Port-Harcourt refinery shuts down again after $1.5b rehabilitation
The Port-Harcourt Refinery has once again halted operations less than a month after resuming production following a $1.5 billion rehabilitation project.
This latest shutdown occurred on December 19, 2024 when the lifting of Premium Motor Spirit (PMS) or petrol was reportedly stopped. In late November the refinery had already ceased operations, with only its Crude Distillation Unit (CDU) functioning.
While the CDU can produce naphtha, kerosene & diesel it lacks the capacity to produce the components necessary for PMS, according to sources within the facility.
According to Sahara Reporters, despite claims by the Nigerian National Petroleum Company Limited (NNPCL) that the refinery was operational, only the outdated sections were actively blending “Crack C5 with naphtha” to produce PMS.
This practice raised concerns among staff about potential negative effects on vehicles. By December 13, loading operations at the refinery’s 18-arm loading bay had ceased, leaving tankers stranded & the depot unusually quiet.
Sources noted that while NNPCL claimed 200 trucks were being loaded, fewer than 10 actually transported petrol that day.
Following the departure of NNPCL CEO Mele Kyari to Abuja, operations reportedly came to a standstill. The refinery, which has a capacity of 60,000 barrels per day, was inaugurated with great optimism on November 26, 2024, marking a new chapter in Nigeria’s energy production.
However, the recent shutdown has sparked widespread concerns about the refinery’s operational viability and accountability regarding the substantial rehabilitation investment.
Stakeholders have suggested that the petrol distributed during the brief reopening was likely old stock from storage tanks.
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria clarified that the operational slowdown was due to meter calibration and the de-watering of old stock in preparation for newly refined products.
