We recognize the impact of our activities on the atmosphere and environment, as well as our role in the national and global levels in the field of climate change. In this regard, we are focused on the development of strategies to reduce and control emissions and study of possibilities of introduction of innovative technologies and projects. We strive to comply with national and international environmental requirements for emissions.
We share the world's concerns about climate change.
On November 4, 2016, the Paris Agreement came into force, defining the international legal framework for global efforts to reduce greenhouse gas emissions, improve energy efficiency, move to renewable energy sources and gradually phase out the burning of carbon fuels. Our country joined the Paris Agreement (Decree of President as of July 20, 2016), and on October 27 this agreement was ratified.
We take an active part in improving the country's regulatory framework in this area. At the site of KAZERENGY Association, we participate in negotiations with the Ministry of Energy and Atamaken National Chamber of Entrepreneurs, take part in forums, conferences related to climate change, improve our knowledge and skills for the successful implementation of a strategy to reduce emissions. As part of the Working Group on Emissions Management, together with our subsidiary companies, we are developing a unified position of the Group on the matter of legislative regulation of greenhouse gas emissions.
Greenhouse gas emissions
We carry out an annual inventory of greenhouse gas emissions as part of state system for registration and regulation of greenhouse gas emissions. Calculation of greenhouse gas emissions with direct greenhouse effect (carbon dioxide, methane, nitrous oxide, petrofluorocarbons) is based on methodological guidelines for calculating greenhouse gas emissions approved by the authorized body. Inventory reports are subject to verification.
Thanks to the measures taken to reduce greenhouse gas emissions, such as changing the technological mode of production, transferring vehicles to natural gas, landscape gardening, etc., there is a reduction in greenhouse gas emissions in exploration and production. For example, at one of the producing companies, 24 water-heating boilers have been converted to electric heating. In the direction of "Transportation", 136 units of vehicles were transferred to gas motor fuel (242 - in 2015), including 25 units - to compressed natural gas. We expect a significant reduction in greenhouse gas emissions in 2018 as a result of increased use of associated petroleum gas (APG).
Recovery of associated petroleum gas
One of our most important tasks is to increase the use and utilization of APG, minimizing flaring. We use APG in the fields to generate electricity and for our own technological needs. Commodity associated gas is supplied to gas processing plants for the local population.
The level of gas use on average in the Group in 2016 amounted to 86% (in 2015 - 85.3%). Most of our fields have achieved a utilization rate of more than 95%. Only in 2 of our subsidiary companies, associated gas is still flared in large quantities (the level of utilization there remains at the levels of 55% and 66%). The construction of infrastructure and modern facilities for utilization of APG will allow full-scale development of production assets and significantly reduce greenhouse gas emissions into the atmosphere.
As part of a global initiative by the World Bank to stop the regular flaring of APG by 2030, we participated in a meeting of the Steering Committee in London in June 2016; held a meeting in Astana in September with the participation of representatives of the World Bank and subsidiary companies of the Group to discuss the scopes of cooperation in the area of APG utilization and possible joint activities. As part of the initiative in the first quarter of 2017 the first reporting on associated gas flaring for 2016 was submitted.
Pilot project on direct detection of methane leaks
In 2016, we continued the field research project launched last year at the facilities of KMG Group of companies to identify and quantify methane emissions from leaks and weathering. In September 2016, together with the US Environmental Protection Agency (EPA) and Global Methane Initiative, surveys of production facilities in the Aktobe region were carried out.
The aim of this survey is the provision of technical support and increasing technical capabilities which would enable to identify projects to reduce emissions, identify the highest priority among them and contribute to their implementation. Based on the results of the research, the main sources of emissions and the potential for reducing methane emissions for the KMG Group of companies were identified. In addition to the climatic effect, the prevention of methane leaks will lead to significant savings in financial resources.
In 2017, we joined the Global Methane Initiative.
One of the main environmental objectives of the Group is the reduction of pollutant emissions. We implement a set of measures aimed at compliance with established standards and reduction of pollutant emissions, including inventory of emission sources, quarterly industrial environmental air quality control, improvement of our technological processes.
We continue the program of large-scale modernization of oil refineries, which will not only enable to provide the domestic market of the Republic of Kazakhstan with high-quality petroleum products of the ecological class K4 (reduce sulfur, benzene, olefin hydrocarbons content in products), but also reduce the negative impact on the environment through increased automation of management, application of energy saving and environmentally friendly technologies, rational use of natural resources.
We are helping regions in the transition to cleaner types of fuels. With the assistance of KazTransGas JSC, we implement the program of transition of passenger vehicles, cleaning vehicles to compressed natural gas (CNG) in the city of Almaty. CNG is a more environmentally friendly and cost-efficient type of fuel than traditional ones - gasoline, diesel and liquified petroleum gas. 5 Automobile CNG Filling Stations were built and are functioning. In the city of Aktobe, as part of the Program for the transfer of passenger buses (more than 200 units) to CNG, the construction of Automobile CNG filling stations is planned for 2017.