**7.5 million litres of premium motor spirit (PMS) also called petrol, 3 million litres of dual purpose kerosene (DPK) and 6.5 million litres of automotive gas oil (AGO).

**refinery rehabilitation programme will crash the imported fuel price, cut the Subsidy bill.

The Nigerian National Petroleum Corporation (NNPC) has recorded initial successes in the expected rehabilitation and upgrade of the 210, 000 barrels per day plant of the Port Harcourt Refinery Company (PHRC), with the fixing of the Nitrogen Plant that has been down for over one year.

However, the upbeat in the refinery operations is doused by the rising cases of vandalism on the crude supply and product evacuation conduits connected to the refinery, resulting in suboptimal capacity utilization.

Maintenance work at the refinery has translated to significant production upside with total volume output of 17 million liters of different products per day.

Spokesman for the refinery, Mr. Ralph
Ugwu, told journalists that the company was currently churning out about 7.5 million litres of premium motor spirit (PMS) also called petrol, three million litres of dual purpose kerosene (DPK) and 6.5 million litres of automotive gas oil (AGO) also called diesel at the current capacity utilization.

Ugwu said the output from the refinery was contributing to the nation’s petroleum product supply pool as part of concerted efforts of NNPC business arms to guarantee availability of fuel for social and economic activities.

The refinery rehabilitation programme, which is part of a comprehensive plan to improve local production of petroleum products aims to displace significant volumes of costly imported products, crash government’s subsidy bills and optimise capacity utilisation in the domestic refining industry.

In a move to recover full name plate capacity of the plant, according to Ugwu, the management of PHRC activated processes to bring the critical units of the plant back into operation.

He told journalists that the fixing of the Nitrogen Plant had paved way for maintenance and streaming of other vital sections of the refinery, including the Catalytic Reforming Unit (CRU) and Naphtha Hydro-treating unit (NHU).

With restreaming of the three critical units, he explained, over 30 per cent capacity would have been recovered to relaunch the entire refinery into full operation.

Ugwu stressed that the quantity of products from the Port Harcourt Refinery would increase by about 30 per cent after the planned turn around maintenance (TAM) and rehabilitation in the year.

Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, had unveiled the Kalu Idika Kalu-led committee to conduct a capacity audit on the nation’s refineries after which she declared arrangements to recover the name plate capacity of the plants.

Managing Director of PHRC, Mr. Ian Udoh, disclosed that 199 incursions on the seven kilometer product line from the refinery to Okrika Jetty were recorded in 2012 alone, resulting in intermittent operations of the refinery due to haulage constraints.

He also pointed at other concerns over the pipeline breaks to include environmental pollution and degradation, huge economic loss and possible fire outbreak in contiguous local communities.


https://m.facebook.com/hopefornigeria?refid=13&ref=stream&_ft_=fbid.499473246777469

http://thenationonlineng.net/new/business/energy/production-from-port-harcourt-refinery-hits-17m-litres-daily/

if the input and output systems are vandalized then what is the point?

We expect stories of deceit like these is what Nigerians will now be subjected to for the next 2 years! How much is the cost of fuel in eastern Nigeria?

If this is true, shouldn't government cut down on the amount budgeted for fuel subsidy in the 2013 appropriation bill since we are locally refining 7.5million litres out of the average daily consumption of 35million litres? Who buys the AGO from them since the market is already deregulated and at what price does the companies buy it from them since the total cost of refining locally is much cheaper than importing? It is not enough to say that the refinery is working without knowing if we are being short-changed or not!

take dat: If this is true, shouldn't government cut down on the amount budgeted for fuel subsidy in the 2013 appropriation bill since we are locally refining 7.5million litres out of the average daily consumption of 35million litres? Who buys the AGO from them since the market is already deregulated and at what cost does the companies buy it from them since the total cost of refining locally is much cheaper than importing? It is not enough to say that the refinery is working at optimum capacity without knowing if we are being short-changed or not!

No, since vandalism and such can still happen. They should give it a year and still cut prices tho, figure something out but the prices should go down, if people feel the refineries are actually serving them then vandalism will go down but we cannot just cut the subsidy budget because we cannot expect vandalism to just stop, we need to be safe, people need time to change their attitude toward the whole thing. Its a very dicey situation but then running a country always is.

