The Nigerian National Petroleum Company Ltd (NNPCL) has made a fresh move in its quest to bolster Nigeria’s local refining capacity by entering into an agreement with the African Refinery.
The agreement entails the co-location of a 100,000 barrels per day (bpd) refinery within the Port-Harcourt Refinery complex, heralding a transformative phase in the nation’s petroleum industry.
In a press statement disseminated on the company’s official platform, NNPCL disclosed details of the collaboration, noting its potential to revolutionize Nigeria’s energy sector.
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Once operational, the new refinery is slated to produce an array of essential petroleum products, including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Aviation Turbine Kerosene (ATK), and Liquefied Petroleum Gas (LPG), catering to both local and international markets.
“The signing of the agreement is a significant step towards setting in motion the process of building a new refinery which, when fully operational, will supply PMS, AGO, ATK, LPG, and other petroleum products to the local and international markets and provide employment opportunities for Nigerians,” highlighted NNPCL in its press release.
This strategic collaboration is said to underscore Nigeria’s commitment to enhancing local refining capabilities and reducing dependence on imported petroleum products. Over the years, the administration of President Muhammadu Buhari has implemented various initiatives to address this issue, including granting licenses to modular refineries and providing substantial support to the 650,000 bpd Dangote Refinery in Lagos, in which NNPCL holds a 20% stake.
However, despite these efforts, challenges persist in the nation’s refining sector. The long-awaited rehabilitation of the Port Harcourt Oil Refinery, nearing completion according to NNPCL’s announcement last month, has encountered delays in commencing operations.
While the mechanical completion of the PHRC was declared in December, the refinery has yet to commence operations, prompting scrutiny from the Senate Ad-Hoc Committee to Investigate the Turnaround Maintenance of Nigeria’s Refineries.
The committee said the Port Harcourt Refinery is not ready but will begin operation before the end of December.
In the face of these challenges, Nigeria continues to rely on imported petroleum products, further exacerbating concerns surrounding fuel subsidy removal and currency devaluation.
Nevertheless, recent developments, such as the supply of diesel and aviation fuel from the Dangote Refinery, offer a glimmer of hope that Nigeria may soon achieve self-sufficiency in petroleum refining.
While the signing of the share subscription agreement between PHRC and African Refinery is remarkable in Nigeria’s journey towards energy independence, the question of ‘how much longer will it take?’ has been echoing – especially as fuel scarcity seems to be resurfacing in many cities across the country.
On Thursday, the president of the Trade Union Congress (TUC), Festus Osifo, said the federal government appears to be reneging on its assurance that the old Port Harcourt Refinery will commence operations by the first week of April.
The union has expressed optimism that the refinery would help curtail the high cost of petrol, by ensuring the availability of the products across the country.
“Although the inspection, both the contractors and those that are employees of company, they told us clearly that the refinery is going to come into fruition on the 1st week of April,” Osifo said.
“Today, we are approaching the first week of April this year. Now, we are approaching the end of April and the refinery production has not resumed in the old Port Harcourt Refinery.
“We wish to, hereby, call on the federal government to do everything within its arsenal to ensure that the old Port Harcourt Refinery starts production immediately.
“You could go outside today and you could see queues everywhere in FCT and in some other neighbouring states. But we certainly believe that if our refineries were working optimally, today we would continue to have enough supply”.