Use of Energy Resources and Energy Performance

Ensure access to affordable, reliable, sustainable and modern energy for all.

The main strategic directions of development of energy saving and energy efficiency of the group are modernization of technological equipment, introduction of energy saving technologies, optimization of generation and consumption of thermal energy, and development of own generation sources, including using APG.

As one of the tasks in the field of environmental protection and increasing the efficiency of production, KMG sees continuing activities in the field of energy efficiency. The Corporate Center collects and analyzes data on energy consumption and energy efficiency indicators, monitors progress and identifies opportunities for improvement, conducts benchmarking with the past period and with indicators of similar companies in the industry (IOGP).

The company’s activities in the field of energy conservation and energy efficiency are based on the methodology of the international standard ISO 50001 “Energy Management Systems”, which is the best generally recognized international practice for system management in this activity.

Energy Consumption

In total, 119.42 million GJ of fuel and energy resources were consumed in the reporting year, which is 5 % higher than in 2016, including: 11.45 MMGJ of electricity, 3.45 billion of heat MMGJ, natural gas -56.89 MMGJ, APG – 17.21 MMGJ, boiler and furnace fuel 18.27 MMGJ, and other types of energy resources.

The increase in energy consumption compared with 2016 is primarily due to the increase in water cut in mature fields, as well as to the modernization of the RK refinery, which resulted in the introduction of new technological installations to increase the depth of oil refining.

Currently, we keep a record of energy consumption only within the organization, in this regard, energy consumption outside the organization is not reflected in this report.

Total Energy Consumption

Energy consumption by fuel type, %

Contribution to Energy Consumption of Subsidiaries

Energy intensity

In 2017, the specific energy consumption in the direction of hydrocarbon production averaged over the Group of companies was 1.6 GJ per ton of produced hydrocarbons, which remains 16 % higher compared to the international association of oil and gas producers IOGP (1.4 GJ per ton of produced hydrocarbons in 2016). In oil production, the specific consumption of energy resources is primarily due to the increase in water cut in production at mature fields.

In 2017, the specific energy consumption in the direction of oil refining averaged at the refinery was 3.0 GJ per ton of processed oil, which is at the same level as that of European plants. At PPCP, a higher level of specific energy consumption is primarily associated with the harsher climatic conditions in the region of the petrochemical enterprise. At PKOP in the reporting year, the increase in specific energy consumption is associated with the modernization of the plant, the construction of new ones and the reconstruction of existing process units to increase the depth of oil refining.

Specific energy consumption in the direction of RWS production

Specific energy consumption in the direction of oil refining

Reducing Energy Consumption

The main strategic directions of development of energy saving and energy efficiency of the group are modernization of technological equipment, introduction of energy saving technologies, optimization of generation and consumption of thermal energy, and development of own generation sources, including using APG.

Thanks to the energy saving measures, consumption of fuel and energy resources decreased by 0.7 % compared to the base year.

We carried out more than 82 energy saving and energy efficiency measures, FS saving fuel and energy resources amounted to 833.3 KGJ, in kind 12.3 MMkW of electricity (0.4 %), 2.1 Kcal of thermal energy (0.3 %), 7,879 Kcm of natural gas (0.5 %) and 14.6 Kt of boiler-furnace fuel (3.3 %). Due to the fact that the main measures for energy saving and energy efficiency, namely the introduction of technological equipment was realized in the IV quarter of 2017, the economic effect in kind of energy resources will be visible only in 2018. The financial expenses for the implementation of these measures amounted to KZT 1,387 million (USD 4.25 million). Saving financial expenses for the purchase of fuel and energy resources amounted to KZT 410.3 million (USD 1.26 million).

In general, the Energy Saving Program in different business segments of the Company has yielded the following results in energy resources saving in 2017:

  •  oil and gas production – 26,7 thous.GJ;
  • oil and gas transportation – 325,1 thous.GJ;
  • oil refining – 481,5 thous.GJ.

Results of activity in 2017

In 2017, an energy audit of the Corporate Center was conducted. Based on the results of the energy audit, 11 energy saving and energy efficiency measures were developed. Potential potential from the implementation of measures will be 14.3 % of the total consumption of fuel and energy in the base year 2016.

Plans for 2018:

  • in 2018, implement measures for energy conservation and energy efficiency, which will result in saving at least 0.8 MMGJ of energy;
  • it is planned to conduct a benchmarking study of Solomon indices, to analyze the current level of development of the RoK’s refineries in comparison with the best world plants;
  • to continue work on attracting investors to energy saving through the ESCO.