Port Harcourt Refinery : NNPCL reportedly exports fuel to Dubai

The Port Harcourt Refining Company (PHRC) has reportedly begun exporting low-sulphur straight-run fuel oil, with its initial shipment heading to Dubai, United Arab Emirates.

The development has sparked mixed reactions among industry stakeholders, given the lingering concerns about the refinery’s output since it resumed operations under the management of the Nigerian National Petroleum Company Limited (NNPCL).

Following a series of delays, PHRC officially restarted operations on November 26, 2024.

According to a PUNCH report, the refinery, recently rehabilitated, has sold its first cargo of refined petroleum products to Gulf Transport and Trading Limited, a Dubai-based firm.

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Data from Kpler, a research and analytics firm, revealed that the refinery’s Coolant Distribution Unit (CDU) 1 commenced operations this week. Currently operating at about 20,000 barrels per day (bpd), the 60,000 bpd facility is running at 70% capacity.

The refinery’s first shipment consists of 15,000 metric tonnes of low-sulphur straight-run fuel oil, equivalent to 13.6 million litres. Kpler’s report noted:
“Port Harcourt sold its first LSSR cargo, with a sulphur content of 0.26 per cent wt and a 0.918 g/ml density at 15°C, to Dubai-based Gulf Transport & Trading Limited. Loading onboard the Wonder Star MR1 in the coming days. The 15,000 metric tonnes cargo, sold at an $8.50/t discount to the NWE 0.5 per cent benchmark on an FOB basis.”

Although the shipment’s global market impact remains limited, analysts suggest it may shift market dynamics for traditional exporters into Nigeria and the West African region.

Kpler also highlighted that the production of LSSR stemmed from the 60,000 bpd unit, which is expected to produce around 60,000 metric tonnes monthly. The larger 150,000 bpd facility remains offline pending stabilization of the initial phase.

NNPCL had previously announced that CDU 1 operations began on November 26, with additional exports being facilitated via truck transportation.

Industry Concerns
Despite this milestone, questions linger about the refinery’s production capabilities.

An industry source, who requested anonymity, commented: “This cargo is a ploy to make people believe that what they have set up in Eleme is a refinery. But what they will do is transship that cargo to Central Europe and send it back to Nigeria.”

A midstream oil sector operator echoed skepticism, saying: “It is surprising to hear the plant has started exporting refined products. With just 70 per cent capacity from the 60,000 bpd facility, the question remains: what quantity is it truly capable of exporting?”

Local Operations and Challenges
Locally, operations at the refinery have shown gradual improvement. After initial setbacks related to facility upgrades and de-watering of old stock, the refinery is now dispatching fuel via truck.

A tour of the facility revealed functional loading arms, with only three currently in use. Terminal Manager Chike Joel said:
“If you give us 100 trucks today, we can evacuate them in less than five hours.”

Despite claims, findings suggest fewer than 20 trucks lifted products during the refinery’s first operational week. However, activity picked up, with 19 trucks loaded on Thursday.

As of now, only major marketers like NNPC and Oando are utilizing the facility due to pricing concerns, leaving independent marketers yet to engage with the refinery.

Efforts to obtain comments from NNPCL’s spokesperson, Femi Soneye, on the refinery’s operations were unsuccessful.

(PUNCH)