The Nigerian National Petroleum Company Limited (NNPCL) has reportedly sold its first batch of low sulfur straight run fuel oil (LSSR) from the recently refurbished Port Harcourt Refinery to Gulf Transport & Trading Limited (GTT), a Dubai-based company.
Refinery Operations and Initial Export
According to a report by data analytics firm Kpler, the refinery’s Coolant Distribution Unit 1 began operations this week, with production estimated at 20,000 barrels per day (bpd). The refinery’s first export cargo, 15,000 metric tons (approximately 13.6 million liters), was sold at an $8.50 per ton discount to the Northwest Europe 0.5% sulfur benchmark.
The shipment, bound for Dubai, marks a phased restart of the 60,000 bpd section of the Port Harcourt Refinery, which is currently operating at 70% capacity.
Implications for Local and Regional Markets
Kpler noted that this development could reduce Nigeria’s reliance on imported fuel and impact suppliers from Africa and Europe. The report highlighted a trend of decreasing clean product imports into Nigeria and the wider West African region.
However, the report also revealed that only one of the refinery’s two units is operational. The second, with a capacity of 150,000 bpd, remains offline and will only commence operations after the current phase stabilizes. Full refinery capacity of 210,000 bpd is expected to be achieved by late 2026.
Production Estimates and Projections
For now, NNPCL plans to run the refinery at a reduced capacity, producing mainly gasoline, diesel, jet fuel, and fuel oil. By Q4 2025, output is projected to include:
- 15,000 bpd gasoline
- 15,000 bpd diesel
- 6,000 bpd jet fuel
- 24,000 bpd fuel oil
With full operations by late 2026, the refinery could significantly increase its output, including higher volumes of gasoline and diesel.
Criticism of Export Focus
The decision to prioritize exports over local supply has raised concerns, as Nigeria continues to grapple with fuel shortages and high costs. While NNPCL claims that domestic distribution via trucks has begun, the bulk of current production appears geared toward export markets.
The report also highlighted a steady decline in Nigeria’s crude inventories, with reserves dropping from 1.5 million barrels in August to about 1 million barrels in November. This stockpile is sufficient for approximately one month of operations at current levels.
Looking Ahead
As NNPCL aims to ramp up production, questions remain about its commitment to addressing Nigeria’s domestic fuel demands. Observers have criticized the emphasis on exporting fuel at a time when the country is struggling to stabilize its energy sector.
NNPCL spokesperson Olufemi Soneye has yet to comment on the development.
