The Port Harcourt Refinery has officially resumed operations following extensive renovation and rehabilitation efforts that began in 2021. The first batch of petroleum products is scheduled to be dispatched from the facility today Tuesday, November 26, 2024, marking a significant milestone for Nigeria’s energy sector.

Located in Alesa Eleme, Port Harcourt, the refinery complex consists of two operational units established in 1965 and 1989. With a combined installed capacity of 210,000 barrels per day, the facility is designed to reduce the country’s dependence on imported petroleum products. The Older Unit Capacity spans at 60,000 barrels per stream day with the renovation of the facility, the New Unit Capacity now produces at  150,000 barrels per stream day.

The refinery’s operations will produce premium motor spirit (PMS), diesel, and liquefied petrol.

Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mallam Mele Kyari, who toured the refinery on Monday night and is expected to oversee the dispatch of the first petroleum products,  said that  the refinery’s reopening is a  step towards energy self-sufficiency, with the aim of alleviating foreign exchange pressures caused by fuel importation.

In a statement shared with The Nation, NNPCL Chief Corporate Communications Officer Olufemi Soneye described the development as “a historic milestone.” He added:

“Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing. This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation.” Soneye said that the NNPCL is also “working tirelessly to bring the Warri Refinery back online soon”. This comes after several failed commencement deadlines.

Economic Implications for the Niger Delta

While stakeholders celebrate the refinery’s resumption as a potential game-changer for Nigeria’s petroleum industry, residents in the Niger Delta, particularly in Rivers State, remain concerned about how this development will address the high cost of petroleum products.

Some residents of Niger Delta  believe the refinery’s operation could stabilize fuel prices and alleviate the burden of rising transportation costs, which have significantly affected domestic activities and small businesses. “If they truly refine here, it should mean cheaper fuel for us,” said Finima Joel a commercial driver in Port Harcourt. “But we’ve seen promises like this before, and yet prices keep going up.”

Some residents are skeptical, questioning whether the refinery’s output will be sufficient to meet local demand and lower prices. “They say they will reduce dependence on importation, but we’ve not seen fuel prices drop even with Dangote Refinery starting,” noted Ifeoma Emeka, a trader in Eleme.

On the other hand, the refinery’s reopening is expected to boost job creation in Rivers State. “We are hopeful that this will mean more employment for our youths and better economic activities,” said Kelvin Boma, a youth leader in Ahoda East Local Government Area.

Experts believe the refinery’s operations could foster economic growth in the Niger Delta by:

Reducing Distribution Costs: The proximity of fuel production to major consumers in the Niger Delta could lower logistics costs and increase availability of petroleum products locally.

Environmental Impact: The refinery’s modernization may incorporate improved environmental standards, potentially reducing pollution levels often associated with outdated refining practices.

Increased Local Content: The refinery’s revival could encourage local procurement of materials and services, benefiting small and medium enterprises in the region.

Despite the anticipated benefits, the high cost of petroleum products remains a pressing concern. Households and businesses in the Niger Delta report spending a significant portion of their income on fuel, with transportation and production costs rising across the board. “We need a clear strategy from the government to ensure these refineries actually make life easier for us,” said Ene Tonye, an entrepreneur in Port Harcourt.

As the first trucks of petroleum products leave the Port Harcourt Refinery, residents watch closely, hopeful that the reopening marks the beginning of a transformative era for the region’s economy and the nation’s energy sector. However, the question of how soon these benefits will trickle down to ordinary citizens remains unanswered