Port Harcourt Refinery: A Legacy of Broken Promises - NNPCL's Blending Plant Deception

Port Harcourt Refinery: A Legacy of Broken Promises - NNPCL's Blending Plant Deception

The Nigerian National Petroleum Corporation Limited's (NNPCL) recent announcement of the Port Harcourt refinery's activation has sparked controversy, with a coalition of civil society organisations (CSOs) questioning the true nature of the project. The Coalition for Accountability and Transparency in the Energy Sector (CATES) argues that the refurbished facility is not the fully functional refinery Nigerians paid for, but rather a blending plant.

The Port Harcourt refinery, located in the oil-rich Niger Delta region, has been operational since 1965, with a combined crude processing capacity of 210,000 barrels per day. Despite its potential, the refinery has consistently operated below capacity, leading to Nigeria's reliance on imported refined petroleum products. In 2021, the Nigerian government approved $1.5 billion for the refinery's rehabilitation, with Tecnimont SPA awarded the contract. The project aimed to restore the refinery to 90% of its design capacity by the end of 2022.

However, the coalition's concerns suggest that the rehabilitation efforts may have strayed from their original purpose. The NNPCL's decision to convert the heritage refinery into a blending plant, despite warnings from stakeholders about the environmental risks, has raised eyebrows. The coalition's spokesperson, Dr. Linus Ikwur, likened the situation to "what I ordered vs what I got," emphasizing that Nigerians funded a refinery, not a blending plant.

The refinery complex consists of an old refinery (60,000 bpd) and a new refinery (150,000 bpd). Despite significant investments, the facility's operationalization has been marred by controversy. Sources close to the matter revealed that only the diesel production unit is operational, while the petrol production unit remains dormant. "The part that produces PMS (petrol) has not been operational," the source disclosed to SaharaReporters.

NNPCL's spokesperson, Olufemi Soneye, confirmed the report, stating that blending is a standard global practice in refinery operations. However, this explanation has done little to assuage concerns about the project's true intentions.

The conversion of the refinery into a blending plant raises concerns about environmental degradation and economic implications. The region already suffers from severe environmental degradation, and the blending plant's operations may exacerbate these issues. Moreover, the shift from a refinery to a blending plant may not address Nigeria's dependence on imported refined petroleum products.

The coalition demands transparency from the NNPCL regarding the project's details, emphasizing that Nigerians deserve accountability for the funds allocated. "The NNPCL was given substantial funds to transform Port Harcourt into a full-fledged refinery. Instead, they now want to turn it into a blending plant, even after numerous warnings about the environmental risks," Dr. Ikwur stated.

As the controversy unfolds, one thing is clear: the Port Harcourt refinery's reopening has sparked more questions than answers. Nigerians await clarification on the project's future, seeking assurance that their interests are being protected. The NNPCL's response will be crucial in addressing the concerns of stakeholders and restoring trust in the energy sector.