Port Harcourt Refinery Halts Operations; Loading Bay Remains Empty
The Port Harcourt Refinery, which recently resumed operations after years of inactivity, has once again halted production, with its loading bay lying dormant. The development comes just days after the Nigerian National Petroleum Company Limited (NNPCL) announced the much-anticipated commencement of crude oil processing at the refinery.
A visit to the facility on Friday revealed that no operational activities were ongoing, contradicting earlier claims of resumed production. Workers on-site disclosed that the refinery was undergoing calibration, a process expected to extend into the coming week. This revelation has sparked concerns about the refinery’s readiness and the broader implications for Nigeria’s refining capacity.
A Troubled History of Delays
The Port Harcourt Refinery, located in Rivers State, has long been plagued by delays, missed deadlines, and operational inefficiencies. Its new plant, known as Area 5, was inaugurated recently by NNPCL’s Group Chief Executive Officer, Mele Kyari. During the event, Kyari announced that the facility was loading 200 trucks of petrol daily, raising hopes for a significant improvement in Nigeria’s refining capacity.
However, subsequent investigations revealed discrepancies in these claims. Reports indicated that the trucks were not carrying newly refined petrol but rather old stock stored in the refinery’s tanks since its shutdown in 2015/2016.
Loading Old Stock Instead of New Production
At the Area 5 terminal, no active loading operations were observed during a recent inspection. A refinery worker, speaking anonymously, explained that the products being loaded earlier were “dead stock,” consisting of leftover petrol, kerosene, and diesel stored before the refinery’s closure.
“Before the refinery was shut down between 2015 and 2016, we had dead stock left in the tanks, including some Premium Motor Spirit (PMS), DPK (kerosene), and AGO (diesel),” the worker revealed.
These products had been evacuated from the tanks during the rehabilitation process and were temporarily stored for future use. However, many of the old stocks, particularly the refined petrol, were classified as “off-spec,” requiring separation from water to meet commercial standards.
“For DPK, it exists in large quantities but has not yet been moved from the storage tanks to the market,” the worker explained. “The product being loaded during the inauguration event was dead stock, not new production. After this stock is depleted, the tanks will need cleaning and refurbishment before new products can be processed and stored.”
Challenges with Outdated Systems
The worker also criticized the refinery’s reliance on outdated and manual systems, which he argued are incompatible with modern digital pumping equipment.
“What they are trying to do at the Port Harcourt Refinery is manual, which cannot match the efficiency of new digital pumps,” he said. “Most of the pumps used during the inauguration event were merely refurbished.”
The technical challenges became evident during Kyari’s visit, as only five out of seven prepared trucks were successfully loaded with petrol. This highlighted the refinery’s operational limitations and raised doubts about its ability to meet its ambitious production targets.
Stakeholder Reactions and Future Prospects
Despite the setbacks, some stakeholders remain optimistic about the refinery’s potential. During the inauguration event, the Chairman of the Independent Petroleum Marketers Association of Nigeria, Tanker Ikpaki, expressed hope that more trucks would soon arrive to load products.
However, this optimism is tempered by the reality of Nigeria’s refining sector, which has struggled for decades to meet domestic demand for refined petroleum products. The continued reliance on imported fuels, combined with the Port Harcourt Refinery’s intermittent operations, underscores the urgent need for comprehensive reforms.
Economic and Operational Implications
The refinery’s inability to sustain operations has far-reaching implications for Nigeria’s energy sector. The halted operations disrupt the supply chain and undermine efforts to reduce the country’s dependence on imported fuel. Additionally, the inconsistencies in production further erode public confidence in the government’s rehabilitation initiatives.
Energy experts have called for greater transparency and accountability in managing the refinery. They argue that privatizing state-owned refineries could attract the expertise and investment needed to modernize and sustain operations.
Conclusion
The recent halt in operations at the Port Harcourt Refinery serves as a stark reminder of the challenges facing Nigeria’s refining industry. While the government and NNPCL have invested heavily in rehabilitation efforts, the facility’s ongoing technical issues and reliance on outdated systems suggest that more work is needed to achieve full operational capacity.
As Nigerians continue to grapple with high fuel prices and limited domestic refining capacity, the focus must shift toward sustainable solutions. Addressing the root causes of inefficiencies, modernizing infrastructure, and ensuring transparency in rehabilitation projects will be critical to revitalizing Nigeria’s refining sector.
For now, the sight of an empty loading bay at the Port Harcourt Refinery symbolizes a missed opportunity for progress in Nigeria’s quest for energy self-sufficiency.