened its economy with inflated costs.
An obviously elated Board and Management of NNPCL have e xpressed their heartfelt appreciation to Nigerian consumers for their support and excitement over the safe, successful rehabilitation and restart of the 60,000 barrels-per-day (bpds) Old Port Harcourt Refinery.The NNPCL described the achievement as “a significant step forward after years of operational challenges and underperformance.”
Olufemi Soneye, Chief Corporate Communications Officer at NNPCL, said this in a statement on Tuesday. He however, noted the state oil company is aware of “unfounded claims by certain individuals suggesting that the refinery is not producing products.” Soneye asserted: “For clarity, the Old Port Harcourt Refinery is currently operating at 70 per cent of its installed capacity, with plans to ramp up to 90%.
“The refinery is producing the following daily outputs: Straight-Run Gasoline (Naphtha): Blended into 1.4 million liters of Premium Motor Spirit (PMS or petrol)
Kerosene: 900,000 liters
Automotive Gas Oil (AGO or Diesel): 1.5 million liters
Low Pour Fuel Oil (LPFO): 2.1 million liters
Liquefied Petroleum Gas (LPG): Additional volumes”
The statement further explains that the company has “made substantial progress on the new Port Harcourt Refinery, which will begin operations soon without prior announcements.”
Soneye added: “We urge Nigerians to focus on the remarkable achievements being realised under the able and progressive leadership of President Bola Ahmed Tinubu, and to support efforts aimed at delivering more dividends to the nation.
“Malicious attacks on clear progress only undermine the significant strides made by NNPC Limited and the country.”
President Bola Tinubu, also, could not hold back his joy as he extends his heartfelt congratulations to the NNPCL on the successful revitalization of the PHRC.
The President, in a statement by Bayo Onanuga, Special Adviser on Information and Strategy, “acknowledges the pivotal role of former President Muhammadu Buhari in initiating the comprehensive rehabilitation of all our refineries and expresses gratitude to the African Export-Import Bank for its confidence in financing this critical project.”
The economic advantages of bringing the Port Harcourt Refinery online at this critical moment in Nigeria cannot be overstated. First and foremost, the refinery’s operation is expected to deliver significant cost savings. The current practice of importing refined petroleum products, subjects the country to volatile global oil prices, waste of foreign exchange resources, and creates opportunities for corruption during importation processes. By refining oil locally, Nigeria can significantly reduce the cost of petroleum products, making fuel more accessible to consumers and businesses alike.
Moreover, reviving the Port Harcourt Refinery is poised to create thousands of job opportunities, both directly and indirectly. The refinery will require skilled labor for its operations and maintenance, while ancillary industries, including suppliers and transport services, will also receive a boost from the revitalization. Job creation is crucial in a country grappling with high unemployment rates, especially among the youth. As these jobs become available, they can inspire hope and foster economic engagement, steering people away from crime and unrest.
Additionally, a functional Port Harcourt Refinery will stimulate local economies through the demand for goods and services. As the refining operations ramp up, local businesses involved in anything from machinery and equipment supply to fuels distribution will see increased activity. This ripple effect can contribute to broader economic growth by enhancing the community’s capacity to generate revenue and reinvest in other sectors.
Furthermore, the resurgence of refineries like Port Harcourt presents an opportunity to adopt contemporary and cleaner refining technologies, potentially aligning Nigeria with global sustainability goals. Embracing environmental stewardship as part of the refinery’s operation will demonstrate Nigeria’s commitment toward greener practices.
Also, relaunch of the Port Harcourt Refinery mirrors the sentiment of hope and renewal by the present administration of President Bola Tinubu, emerging from a backdrop of ‘decay.’ For Nigeria, this revival signifies a long-awaited reawakening from years of neglect and mismanagement. It symbolizes an opportunity to emerge stronger, more resilient, and more self-reliant.
The success of the Port Harcourt Refinery will also enhance Nigeria’s bargaining power on the international stage. As the nation seeks to position itself as a regional leader in energy production, the operational refinery can serve as a cornerstone of national pride and economic strategy. Demonstrating the capacity to refine its resources efficiently would bolster Nigeria’s reputation as an oil-rich nation striving for self-sufficiency.
In conclusion, the revival of the Port Harcourt Refinery by NNPCL is an anticipated watershed moment for Nigeria’s oil and economic landscape. The multifaceted advantages—from reduced fuel costs and job creation to environmental benefits and enhanced international stature — promise a brighter, more sustainable future. Just as the sun brings light and warmth, the revival of the Port Harcourt Refinery aims to illuminate a path towards economic resurgence in Nigeria, transforming what was once a major problem and headache into a foundation for progress and hope.
Tamuno-Duke, a Petro-Chemical Engineer, writes from Port Harcourt, Rivers State
