Port Harcourt Refinery Shuts Down After Multi-billion Dollar Rehabilitation (see why)

Barely a month after the much-publicised reopening of the Port Harcourt Refinery, reports indicate that operations have once again ceased.

On December 19, 2024, journalists visiting the facility noted that the 18-arm loading bay, which had been expected to be a hub of activity, was completely idle.

Only a handful of trucks were observed parked within the refinery yard, with drivers waiting for information about when petrol lifting would resume.

Background of the Refinery’s Reopening

The Port Harcourt Refinery was officially reopened on November 26, 2024, by Mele Kyari, CEO of the Nigerian National Petroleum Corporation Limited (NNPCL).

The rehabilitation of the refinery, which boasts a production capacity of 60,000 barrels per day, followed a $1.5 billion approval in March 2021.

The inauguration generated significant excitement, as it was anticipated to enhance local fuel supply and reduce Nigeria’s dependence on imported petroleum products.

However, scepticism arose almost immediately. While the inauguration claimed that around 200 trucks lifted products from the refinery, reports suggest fewer than 10 trucks were loaded, raising questions about the refinery’s actual functionality. Allegations surfaced that the petrol lifted during the ceremony may have been old stock from storage tanks rather than newly refined products.

Current Situation

Since December 13, 2024, petrol lifting at the refinery has reportedly stopped. Journalists visiting the site observed minimal activity, with drivers idling in their trucks and security personnel stationed at various points.

One driver disclosed that lifting might resume the following Monday, though he expressed doubts about the reliability of the information.

Truck drivers and petroleum marketers expressed frustration over the lack of communication and transparency regarding the refinery’s operations. Some drivers reported waiting for weeks without any progress.

A marketer, Mr. Dappa Jubobaraye, alleged that the reopening of the refinery was merely a spectacle to create the illusion of functionality.

Challenges Highlighted

  • Operational Limitations: Out of the refinery’s 18 loading arms, only three are reportedly functional, with significant leakages. This has severely constrained the facility’s ability to load products.
  • Uncalibrated Equipment: The loading meters were allegedly not calibrated before operations began, further complicating the refinery’s operations.
  • Limited Accessibility: Independent marketers claim they have been unable to purchase tickets or load products due to unresolved pricing issues by the NNPC.
  • Lack of Product Diversity: Only Premium Motor Spirit (PMS) has been lifted, while Diesel (AGO) and Kerosene (DPK) remain unavailable.

Stakeholder Reactions

Drivers, marketers, and other stakeholders have expressed deep concerns about the inefficiencies and lack of commitment to fully operationalise the refinery. They argue that the current state undermines public trust and fails to address the pressing need for domestic refining capacity.

Jubobaraye criticised the situation, saying, “This is just a charade to deceive Nigerians into believing the refinery is functional. The reality is far from what was presented during the inauguration.”

NNPCL’s Response Pending

As of the time of reporting, the Nigerian National Petroleum Corporation has not issued a statement regarding the recent shutdown or the challenges facing the Port Harcourt Refinery. Stakeholders continue to await a clear plan for resolving the issues and restoring consistent operations.

This development further underscores the ongoing struggles of Nigeria’s downstream petroleum sector, despite significant investments in refinery rehabilitation.