After Dangote, Another Nigerian Refinery Begins Test Run to Start Operation Soon, NNPC Gives Update
- The Nigerian National Petroleum Company Limited has said that the Port Harcourt refinery is undergoing a test run
- The statement comes after the Minister of State for Petroleum Resources said the refinery will commence operation after Christmas
- The Nigerian Upstream Petroleum Regulatory Commission has asked oil companies to prioritise local refineries in the supply of crude
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The Nigerian National Petroleum Company Limited (NNPCL)has begun the supply of crude oil for the test-running of the Port Harcourt Refinery Company Limited.
Oil marketers confirmed the development and said the plant would supply petrol, diesel, and other products in 12 states, including Abia, Akwa Ibom, and Delta States.
Source: UGC
Port Harcourt refinery to begin operation after a test run
The NNPC said that the test-running would be completed soon and that commercial production of products would commence shortly.
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The development comes as experts and operators in the downstream sectors said that, although the cost of products would reduce immediately after the refinery begins operation, there would be little price reduction.
The Nigerian government stated on December 21, 2023, that the mechanical completion of rehabilitation work on the Area-5 Plant of the Port Harcourt Refining Company Limited in Rivers State.
The government said the refinery’s first phase had been completed as the facility would start producing 60,000 barrels of crude oil daily after the Christmas break.
According to a Punch report, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said that the first phase of the refinery was completed on December 20, 2023, stating that refined products would commence after the holidays.
Lokpobiri said:
“This is to announce to Nigerians that in fulfillment of our pledge to complete phase one of the Port Harcourt refinery by the end of 2023 and the subsequent streaming of phase two in 2024, we happily announce the mechanical completion of flare start-up on December 20, 2023.
“This heralds the commencement of the production of petroleum products after the Christmas break. We want to thank Nigerians for their patience and trust in the NNPC to deliver on our promise and mandate in rehabilitating our refineries.”
FG mandates oil firms to begin supply of crude to local refineries
The development comes as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has ordered oil companies in Nigeria to supply about 483,000 barrels of crude oil daily to local refineries for the next six months, beginning in January 2024, Legit.ng reported.
The initiative is part of Nigeria’s efforts to ensure regular supply to local refiners for domestic consumption,
About six local refineries are expected to begin production in the coming year, including the 650,000-capacity Dangote refinery and Nigeria’s three refineries in Port Harcourt, Warri, and Kaduna.
The Dangote refinery has received about four million barrels of crude oil out of the six million promised by the Nigeria National Petroleum Company Limited (NNPCL).
Legit.ng reported that Africa’s largest refinery received another one million barrels shipment on Thursday, December 29, 2023.
Six refineries to begin production in 2024
According to recently published crude supply obligations guidelines by NUPRC, the Dangote refinery will receive the largest supply of 325,000 barrels daily.
Data from the Commission shows that six refineries have a refining capacity of 864,500 barrels daily and are expected to begin operation in 2024.
Reports say oil producers must supply more than half of crude requirements to meet the daily refining capacities.
Other refineries meant to benefit from the crude oil supply are the Warri and the Port Harcourt refineries, which are expected to begin production in 2024.
Marketers speak on petrol price crash in 2024 as Port Harcourt refinery, others commence operation
Legit.ng reported that With the anticipated resumption of operations at the Port Harcourt Refinery in Rivers State in January, stakeholders in the downstream petroleum subsector have guaranteed that the current energy sector crisis would soon come to an end.
They made this known following the opening of the Akwa Ibom state chapters of the two industry regulatory bodies at Ibom Icon Hotel in Uyo, the state capital.
This comes after Legit.ng reported that the long-awaited Port Harcourt refinery is now ready to begin operations.
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Source: Legit.ng
