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.
Kazakhstan intends to contribute to international efforts to combat climate change.
In September 2015, 17 global sustainable development goals have been adopted, one of which is taking urgent measures to combat climate change. These goals coincide with the priorities and objectives of Kazakhstan and KMG group of companies.
In December 2015, on the 21st session of the Conference of Parties (COP21) to the UN Framework Convention on Climate Change (UNFCCC), Paris Agreement was adopted. The contribution declared by Kazakhstan (INDC) is
the reduction of greenhouse gas emissions by 2030 by 15% from 1990 emission level, (unconditional target) or more ambitious goal is the reduction of overall, national emissions by 25% (conditional target).
We share the concern of the international community with the climate change, and regularly carry out the assessment and control of greenhouse gas emissions in accordance with the approved methodology. Our work is aimed to reduce direct greenhouse gas emissions through the implementation of measures to reduce emissions, monitoring and control of emissions into the atmosphere, as well as the implementation of the program for the detection of methane leaks.
As part of working groups within the Ministry of Energy, we are actively involved in the improvement of the normative legal base of Kazakhstan. In cooperation with the USAID Kazakhstan program to constrain climate change, we improve knowledge and skills to enhance our abilities in the implementation of emission reduction strategy.
Greenhouse gas emissions
The National Plan includes 13 of the largest subsidiaries and affiliates of the Group with a total of 6.77 million tons of quotas. Despite the fact that there is an increase in production, there is a tendency for the reduction of greenhouse gas emissions.
Main part of greenhouse gases emissions in the atmosphere falls on the production and processing sector and their share is 46% and 44%, respectively.
Thanks to the measures taken to improve energy efficiency in the oil-producing companies of the group, for the period from 2012 to 2014 we observe a tendency in the reduction of specific CO2 emissions per unit of oil production.
In 2015, average figure of specific CO2 emissions in hydrocarbon production for the Group of companies amounted to 121 thousand tons of CO2 per ton of extracted hydrocarbons
*In 2014 IOGP members reported the emissions of 134 tons of CO2 per thousand tons of hydrocarbons.
In cooperation with a Norwegian company, we conducted a pilot project for the detection and measurement of methane leaks at production facilities of our two mining companies. This project is implemented under the Program to reduce methane emissions, which is one of the tools of assistance provided by Norway to promote the reduction of greenhouse gas emissions in the Republic of Kazakhstan. The work carried out at certain production facilities allowed to detect and quantify the leaks of CH4 from various emission sources.
Preventing methane leaks may lead to potential financial savings. In 2016 we decided to continue the implementation of the methane project at a new research facility.
Associated gas utilization
Our company supported the World Bank's "Zero Routine Flaring by 2030" initiative. The initiative brings together governments, oil companies and development organizations who agree to cooperate in order to end the practice of regular routine flaring not later than 2030. This initiative concerns the regular routine flaring of associated gas rather than flaring for security reasons or irregular flaring.
In 2015, most of SDEs of KMG reached the level of APG utilization of 95% and the overall level of gas utilization by KMG group of companies amounted to 85.3% (87.5% in 2014). However, four fields that belong to EMG and KOA have the utilization rate of 55 - 66%. We are taking measures to address this problem and achieve 100% APG utilization level in all fields of KMG Group of Companies.
For example, EMG is currently engaged in the construction of desulphurization plant for the associated gas at Prorva group fields. This project will allow increasing gas utilization in KMG group of companies from 85.3% to about 90%.
APG utilization level in KOA - 70%. To date, a Road map for the modernization of the plant and the construction of Comprehensive gas treatment unit on Kozhasai field has been developed and approved. Construction of a plant in the Kozhasai field is planned to be done by KTG in cooperation with project partners.
Over the past 4 years there has been an increase in gas production in the whole group, while in 2012-2014 there was an obvious trend in flaring reduction.