After Dangote, Another Nigerian Refinery Postpones Petrol Production, New Date Emerges
- The Nigerian Petroleum Company Limited (NNPCL) has again failed to commence production at the Port Harcourt Refinery
- The company did not give any new date for the delay, but reports say the facility faces technical challenges
- The NNPC Group CEO, Mele Kyari, had assured Nigerians that the refinery would commence operations by August
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
For the sixth time, the Nigerian National Petroleum Company Limited (NNPCL) has shelved the date for the much-awaited launch of the Port Harcourt Refinery.
The delay raises concerns about Nigeria’s energy infrastructure and the reliability of refining capabilities.
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NNPC fails to disclose new date
The refinery was initially slated to commence production in 2021 but has faced several delays, which have been attributed to various technical, financial and logistical issues.
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The latest delay adds to the anger among industry watchers and the Nigerian people who expect to see the refinery function and reduce the country’s dependence on imported petroleum products.
According to reports, the NNPC has yet to give any specific launch date for the refinery, but reports say the ongoing repairs and upgrades are taking longer to complete.
In July, the NNPC’s group CEO, Mele Kyari, assured Nigerians that the facility would be operational by early August.
The NNPC boss had said in 2019 that the company would complete all four refineries before the conclusion of ex-President Muhammadu Buhari’s tenure.
Kyari claimed at a July Senate hearing that Nigeria will become a net exporter of petroleum products by the end of 2024.
BusinessDay reports that NNPC’s spokesman, Olufemi Soneye, disclosed that the company is on course to get the refinery working on schedule.
Experts are worried that the refinery has yet to commence operations as August nears an end.
NNPC says the refinery would process 60,000 barrels daily
During the Christmas break last year, the NNPC disclosed that the plant would begin refining 60,000 barrels of crude oil daily.
Kyari assured Nigerians in January this year that the facility was undergoing testing and would be fully operational by the end of the month, according to Punch.
The facility is expected to have a refining capacity of 210,000 barrels daily, boosting domestic fuel production and contributing to Nigeria’s economic growth.
8 refineries are scheduled to begin production in August
A previous report by Legit.ng earlier disclosed that about eight refineries in Nigeria were expected to commence operations in Nigeria in August 2024.
Data from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) shows that about eight Nigerian refineries are expected to commence operations in August 2024.
The refineries’ combined capacity is estimated at 864,500 barrels per day, significantly demanding the NUPRC for crude oil.
The list of refineries set to begin production
Some refineries, including the Port Harcourt refinery, Waltersmith Refinery, the Dangote Refinery, and others, demand about 597,700 barrels of crude oil from the oil regulator.
The refiners increased their domestic crude requirements for the second half of the year to 597,700 barrels per day from 483,000 barrels in the first half of 2024 amid tight supply.
Reuters reports that the NUPRC said on Friday, August 9, 2204, that it could only secure 177,777 barrels from oil producers in the first six months of the year, far below the refineries' requirements.
Dangote refinery sets new date for petrol production
Legit.ng earlier reported that the Dangote Refinery had delayed its petrol production date again due to crude oil supply issues.
The refinery reportedly faced significant operational challenges, including sourcing crude oil for production, leading to imports from Brazil and the US.
The 650,000 bpd-capacity refinery also battled to secure crude from the Nigerian National Petroleum Company Limited (NNPCL), which has engaged regulatory authorities over inadequate crude supply.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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