CROWÉ:

No, since vandalism and such can still happen. They should give it a year and still cut prices tho, figure something out but the prices should go down, if people feel the refineries are actually serving them then vandalism will go down but we cannot just cut the subsidy budget because we cannot expect vandalism to just stop, we need to be safe, people need time to change their attitude toward the whole thing. Its a very dicey situation but then running a country always is.

There is no way the refinery won't serve Nigerians with its current considerable capacity utilisation, all that is needed from government is "urgent" measures to curb or reduce pipeline vandalism.

take dat: There is no way the refinery won't serve Nigerians with its current considerable capacity utilisation, all that is needed from government is "urgent" measures to curb or reduce pipeline vandalism.

Of course you are right but Nigerians need to feel it. You see people on this site yelling how GEJ has done nothing in the power sector, he has done much but nobody cares, not until they see 24/7 electricity. The same way nobody will care until fuel prices go down and stealing of electric cables will continue until the cables begin to transmit electricity rather than being there 90% of the time for show. We have been duped too many times, there must be a direct correlation between his actions and our lives otherwise his changes in Nigeria might as well be nursery rhymes which is why it is imperative that fuel prices go down if the vandalism is to go down. Dealing with people is as much practical as it is psychological.

Omo_Tier1: We expect stories of deceit like these is what Nigerians will now be subjected to for the next 2 years! How much is the cost of fuel in eastern Nigeria?

Dude we know of your hatred for GEJ... but at least try and pretend sometimes it will make your posts have more weight... ignore some topics.......#justsaying...

but there are still petrol queues in Port Harcourt coupled with NEPA blackouts.

Lies,lies & more lies, again & again lies,lies , lies bring me more lies lies lies can i have more lies lies lies

These oil pipelines should have a patrol security force.

What's the point when nothing changes?

Lies..and there's still scarcity in port-harcourt and environs.

Only if these things arent jokes.....Subsidy will still be paid this year

Get inspired, visit
www.inspired.com.ng
for your daily inspirational dose!

What is that in barrel terms?

take dat: There is no way the refinery won't serve Nigerians with its current considerable capacity utilisation, all that is needed from government is "urgent" measures to curb or reduce pipeline vandalism.

did you say curb vandalisationnn, the news is all over portharcourt members of JTF were caught on camera by an enviromental right group scoping product from NNPC pipe line in eleme, and military authorities in rivers have refuse to comment because officer who threatend to shot this people claimed oga sent them.

mehn.....dat is gud o00..,.hw much per litres there.

take dat: There is no way the refinery won't serve Nigerians with its current considerable capacity utilisation, all that is needed from government is "urgent" measures to curb or reduce pipeline vandalism.

did you say curb vandalisationnn, the news is all over portharcourt members of JTF were caught on camera by an enviromental right group scoping product from NNPC pipe line in eleme, and military authorities in rivers have refuse to comment because officer who threatend to shot this people claimed oga sent them. Government alone can stop pipe line vandalization because they are the vandals.

KokoBeware:

Dude we know of your hatred for GEJ... but at least try and pretend sometimes it will make your posts have more weight... ignore some topics.......#justsaying...

. Few of our problems are that we are too hipocritical and pretentious.If govt is quoting figures and it does not affect my life why should I stand and support them.Yeye

Great Move by FG. This particular Area has been docile for more than 7yrs. When I was posted there for 2 months,the only thing the operators did was 2 collect salaries at the end of the month.Some of them haven't even produced a barrel of Reformate since they were employed.I almost went crazy sitting there everyday doing nothing, watching equipment worth billions of naira rusting . I was sceptical when work started in Area 2 last december but the FG has proven me wrong.

Presently in PH and filling my tank @ 120/litre. I once heard on the radio that powers that be are trying to subvert the effort of well meaning Nigerians in PH refinery. . . Does this circle of deceit ever end?

good.when we are going to enjoy fresh air by selling a litre of petrol at 50 naira ?

Heeey singing *I Feel good tananananana! I know that am rich now so gud tantan so gud tantan I got u* just sang because NEPA brought d light Now I can watch Cartoon Network instead of reading this lies or better still sh1t.

