THE Nigerian government’s huge spending on foreign exchange for fuel importation will drop as the Federal Government has announced the ‘mechanical completion’ and the flare start-off of the Port Harcourt refinery.
Mechanical completion is defined by projectdefinition.com as the final phase of construction activities to verify the completeness of the constructed plant that each installed component conforms to or is fabricated, installed, and tested in accordance with the project specifications and procedures after all mechanical works, including pre-commissioning (PC) activities, are completed.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, announced the development during tour of the Port Harcourt refinery on Thursday, December 21 in a statement signed by the Nigerian National Petroleum Company Limited company (NNPCL) on Thursday, December 21.
“Just to announce to Nigerians the fulfilment of our pledge to bring on stream phase one of the Port Harcourt refinery by the end of 2023 and the subsequent streaming of phase two in 2024. We happily announced the mechanical completion and the flare start-off on the 20th of December 2023,” Lokpobiri said.
The Port Harcourt Refineries comprise two units, with the old plant having a refining capacity of 60,000 barrels per day (bpd) and the new plant 150,000 bpd, both summing up to 210,000 bpd.
The refinery was shut down in March 2019 for the first phase of repair works after the government secured the service of Italy’s Maire Tecnimont to handle the scoping of its complex, with oil major Eni appointed technical adviser.
Commenting on the progress of the rehabilitation, the minister explained that production of petroleum products at the refinery would commence after the Christmas break.
“This heralds the commencement of production of petroleum products after the Christmas break. We want to thank Nigerians for their patience and trust in the NNPC to deliver on her promise and mandate of the rehabilitation of our refineries, “Lokpobiri said.
Also, in his remarks, the Board Chairman of NNPC Ltd, Pius Akinyelure, expressed satisfaction over the new development.
He recalled that the refinery had undergone several phases of rehabilitation, noting that its commencement of operations would keep fuel costs stable.
Domestic refining of crude will impact 52 million litres of daily consumption of petroleum products in Nigeria, findings show.
Speaking on the development, the President of the Petroleum Retail Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, told The ICIR that the development would lead to stable pricing of petroleum products in the country.
“Export, shipping, trains-shipment costs, and insurance are the costs that Nigeria won’t be paying when it refines large chunk of its imported petroleum products locally. Foreign exchange, which we are lacking now, will be saved also. It is a very welcome development for the sector, “he added.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.