Goal of the Programme

The main goal of the Programme is to reduce the carbon footprint of KazMunayGas.

KazMunayGas has initiated the development of its Low-Carbon Development Programme, which includes both existing opportunities to reduce its carbon footprint (improved energy efficiency and resource conservation), and additional areas for decarbonisation (RES, Carbon Capture, Utilisation and Storage, forest carbon projects, hydrogen production).

One of the key decarbonisation areas is the development of renewable energy. The Low-Carbon Development Programme provides for a separate unit to deal with involvement of renewable energy sources (RES) in the overall energy balance of the KMG Group.

In the medium term, we explore the possibility of implementing a pilot project for Carbon Capture, Utilisation and Storage at one of the Company’s production assets.

New technologies for generating and storing energy are emerging and being tested in the world. Oil and gas bigwigs today see hydrogen as an opportunity to expand their dominant influence. KazMunayGas has also started to explore the prospects for hydrogen production in the long term.

We expect the Low-Carbon Development Programme to deliver results in the near, medium and long term. Investments in low-carbon projects are being assessed.

For the purpose of Programme development, KMG has set up a Project Office for low-carbon development and is considering the creation of a Competence Centre for hydrogen energy and carbon capture, storage and processing.

KMG has determined the preliminary goals to reduce greenhouse gas emissions by 15% of the 2019 level, by 2031. These goals correlate with the countrywide goals under the Paris Climate Agreement and plans for an annual 1.5% reduction in greenhouse gas emission quotas allocated by the Ministry of Environment for the KMG Group.

It should be noted that this goal does not cover new projects and will be updated as KMG develops its Low-Carbon Development Programme. The year 2019 is defined as a baseline year, the closest to the typical operations of the KMG Group, unlike 2018 affected by the economic crisis and 2020 influenced by the coronavirus pandemic.

It should be noted that the KazMunayGas Group’s direct emissions (Scope 1) amounted to about 7.4 million tonnes in 2019, or about 2% of the country’s volume, and indirect emissions (Scope 2) — to 3.3 million tonnes.