Granted there is increased output, the populace expect to see price slash as an indication that there is increased out, me too, I wanna see price reduction, but that can only be possible on deregulated products like AGO and DPK, there has to be subsidy removal on PMS once our local production is satisfied, but we are too far from that dream. Nigeria requires 35 million litres of PMS per day and we are too far from achieving that.

kimakazee: Lies,lies & more lies, again & again lies,lies , lies bring me more lies lies lies can i have more lies lies lies

Lies,lies,lies,lies,lies,lies,lies,lies,lies,liiieeeessss. Last nite i bought fuel 4 #120litre. Even at NNPC gas stations there are very long queues. I wonder if d millions of litres are only transported 2 d govt house.

This is good but it must be sustained for over a year before i commend it.

...and JONATHAN is not working so says haters Nigerians and collective amnesia! May be they are awaiting the arrival of 'Funky Mallams' to hijack power at all cost. May God deliver those reasoning along that line. Welldone Sir, President Goodluck Jonathan!

KokoBeware:

Dude we know of your hatred for GEJ... but at least try and pretend sometimes it will make your posts have more weight... ignore some topics.......#justsaying...

What slow brains like you do not under is that demanding that leadership do what is right is not HATRED! An unsecured government truly cannot stand constructive criticism and therefore paint all who disagree with her incompetence in managing the affairs of Nigeria as a sworn enemy!

Tell me, is there any corresponding difference between the prices of fuel in Enugu last year and now, even with the claim that the refinery is now pumping 17million of petroleum products? Why can't some of you understand that a government owe its a point of duty to ensure that critical infrastructure of the state is not a political weapon of mass deception ? P/H refineries are one of the very important and critical infrastructure in Nigeria, which any sane government would ensure works because of the enormous impact it has on the economy.

Well like I said, from now till 2015 elections, we know this incompetent government will engage in the use of weapons of mass deception of all kind.

Billyonaire: Granted there is increased output, the populace expect to see price slash as an indication that there is increased out, me too, I wanna see price reduction, but that can only be possible on deregulated products like AGO and DPK, there has to be subsidy removal on PMS once our local production is satisfied, but we are too far from that dream. Nigeria requires 35 million litres of PMS per day and we are too far from achieving that.

The bold part is the koko(nugget/hardcore) of the matter.
Without deregulation, government involvement in subsidised production and importation will only mean waste at different levels and corruption for government cronies.
In short, government has no business doing business. Its role should be that of a facilitator, regulator and creator of a business-friendly environment for entrepreneurs to flourish.

Did anyone see the below post earlier on this same thread

tawa89: Great Move by FG. This particular Area has been docile for more than 7yrs. When I was posted there for 2 months,the only thing the operators did was 2 collect salaries at the end of the month.Some of them haven't even produced a barrel of Reformate since they were employed.I almost went crazy sitting there everyday doing nothing, watching equipment worth billions of naira rusting . I was sceptical when work started in Area 2 last december but the FG has proven me wrong.

[size=13pt]Each one of US has a role to play in the transformation of our country.[/size] No one and no contribution is too small.
Anyone who thinks her single individual contribution is too small should try sleeping with just one mosquito in her bedroom

_____________________________________________________________________________________
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Join a political party in your LG ward along with folks & friends NOW.

I sw this on Guardian the other day, and think it has some relation t this part of the @OP's article:

He told journalists that the fixing of the Nitrogen Plant had paved way for maintenance and streaming of other vital sections of the refinery, including the Catalytic Reforming Unit (CRU) and Naphtha Hydro-treating unit (NHU).

With restreaming of the three critical units, he explained, over 30 per cent capacity would have been recovered to relaunch the entire refinery into full operation.

Ugwu stressed that the quantity of products from the Port Harcourt Refinery would increase by about 30 per cent after the planned turn around maintenance (TAM) and rehabilitation in the year.

AFTER several years of neglect, occasioned by a systemic plan to make the country a perpetual importer of refined petroleum products, hope has been rekindled for the revival of Nigeria’s largest refinery in Elele, near Port Harcourt.

The moribund refinery has two petroleum refining plants. The old one was built in 1965, with installed capacity of 60,000 barrels per day (bpd), enough to meet domestic needs of the country at that time.

