The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has joined the growing conversation surrounding the functionality of the old Port Harcourt Refinery, addressing widespread skepticism about its operations.
The refinery, which has a capacity of 60,000 barrels per day (bpd), is under scrutiny following claims that it is operational, though lacking a critical reformer unit required for independent petrol production. It has been argued that the facility’s erratic functionality and reliance on blending instead of refining raise concerns about the government’s transparency, with some describing the refinery as a potential sham.
Speaking on Arise Television, PENGASSAN President Festus Osifo confirmed that the refinery is producing some petroleum products, albeit with significant limitations. He disclosed that while the refinery’s Crude Distillation Unit (CDU) is operational, it lacks a Catalytic Reforming Unit (CRU), which is vital for producing petrol directly from naphtha.
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“Nigerians have every reason to doubt the government. We have every reason to question assertions from governments because over the years, they have actually let us down,” Osifo stated. He continued, “Really, from our checks, the Port Harcourt refinery is actually working. But let me explain this. In petroleum products production, you take the crude and pass it into what they call the CDU. That unit today, as we speak, is working.”
Osifo explained that the CDU is responsible for producing kerosene (DPK), diesel (AGO), and naphtha, which is an intermediary product. However, the absence of a functioning reformer unit means the refinery cannot refine naphtha into petrol independently. Instead, naphtha is blended with Crack-C5 sourced from external suppliers, such as Indorama Petrochemicals, to produce Premium Motor Spirit (PMS).
“What is now happening at the moment is that you are going to take that naphtha and merge it with Crack-C5. It will now be blended with naphtha, and some other processes take place, and now it gives us PMS,” Osifo said.
Energy analyst Kelvin Emmanuel, who has been critical of NNPC Limited, said PENGASSAN has proved his assertion that the refinery is more like a blending facility. He highlighted the absence of a Vacuum Distillation Unit (VDU), a critical component for refining heavier fractions of crude oil into high-value products.
“The truth is coming out gradually. Area V is not a refinery; it’s a blending plant. The SRG [Straight Run Gasoline] that’s used as the main chemical component for curing with C5 is not produced there but imported into Okirika Jetty,” Emmanuel said.
He added that PENGASSAN has “Confirmed that they basically relocated the Malta blending business to Port Harcourt.”
Emmanuel’s assertions align with concerns that the refinery’s limited capabilities undermine its utility and raise questions about the government’s honesty in representing its operational status.
A History of Inconsistent Operations
The Port Harcourt Refinery, like others in Nigeria, has struggled with operational inconsistencies for years. Despite government assurances that the facility has been revamped, it has failed to deliver consistent outputs since it was relaunched.
Observers have criticized the facility as a “white elephant project,” citing over $2 billion invested in its rehabilitation over the years.
PENGASSAN’s Osifo acknowledged this history, emphasizing that Nigerians’ skepticism is justified given past disappointments.
“What Nigerians should be interested in today is, is the Port Harcourt refinery producing AGO? The answer is yes. Is the old Port Harcourt refinery producing kerosene? The answer is yes. Is it producing PMS today? The answer is yes. But Nigerians have every reason to doubt and question government pronouncements, considering that they had been betrayed several times,” he said.
Installing a Catalytic Reforming Unit, essential for refining naphtha into petrol, can be prohibitively expensive. According to industry leaders, the cost of a CRU can rival or exceed the combined cost of installing multiple refinery trains. This steep expense may explain the government’s focus on partial functionality rather than comprehensive upgrades.
“There is no refinery in the world that has a CDU that produces PMS in a single tranche,” Osifo explained. “Even Dangote Refinery’s CDU doesn’t just produce PMS. But there is a product that comes out that is close to PMS. You have to produce it to spec, or it damages vehicles.”
Osifo assured Nigerians that PENGASSAN would address the refinery’s issues at its upcoming National Executive Council meeting. He emphasized the importance of focusing on the refinery’s outputs rather than its processes. “In all honesty, the refinery is working, and these products are all there and coming out,” he stated.