Dangote Refinery has inched further towards the commencement of production of refined petroleum products with the receipt of an additional one million barrels of bonny light crude from the Nigerian National Petroleum Company Limited (NNPCL).
Coming after the refinery received one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO) about a week ago Managing Director of Dangote Ports Operations, Akin Omole told reporters at the Dangote Quay, Ibeju-Lekki, Lagos that the facility was expecting more supplies before the end of this year.
Designed for 100 per cent Nigerian crude, the 650,000 bpd refinery, which holds much of the hope for the nation’s unsteady energy industry, also has the capacity to process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil.
The feat is coming on the heels of the Federal Government reassurances on Thursday to Nigerians that the production of petrol and Liquified Natural Gas(LNG) would resume at the Port Harcourt Refinery after Christmas break.
The government which based its assurance on the optimism over the success of the ‘mechanical completion and flare start-up’ of Phase one of the 210,000 barrels per day (bpd) refinery by the Nigerian National Petroleum Company Limited(NNPCL), also said the completion of similar facilities in Warri and Kaduna, was being envisaged in due course.
Minister of State for Petroleum Resources(Oil) Heineken Lokpobiri; Minister of State Petroleum Resources(Gas), Ekperikpe Ekpo; NNPCL Group Chief Executive Officer, Mele Kyari, NNPCL Board Chairman Pius Akinyelure; and Port Harcourt Refinery Managing Director Ibrahim Onoja, made this known during a media tour of the refinery in Eleme, Rivers State, said to be undergoing test-run currently.
Lokpobiri who told reporters that with the Phase One now ready, efforts would be geared towards the completion of the Phase Two of the facility in the last quarter of next year, added: “The mechanical part is completed and this is the beginning of the completion of not just this Port Harcourt Refinery phase one and two, but the one for Warri, and then the one in Kaduna, so that we would be able to benefit from this massive investment that the country has made.”
Ekpo, echoing the optimism, said with the commencement of petrol production after Christmas, there will be more LPG(cooking gas) supply to the Nigerian market, adding: “The good news equally to LPG users that as the refinery commences after Christmas, we will have sufficient supply of LPG which will reduce the import at that level.”
Kyari, while stressing that the refinery pumps had been rehabilitated to allow the circulation of crude within the facility, said: “It is just to thank the team for doing great work and for keeping the promise we made to over 200 million Nigerians, and we know that this is a promise we can keep.
“We have a competent contractor and subcontractors. Our staff members are extremely determined to deliver on this project, and today, it is a promise fulfilled. Phase Two will be completed in the last quarter of 2024. We know all the scepticism that is in the public space but today has shown that we can fulfill commitments. NNPC is here to deliver value and we will get things done going forward. We have done a great deal of work to get the refinery to work. Our team has been working 24 hours a day and we are happy with the results we have today.”
Akinyelure, who described the completion of Phase one as “historic,” added: “I am here this morning to witness this historic ceremony on the mechanical completion of the Port Harcourt Refinery. We are proud of the staff and entire management of the refinery. We will be at the highest level of production, and if possible export part of our production.
“Doubts had been expressed by several Nigerians about the ability of NNPCL to make this facility available to support the distribution of fuel in the country. But today, I see them happy.”
Onoja, on his part said the mechanical completion of the refinery was historic in that it would help buoy the nation’s economy, adding: “Today is a very happy day for me. I was part of the story from the beginning. We had a Presidential directive to get the refinery working. The NNPCL Group CEO asked us to give him an unassailable process that will not fail.
“We set governance in process and got the best team to do the work. We created a transparent project. We have 118 pumps in this first phase, the columns were filled and it will produce 60,000 barrels per day. It will create jobs and earn forex for the country.”
The Future Nigeria Movement (FNM), which welcomed, paid tribute to President Tinubu as a promise keeper, with Livingstone Wechie, its leader, saying the turnaround was hitherto that the President had put an end to the practice of some agents of the Federal Government using turnaround maintenance as a conduit pipe for siphoning public funds.
The Port Harcourt refinery comprises two units, with the old plant having a refining capacity of 60,000 bpd and the new plant 150,000 bpd, was shut down in March 2019 for the first phase of repair works after the government secured the services of Italy’s Maire Tecnimont to handle the scoping of the complex, with oil major Eni appointed technical adviser.
In 2021, NNPC, said repairs had started on the refinery, which had over the years performed below optimal levels, resulting in the importation of petroleum products for domestic use for many years to cover for the gap in the refinery’s output, after the Federal Executive Council approved $1.5bn for the project.