Port Harcourt Refinery Supplies Diesel Despite Shutdown – NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has clarified that the Port Harcourt Refining Company has been supplying diesel to the domestic market despite the refinery not being fully operational. The regulator said the development reflects interim arrangements put in place to support fuel availability while rehabilitation works at the facility continue.

NMDPRA explained that the diesel being supplied from the Port Harcourt refinery complex is sourced through ancillary and blending operations within the facility, rather than from full-scale crude oil refining. According to the authority, these activities are permissible under existing regulatory provisions and are aimed at easing supply pressures in the downstream petroleum sector.

The clarification followed public debate and concerns over reports that the refinery was inactive yet linked to product supply. NMDPRA said it was important to distinguish between complete refining operations and other legitimate processes that allow petroleum products to be handled, blended or dispatched from a refinery complex even when core refining units are undergoing rehabilitation.

According to the regulator, the Port Harcourt refinery remains under phased rehabilitation, with work progressing on critical units required for full operations. However, certain infrastructure within the complex, including storage tanks, loading facilities and utilities, is functional and can support limited product supply activities.

NMDPRA stressed that diesel supplied from the facility meets regulatory quality specifications and is subject to routine monitoring and testing. The authority said it remains committed to ensuring that all petroleum products released into the market comply with national standards to protect consumers and equipment.

Industry sources said the interim diesel supply arrangement has helped augment domestic availability at a time when demand remains strong, particularly from the transport, manufacturing and power generation sectors. Diesel continues to play a significant role in Nigeria’s energy mix, especially given persistent power supply challenges.

The regulator noted that the arrangement does not imply that the refinery has resumed full refining operations. Instead, it said the focus remains on completing rehabilitation work to restore the plant to sustainable production levels. NMDPRA added that timelines for full operations depend on technical milestones and safety considerations.

The Port Harcourt refinery, one of Nigeria’s state-owned refining assets, has been undergoing rehabilitation as part of broader efforts to revive domestic refining capacity and reduce dependence on imported petroleum products. The project has attracted significant public attention due to repeated delays and the strategic importance of the facility.

NMDPRA acknowledged public concerns around transparency and accountability in the management of Nigeria’s refineries. It said the authority continues to engage with relevant stakeholders, including the Nigerian National Petroleum Company Limited, to ensure that operations and interim arrangements are properly communicated and regulated.

According to the regulator, supplying diesel through non-crude processing activities is not unusual in the industry, especially during periods of maintenance or phased restart. Such practices, it said, are often used globally to optimise available infrastructure and support market stability.

Energy analysts said the development highlights the complexities involved in refinery rehabilitation and restart processes. They noted that large refineries typically undergo phased commissioning, during which certain units or services may become operational ahead of full production.

Analysts also pointed out that while interim diesel supply can help ease short-term pressures, it does not replace the need for fully functional refineries capable of processing crude oil into a wide range of petroleum products. They said Nigeria’s long-term energy security depends on sustained investments in refining, infrastructure and governance.

NMDPRA reiterated that it will continue to provide regulatory oversight throughout the rehabilitation process, including inspections, compliance checks and product quality assurance. The authority said it is working to ensure that any products supplied from the refinery complex are properly accounted for and distributed transparently.

The regulator also urged the public to rely on verified information and avoid speculation, noting that misinformation could undermine confidence in the downstream petroleum sector. It said clear communication remains essential as Nigeria navigates reforms and transitions in its oil and gas industry.

Stakeholders in the downstream sector have called for regular updates on the status of refinery rehabilitation projects, including timelines, capacities and expected outputs. They argue that transparency is critical to managing expectations and building trust in government-led energy initiatives.

NMDPRA said it shares these concerns and is committed to improving information flow as part of its regulatory mandate. The authority noted that restoring domestic refining capacity remains a key objective under Nigeria’s petroleum sector reforms.

The supply of diesel from the Port Harcourt refinery complex, even while core refining units are shut, has also renewed discussions around the need for clearer definitions of operational status. Experts say regulators and operators must clearly communicate what constitutes production, blending or storage activities to avoid public confusion.

As Nigeria continues efforts to boost local refining through public and private investments, observers say the Port Harcourt refinery remains a critical test case. Its successful rehabilitation and return to full operations could significantly reduce import dependence and support price stability in the downstream market.

For now, NMDPRA maintained that the diesel supply arrangement is a temporary measure within regulatory bounds, pending the completion of rehabilitation works. The authority said its priority remains ensuring adequate product availability, safety and quality, while supporting the long-term goal of a self-sufficient and transparent petroleum sector.