Re-streaming of Port Harcourt Refinery Marks a New Era for Nigeria

The resumption of operations at the Port Harcourt Refinery on November 26, 2024, marks a historic milestone for Nigeria’s economy and energy sector, as reported by several news agencies. This achievement, led by the Nigerian National Petroleum Company Limited (NNPCL) under the leadership of Group Managing Director Mallam Mele Kyari, underscores a renewed commitment to reviving Nigeria’s refining capabilities. Kyari's leadership has been instrumental in steering the energy sector towards growth and sustainability across Africa. The event also reflects President Bola Ahmed Tinubu's dedication to fulfilling his administration's agenda of revitalizing Nigeria's refineries and reducing reliance on imported petroleum products.

After years of dormancy since its shutdown in March 2019, the Port Harcourt Refinery’s re-streaming has been a testament to the NNPCL’s determination. The facility, which includes two units with a combined capacity of 210,000 barrels per day (bpd), underwent extensive rehabilitation led by Italy’s Maire Tecnimont, with Eni providing technical advisory. Following the Federal Executive Council's approval of $1.5 billion for the project in 2021, mechanical upgrades and operational tests were successfully completed in December 2023, leading to the refinery's official reactivation.

This achievement is expected to significantly enhance Nigeria’s domestic refining capacity, reducing the country’s dependence on imported fuels like petrol, diesel, and kerosene. By resuming local production, the refinery is set to save billions in foreign exchange, lower the cost of fuel imports, and create thousands of jobs across the supply chain, from transportation to distribution. Stakeholders, including industry expert Dr. Ayodele Oni, view this development as a pivotal step toward addressing Nigeria’s fuel supply challenges and boosting economic sustainability.

However, the road to full operational capacity has not been without challenges. Persistent issues such as crude oil supply disruptions, infrastructure inadequacies, and technical glitches pose risks to consistent refinery performance. Years of underinvestment and prolonged downtime have raised concerns about the facility’s ability to meet domestic fuel needs reliably. Despite these setbacks, the refinery's management remains committed to addressing these challenges promptly.

The Port Harcourt Refinery’s rehabilitation comes after years of failed attempts to revive Nigeria’s four refineries in Port Harcourt, Warri, and Kaduna. Previous administrations spent over N11 trillion between 2010 and 2023 on refinery rehabilitation with little progress. The successful re-streaming of the Port Harcourt facility signifies a turning point, delivering on President Tinubu’s promise to make it operational by December 2024.

As Nigeria takes this crucial step toward energy independence, the refinery's success could serve as a blueprint for restoring other moribund refineries, ensuring a sustainable future for the nation’s energy sector.