The old refinery, built by Shell Petroleum Development Company (SPDC), has a crude distillation unit, catalytic reforming unit and Liquefied Petroleum Gas unit, as well as utility unit.

The second refinery, built in 1989, has 150,000 bpd capacity and consists of crude distillation unit, catalytic reforming unit, the fluid catalytic cracking unit and the hydrofluoric (HF), Alkylation unit, with a total refining capacity of the two, being 210,000 bpd.

These two key national assets are presently in sheer state of disrepair due to lack of maintenance and what some key players in the petroleum sector have described as a deliberate and calculated attempt kill the refineries to serve the selfish interest of a few Nigerians.

The Group Executive Director, Refining and Petrochemicals, Nigerian National Petroleum Corporation (NNPC), Tony Ogbuigwe, had last year at the first international conference on petroleum refining and petrochemicals, organised by the University of Port Harcourt and Petroleum Technology Development Fund (PTDF) in Port Harcourt, revealed the schedule for the Turn Around Maintenance (TAM) of the Port Harcourt refinery.

He disclosed that after the award of the contract, the contractor would commence detailed planning and mobilisation of manpower and heavy equipment to the refinery site.

It was expected, according to him, that by next month (February), the refinery would be shut down and formally handed over to the contractor for the TAM to be executed in over 45 days.

And all things being equal, the country’s biggest refinery should be back in operation by April this year.

The Guardian investigation revealed that the federal government has awarded the contract for the TAM to Maire Tecnimont of Italy.

A source at the refinery said the contractor has already visited the refinery and some necessary materials for the overhaul of the plants have been delivered.

According to him, government had initially wanted to award the rehabilitation job to JGC Engineering of Japan, original builders of the refinery, but the company declined due to fear of insecurity in the Niger Delta.

Chairman of Senate Committee on Petroleum (Downstream), Magnus Abe, last year blamed the delay of the TAM on the travel advisory issued by the Japanese government.

But the spokesperson of the Japanese embassy in Nigeria, Shinichi Maruo, refuted the allegation.

A top staff of the refinery, who spoke to The Guardian on the basis of anonymity, decried the lack of maintenance of the twin refineries in the last 12 years.

He, however, expressed optimism that unlike in the past, the federal government has demonstrated commitment to fix the moribund refinery this time around.

“We have not started production of petroleum products, but there is hope. The contractor has been engaged and has visited the site. Necessary materials needed for the turn around maintenance have been supplied.

“I can, however, confirm that the physical mobilisation of personnel has not commenced,” he said.

The source explained that preparation for the eventual commencement of the rehabilitation of the refinery was in top gear, saying the determination of government is unprecedented in the past 15 years.

The inability of the refinery to attain its optimal utilisation is primarily due to non-compliance with the TAM schedules.

Furthermore, the refinery has been deviled with serious power problem, as only two of its four installed steam turbines that power the plants have been functional for several years.

Prior to now, the two turbines were supposed to be running at the same time, with the two others on standby, against the current scenario, where only one turbine works at a time.

It would be recalled that Ogbuigwe had disclosed that arrangement for a new captive power supply through gas turbine by an independent power provider had been concluded and a power purchase agreement signed.

According to him, the supply of power to the refinery would commence by March this year, in time to re-stream the plant’s TAM.

The Guardian was reliably informed that one of the major problems affecting the refinery is the delay in fixing the damaged Fluid Catalytic Cracking (FCC) and rotor.

A management staff at the refinery said if the government funds the refineries very well and remove all the bureaucratic bottlenecks, Nigerian engineers could effectively manage them.

He said some of the engineers working at the Eleme Petrochemical plants were recruited from the Port Harcourt Refinery, insisting: “Some of the problems have to do with bureaucracy, approval unit and under-funding.

“The approval unit of the NNPC can only approve contract not exceeding N5 million and if you need to buy equipment worth over a $1 million, that paper must go to the corporate headquarters, from there to the GMD (Group Managing Director), and then to the President.

“Sometimes, before you get the approval, you will find out that the price might have gone up and so you have to write again for variation.”....

http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=112157:port-harcourt-refinery-hope-rises-for-revival-after-years-of-neglect&catid=31:business&Itemid=562

Prays it works out... They also needs to be kept on their toes..