In a significant stride towards energy self-sufficiency, the Port Harcourt Refining Company (PHRC) Limited has officially commenced operations, marking a pivotal moment for Nigeria’s oil and gas sector.
The refinery, boasting a combined daily capacity of 210,000 barrels, signaled the initiation of oil refining with the illumination of its flare.
This development follows closely on the heels of the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri’s announcement in August, expressing optimism that the Port Harcourt refinery would be operational by December 2023.
The primary objective, as stated by the Minister, is to curtail the nation’s dependence on fuel imports.
Corroborating Lokpobiri’s stance, the Nigerian National Petroleum Corporation Limited (NNPCL) has emphatically declared that the era of importing petroleum products into the country will come to a halt by December 2024.
Mele Kyari, the Group Chief Executive Officer of NNPCL, affirms, “By the end of December this year, we will start the Port Harcourt refinery; early in the first quarter of 2024, we will initiate the Warri refinery, and by the end of 2024, the Kaduna refinery will come into operation.”
This momentous achievement is the result of concerted efforts and a substantial financial commitment by the Nigerian government.
In March 2021, the Federal Executive Council approved a $1.5 billion budget for the rehabilitation of the Port Harcourt Refinery.
Over the past decade, the government has invested a staggering N11.35 trillion ($25 billion) in refurbishing the country’s three refineries.
As the Port Harcourt Refinery springs back to life, stakeholders in the downstream sector are optimistic about the potential impact on the price of fuel.
With the current price exceeding N617 per litre, there is hope that the increased domestic refining capacity will lead to a positive shift in pricing dynamics.
This milestone not only marks a crucial step towards energy independence but also aligns with the government’s broader vision to revitalize and optimize the country’s refining infrastructure, ensuring a more sustainable and self-reliant energy future for Nigeria.
