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The Nigerian National Petroleum Company Limited (NNPCL) recently announced a milestone achievement: the re-streaming of the Port Harcourt Refinery and the commencement of trucking out Premium Motor Spirit (PMS), also known as petrol. However, allegations have emerged that the petroleum products being sold to the public are not processed at the refinery as claimed, but rather a blend of purchased substances.
What Is Alleged?
Sources with knowledge of the refinery’s operations revealed that the NNPCL is not trucking out PMS refined at the Port Harcourt facility. Instead, it is allegedly blending Cracked C5 petroleum resins, purchased from Indorama Eleme Petrochemicals, with Naphtha and selling it as though it were processed within the refinery.
Cracked C5 is a modified petroleum resin, while Naphtha, a versatile hydrocarbon, is derived from crude oil and other sources like coal tar. This blend, critics say, is being marketed under the guise of a fully functional refinery.
Refinery Operations in Question
The Port Harcourt Refinery comprises two parts:
The old refinery built in 1965 with a capacity of 60,000 barrels per day, capable of producing diesel but insufficient for large-scale PMS production.
The new refinery built in 1989 with a capacity of 150,000 barrels per stream day, expected to produce significant volumes of PMS.
Sources claim the new refinery is far from operational, with a completion timeline extending to 2026. Current activities reportedly stem from the older unit, which, even if fully operational, would yield only minimal quantities of PMS.
NNPCL’s Claims
On Tuesday, NNPCL released a statement supported by videos showing branded trucks purportedly loading petrol and other products like diesel and kerosene. Group CEO Mele Kyari hailed the development as a “monumental achievement,” marking a new chapter of energy independence for Nigeria.
However, refinery insiders argue that this narrative is misleading. “The plant is running,” a source admitted, “but it’s the old one. It can’t produce PMS. If you hear they are trucking out PMS, know it is a lie.”
Economic Implications
For a country heavily reliant on imported petroleum products, the proper functioning of its refineries is crucial. The NNPCL’s alleged practice of blending substances to pass off as refined petrol not only questions the authenticity of its operations but also undermines public trust.
Additionally, the meager output from the old refinery offers little relief for a nation grappling with skyrocketing fuel prices. Even if the old refinery is fully operational, experts predict it would fail to meet the demands of Nigeria’s population.
The Bigger Picture
This isn’t the first time the NNPCL has been accused of over-promising on refinery deadlines. In the past, successive administrations have set ambitious timelines for restoring the nation’s refineries, yet results have often fallen short.
With the spotlight on the Port Harcourt Refinery, stakeholders are calling for transparency in NNPCL’s operations and more realistic timelines for achieving self-sufficiency in fuel production.