Port-Harcourt Refinery in a Test-Run Phase- OGM News: The Nigerian National Petroleum Corporation Limited (NNPCL) has initiated the supply of crude oil for the test-running of the Port Harcourt Refining Company Limited. Oil marketers have confirmed this development, emphasizing that the refinery will produce Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and other products for 12 states, including Abia, Rivers, Akwa Ibom, and Delta. The ongoing test-running is expected to conclude soon, with commercial production of refined products set to commence shortly.
In the realm of energy independence, the commencement of crude oil supply marks a significant milestone for Nigeria. The Port Harcourt Refinery’s role in providing essential petroleum products to multiple states highlights the potential positive impact on domestic consumption and foreign exchange reserves.
Experts and Downstream Operators Assess Implications on Product Costs
Experts and downstream operators have weighed in on the potential impact of the Port Harcourt Refinery’s test-running on product costs. While acknowledging that the cost of refined products may decrease when both the Port Harcourt and Dangote refineries start full-scale production, they caution against expecting a massive price crash. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, emphasizes that despite the expected reduction in costs, stability in the refinery’s operations is crucial to achieving sustainable benefits.
As the nation anticipates reduced costs of refined products, experts emphasize the need for prudent management and continued support for the refinery’s operations to ensure a stable and consistent supply.
Port-Harcourt Refinery Testing Phase: Progress Update and Crude Oil Reception
Billy Gillis-Harry, leading a delegation of marketers to the Port Harcourt refinery, confirmed on Sunday that the facility has begun receiving crude oil. The ongoing testing phase is essential for assessing the operational status of the refinery’s components. Gillis-Harry stresses the significance of stability in the testing phase, emphasizing the refinery management’s need for support to ensure successful commercial production.
With the confirmation of crude oil reception, the testing phase progresses, signifying a crucial step towards full-scale production. Stakeholders underscore the importance of stable operations to realize the refinery’s potential benefits.
Port-Harcourt Refinery Positive Outlook on 60,000bpd Crude Production
Gillis-Harry expressed optimism about the 60,000 barrels per day (bpd) crude production capacity of the Port Harcourt Refinery. Even if operating at 50% capacity, the refinery can significantly contribute to domestic consumption, serving approximately 12 states. The positive outlook emphasizes the potential impact on the nation’s foreign exchange reserves and the steady availability of petroleum products.
Amid challenges in the energy sector, stakeholders encourage Nigerians to embrace the positive outlook on the refinery’s crude production capacity, emphasizing its substantial contribution to domestic needs and economic stability.
Daily Production Potential and Foreign Exchange Implications
Gillis-Harry highlights the considerable volume of daily production from the 60,000bpd refined crude, estimating its ability to serve multiple states and emphasizing the positive impact on foreign exchange reserves. The daily loading of tankers is expected to address the nation’s petroleum product needs and contribute significantly to economic stability.
The refinery‘s daily production potential is poised to address the country’s petroleum product demands and positively impact foreign exchange reserves, reinforcing its role as a crucial economic asset.
Port-Harcourt Refinery Second Phase and Future Prospects
NNPCL reveals that the second phase of the Port Harcourt Refinery, set to be completed in the fourth quarter of 2024, will increase crude refining capacity to 150,000bpd. This development holds promising prospects for Nigeria’s energy sector, providing a glimpse into the nation’s trajectory towards enhanced self-sufficiency in petroleum product production.
Anticipation builds for the refinery’s second phase completion, signaling a promising future for increased crude refining capacity and a more substantial contribution to Nigeria’s energy security.
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