Port Harcourt Refinery Company Limited had received crude oil from the Nigerian National Petroleum Company Limited, NNPCL, ahead of its test-run a week after rehabilitation.
The NNPCL, in an announcement on Monday said test-running of the Refinery would be completed shortly as commercial production of refined products will start immediately after a satisfied test.
Oil marketers confirmed that the plant would supply refined Premium Motor Spirit, popularly called petrol, Automotive Gas Oil, otherwise known as diesel, as well as other products to 12 states including Abia, Rivers, Akwa Ibom, and Delta, among others.
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This came as experts and downstream operators stated that though the cost of refined products would reduce once the Port Harcourt and Dangote refineries start pumping out products, it would not lead to a massive price crash.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, who led other marketers to the Port Harcourt refinery, confirmed on Sunday that the plant had started receiving crude oil.
He said testing was ongoing at the facility and noted that the 60,000bpd crude oil production was enough to serve about 12 states in Nigeria.
“I can confirm that they (the refinery) are now receiving crude because I have been in Port Harcourt and was at the refinery with some of our members. The testing is going on, and it is going to take some time because they would have to ascertain the parts of the refinery that are working and those that are not working yet.
“And all that must be stable, which is why the management of the refinery must be supported to ensure that they deliver and start the production of products for commercial purposes. However, I can confirm to you that what they (NNPCL) told you is correct,” Gillis-Harry stated.
“Nigerians should be cheerful about the 60,000 barrels per day of crude that is to be refined by the plant. Even if it is producing at 50 per cent capacity, it will produce what will consistently augment and make sure petroleum products are available for domestic consumption.
“And this will help curb the depletion of our foreign exchange. The volume of petrol and other products that will come out of 60,000bpd refined crude is not small, it is a lot. In fact, it can serve about 12 states. It is a considerable volume that can serve about 12 states.
“It can serve Rivers, Bayelsa, Abia, Imo, Delta, Edo, Cross River, Akwa Ibom, and even beyond, and this is a conservative estimate. Also don’t forget that it is going to be produced daily. So if every day we are loading about 50 tankers of 33,000 litres each, that is going to serve a lot of purposes.”
The NNPCL, which is the manager of the refinery, had also revealed that the second phase of the facility would be completed in the fourth quarter of 2024 and would lead to the refining of 150,000bpd crude by the facility.
Oil marketers and experts stated that the commencement of operations of the Port Harcourt and Dangote refineries would cause a reduction in the cost of refined products, but would not warrant a huge crash in their costs.
The Dangote refinery is projected to start delivering refined diesel and aviation fuel from this month (January), as Nigerians express optimism that the cost of refined products would drop.
The National Secretary of the Independent Petroleum Marketers Association of Nigeria, Chief John Kekeocha, said the cost of refined petroleum products would drop once the refineries come on stream, but this may not happen immediately.
“If the refineries should start producing as they promised, then we should be hopeful of price reduction. However, this may not happen immediately and it will not mean that the cost of petroleum products would crash significantly.
“But if what they are saying now is going to come to reality, absolutely it is going to affect the prices of refined products downward. This is because the crude will be sourced here and it will be cheaper. Also the cost of importing refined products will be eliminated.
“Therefore if the Port Harcourt refinery and that of Dangote are going to start production, sincerely speaking, the cost of refined products are not going to be as costly as what we are buying today,” Kekeocha stated.
On his part, the PETROAN stated corroborated the position of his counterpart in IPMAN, but noted that it would not be a massive crash in price.
“We expect a reduction in the prices of refined products, not a massive crash in their costs. But certainly, there is a chance of a reduction in the cost of refined petroleum products once the refineries start supplying the products.
“This is because we will no longer pay import charges and all other fees that we pay in dollars. So that should give some relief. But by how much, is what we cannot tell until the refineries start producing,” he stated.
Also speaking, the National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, said the commencement of operations of the refineries would impact the cost of products positively.
“We are optimistic to see the commencement of refined products from the facilities because it will impact on the cost of products positively. Whether the drop in price is much or not, the fact is that Nigeria has commenced local production.
“But the truth is that there will be a reduction in the prices of refined products, though this may not mean that the cost of products would experience a massive crash,” he stated.
