Uncertainty lingers over December deadline for Port Harcourt Refinery

BY EMEKA EJERE

Less than one month to the deadline given by authorities of the Federal Government for the takeoff of the Port Harcourt Refinery, reactions coming from Nigerians across sectors are dominated by misgivings driven by several of such promises that had failed in the past.

On August 25, the Minister of State for Petroleum (Oil) Heineken Lokpobiri, announced that the Port Harcourt Refinery would be ready for operation by December 2023. The minister gave the assurance during an inspection tour of the project site in Port Harcourt.

Just few days ago, the Group Chief Executive Officer (GCEO), of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, while meeting with the Speaker of the House of Representatives, Tajudeen Abbas, confirmed that the state-run refineries was seriously being rehabilitated and would take off in December 2023, adding that by December 2024, Nigeria would stop petrol imports.

He said: “I can confirm to you that by the end of December this year, we will start the Port Harcourt Refinery; early in the first quarter of 2024, we will start the Warri Refinery and by the end of 2024, the Kaduna Refinery will come into operation.

“This is the commitment we are giving today, and you can hold us accountable for this. In 2024, many of the initiatives including the rehabilitation of our refineries and also the efforts of small-scale refineries, and the upcoming Dangote Refinery, will make Nigeria a net exporter of petroleum products in 2024. We will no longer be talking about fuel importation by the end of 2024. I am very optimistic that this will crystallize.”

Even more recently, President Bola Tinubu, again, hinted that some local refineries would soon begin production of petroleum products. The President had shortly after assuming office, declared that the Port Harcourt Refinery would resume operation by December 2023.

Tinubu, who dropped the hint at the 11th convocation ceremony of Michael Okpara University of Agriculture Umudike (MOUAU), said the current exorbitant price of fuel would crash when the local refineries come on stream.

“Very soon, some of our local refineries will start production and the current exorbitant prices of fuel energy will be greatly reduced,” the President, who was represented by the Executive Secretary, Agricultural Research Council of Nigeria, Professor Garba Sharubutu, said.

Facts about the plants

Findings revealed that the Area 5 (old refinery) has the capacity to refine 60,000 barrels per day. It comprises a CDU, a CRU, and a liquefied petroleum gas (LPG) facility.

The refinery complex uses four turbo-generators of 14MW an hour of electricity generation capacity each and four boilers of 120 tonnes (t) an hour of steam generation capacity each. The expected products include petrol, diesel, LPG, aviation and domestic kerosene, low pour fuel oil (LPFO), and heavy pour fuel oil (HPFO).

The new Port Harcourt refinery, on the other hand, has the capacity to produce 150,000 barrels per day bringing the total capacity of 210, 000 per day when combined with the old refinery.

It comprises a crude distillation unit (CDU), a vacuum distillation unit (VDU), a naphtha hydrotreating unit (NHTU), a catalytic reforming unit (CRU), a continuous catalyst regeneration (CCR) unit, a kerosene hydrotreating unit, a fluid catalytic cracking (FCC) unit, and a dimersol unit to convert propylene into a gasoline blend stock. The plant also houses a butamer isomerisation unit, an alkylation unit, apart from hydrogen purification, fuel gas vaporiser, sour water and caustic treatment units.

Judging from past

Despite all the assurances, interactions with those following developments in refinery rehabilitations in Nigeria revealed that until the facility commences operation on the said date, it is very difficult to convince Nigerians that it is not going to be business as usual.

In an interview with our correspondent, an Economist and Lagos lawyer, Barr. Fred Nzeako, wondered why Nigerians government should be believed on the December deadline, when Nigerians are already fade up with failed promises under successive administrations.

“It’s not believable. This will be about the third time they’re giving such deadline”, Nzeako recalled.

“They gave two such deadlines under Ibe Kachikwu, as Minister of State (Petroleum Resources); they gave one under Timipre Sylva, and now they’re giving another one. This should be the fourth or even the fifth one.

“So what is the ground for believing them this time around? What is the basis for believing them? And the GCEO of NNPCL does not have a history of saying the truth.’’

Also in a chat with our correspondent, a public affairs analyst, Mr. Olusola Ganiyu, said he would rather wait and see the magic government is going to perform for the refinery to start working.

““I hope government will live up to their word this time. This is December 1, let’s keep our fingers crossed and see the magic that’s going to happen. We’re watching.”

However, no sooner had the threat been made than President Tinubu re-appointed Kyari as the Group Chief Executive Officer of NNPCL, leaving analysts wondering what the true position is.