Port Harcourt Refinery Shuts Down Again: A $1.5bn Rehabilitation Effort in Question

Port Harcourt Refinery Shuts Down Again: A $1.5bn Rehabilitation Effort in Question

Less than a month after the Port Harcourt Refining Company (PHRC) resumed production, the facility has stopped working again, raising concerns about the effectiveness of the $1.5bn rehabilitation effort. The refinery, which was inaugurated by the Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, on November 26, 2024, had shown promising signs of production, but it appears that the progress was short-lived.

A visit to the refinery on Thursday, December 19, 2024, revealed that the lifting of Premium Motor Spirit (PMS) had stopped, and the loading bay was empty. The depot, which is usually bustling with activity, was deserted, with only a handful of security personnel and truck drivers present. The drivers, who were seen sleeping in their trucks, expressed uncertainty about when production would resume, with one of them saying that they had been told that loading would resume on Monday.

The shutdown of the refinery has raised questions about the state of the facility and the effectiveness of the rehabilitation effort. The $1.5bn spent on the rehabilitation of the refinery was meant to increase its production capacity to 60,000 barrels per day, but it appears that the facility is still struggling to achieve this goal.

The Petroleum Products Retail Outlets Owners Association of Nigeria had earlier attributed the shutdown of the refinery to the calibration of meters at the loading bay and the de-watering of old stock, but it seems that the issues are more complex. The Managing Director of the refinery, Ibrahim Onoja, had stated that the plant was running and that products were being trucked out, but the latest shutdown has cast doubt on these claims.

A petroleum product marketer, Mr. Dappa Jubobaraye, has criticized the state of the refineries in the country, alleging that the Port Harcourt refinery is not working as claimed. He stated that since the inauguration of the refinery, no production had taken place, and that the loading of products was just a show. He also alleged that the loading meter was not calibrated, and that only three out of the 18 loading arms at the bay were working, with leakages.

The shutdown of the Port Harcourt refinery has significant implications for the country's fuel supply and the economy as a whole. The refinery is one of the largest in the country, and its shutdown will lead to a shortage of fuel, which will have a ripple effect on the economy. The government and the NNPCL must take urgent steps to address the issues at the refinery and ensure that it is working at optimal capacity to meet the country's fuel needs.

The $1.5bn spent on the rehabilitation of the refinery is a significant investment, and it is imperative that the facility is working efficiently to justify this expenditure. The government and the NNPCL must be transparent about the issues at the refinery and provide regular updates on the progress being made to address them. The country cannot afford to have its refineries shut down repeatedly, and it is time for the government to take decisive action to ensure that the refineries are working optimally to meet the country's fuel needs.