Financial Energy Review
150,000 capacity New Port Refinery to come on stream mid 2025 -NNPCL
Stakeholders have expressed excitement as the Port Harcourt Refinery commenced operations urging the management of Nigerian National Petroleum Company Limited (NNPCL) to ensure that its operations are sustained and avoid hitches that could result in the breakdown of the refinery again.
Clement Isong, chief executive officer of the Major Energies Marketers Association of Nigeria (MEMAN) while expressing the excitement of the association, however, stated that two things are critical to the success of this very important development.
These, he said, are the diversification of supply as well as price competition. These he explained guarantee the availability, accessibility, and affordability of products, which is what the association has been advocating.
On how prepared some members of the association are prepared to embrace the latest development in the sector, he said, it is about terms and conditions” adding that some of it s members have been in operation for over 100 years and have developed certain reputations over which has enable to earn credibility among their customers and financiers.
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“ They have advantageous terms and conditions which have led to banks giving them credit facilities. Bulk buyers have access to preferential acquisition cost, in other words, these bulk buyers get discounts”
“It is about terms and conditions, and not just about prices. You need to know your market and design your strategy around it “
He said completion always serves consumers better in terms of quality service, quality of products, and price.
In his reaction, the managing director and chief executive of 11Plc, Mr.Tunji Oyebanji, said, it is good. It is better to have the refinery rehabilitated, even if it has been 20 years since the refinery was produced last.
He said it is hoped it will continue to work so that the nation can enjoy it service at all times.
The 11plc boss advised that the NNPCL management should put measures in place that will ensure that the refinery is not short-lived.
The government can also find an alternative ownership for it. An NLNG model would be better, he said.
In the same vein, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has sent a congratulatory message to the Group Chief Executive Officer, Mr. Mele Kyari, and the management of the Nigerian National Petroleum Company Limited (NNPCL) on the successful re-streaming of the Port Harcourt Refinery.
“ They have advantageous terms and conditions which have led to banks giving them credit facilities. Bulk buyers have access to preferential acquisition cost, in other words, these bulk buyers get discounts”
“It is about terms and conditions, and not just about prices. You need to know your market and design your strategy around it “
He said completion always serves consumers better in terms of quality service, quality of products, and price.
In his reaction, the managing director and chief executive of 11Plc, Mr.Tunji Oyebanji, said, it is good. It is better to have the refinery rehabilitated, even if it has been 20 years since the refinery was produced last.
He said it is hoped it will continue to work so that the nation can enjoy it service at all times.
The 11plc boss advised that the NNPCL management should put measures in place that will ensure that the refinery is not short-lived.
The government can also find an alternative ownership for it. An NLNG model would be better, he said.
In the same vein, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has sent a congratulatory message to the Group Chief Executive Officer, Mr. Mele Kyari, and the management of the Nigerian National Petroleum Company Limited (NNPCL) on the successful re-streaming of the Port Harcourt Refinery.
The statement concluded by congratulating Kyari and his team on the transformative achievement, with NUPENG reaffirming its commitment to being a steadfast partner in the collective journey towards achieving a vibrant, inclusive, and sustainable oil and gas sector that uplifts every Nigerian worker and citizen.
New Port Harcourt Refinery Complex
Meanwhile, the 150,000 barrels per day new Port Harcourt Refining Company (PHRC) complex is set to come on stream by mid-2025.
This is according to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari who spoke to a select group of journalists at the facility in Rivers State on Tuesday.
Kyari also noted that the old refinery complex which started full operations can feed 200,000 trucks with various products per day.
He said the major challenge that plagued the timely resuscitation of the complex was ensuring a complete overhaul of the machines which are brand new.
The NNPCL chief was accompanied by the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Ahmed Farouk.
On the issue of the bad state of the road to the refinery which will cause serious traffic when trucks begin to ply it regularly, Kyari revealed that the Eleme Road has now been included in the tax credit scheme where the NNPC Limited has repaired roads across the country in exchange for some tax waivers.
.In 2021, the Federal Government approved $1.5 billion (1.2 billion euros) to repair the plant, one of the country’s biggest refineries which was shut down two years before that.
Despite being one of the largest producers of crude oil, Nigeria has over the years relied on the importation of petroleum products owing to a lack of local refining capacity. President Bola Tinubu in 2023 announced an end to the subsidy regime, leading to a hike in the cost of petrol.
