Compliance with the requirements

We try to conduct our production activity within the framework of the legislation of the Republic of Kazakhstan and to take appropriate measures to prevent environmental damage.

KMG also conducts periodic inspections of production facilities in order to identify any inconsistencies with legislative requirements and preventive measures to improve operations at the corporate level. Each subsidiary and dependent entity has production control plan and plan of inspections of production facilities in relation to compliance with the environmental laws of the Republic of Kazakhstan at various levels of management, and voluntary environmental audits are conducted at certain production facilities each 5 years in order to determine recommendations for improvement of activity.

The Company will continue its work on detection of inconsistencies with the environmental legislation of the Republic of Kazakhstan at production facilities, on identification of problem issues and risks management to take measures on prevention of any inconsistencies with the requirements of the legislation.

According to the results of 2016–2017, there is a tendency on reduction of actually paid penalties for admission of violations of environmental legislation compared with previous years.

In 2017 total amount of paid penalties was 245 million KZT (1,170 million KZT in 2016, 1,764 million KZT in 2015), including administrative fine, damage compensation and excess payments.

Significant violations are: untimely receipt of permits for emissions into the environment, non-compliance with conditions of environmental management, excessive emissions to the environment, failure to implement waste management plans.

2 cases of non-financial sanctions were fixed in 2017 (6 in 2016).

2 cases with usage of dispute settlement mechanisms were noted in 2017. According to one of them, 49 million KZT was paid for non-compliance with the legislation of 2016 for untimely receipt of an emission permit. In the second case, the proceedings continue. The company won the dispute in the court of first instance, in the result of which the claim in the amount of 953 million KZT was not paid.

Paid environmental fines, mln KZT

Case history

Social and economic effects of modernization of refineries in 2017

Atyrau Refinery

Due to the fact that the plant will start production of gasolines and DF of emission classes K4 and K5, content of sulfur and benzole, which are carcinogenic substance, will significantly decrease. The main difference between K4, K5 and K2:

  • for gasolines – in the content of sulfur, benzole and aromatic hydrocarbons (sulfur content is 50–100 times lower);
  • for diesel fuel – by cetane number, in sulfur content and mass fraction of polycyclic aromatic hydrocarbons.

And the higher the class (K5), the safer is fuel for the environment.

According to plan on reasonable use and saving of water resources for 2017–2021, Atyrau refinery expects an average annual decrease in fresh water consumption by 500 thousand m3, a reduction in effluent discharge by 115 thousand m3.

About 4,000 people involved during implementation of the project in construction and installation work. DCC created 490 new jobs for the subsequent operation.

Residents of village Peretaska, who entered the sanitary protection zone of the CPA and DCC, migrate to safe areas of Atyrau. So, at the end of 2016, resettlement of residents of multi-apartment buildings No. 6, 10, 12, located at Z. Cabdolov Street, was completed. In 2017–2018, this work continues.

Pavlodar Refinery

  • Due to the fact that the plant will produce gasoline and diesel fuel of emission class K4 according to the requirements of the Customs Code of the Customs Union, the content of sulfur and benzole, which are carcinogenic substances, will significantly decrease;
  • fresh water consumption will remain at the current level of 1.1 m3/year, a reduction of sewage disposal by 360 thousand m3 is expected.
  • For the period of construction of new installations, 2,000 people participated in the works, 161 working places were created for local specialists during the operation.

Shymkent Refinery

  • Due to the fact that the plant started production of gasoline and diesel fuel of emission class K4, K5 according to the requirements of the Customs Code of the Customs Union, the content of sulfur and benzole, which are carcinogenic substances, has significantly decreased;
  • PKOP is expected to reduce freshwater consumption by 743.9 thousand m3;
  • up to 4,800 people were involved in the construction period, 445 people were involved in operation.

Suppliers environmental assessment

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

Procurement of goods, works and services is carried out in accordance with the procurement rules of “NWF “Samruk-Kazyna” JSC. Potential suppliers are pre-qualified during procurements, including by the criterion “Environmental protection”. The shareholder also approved a list of goods, works and services, purchased from qualified potential suppliers, in 2017.

There is no documented procedure for the environmental assessment of suppliers in the group. However, it is planned to develop a corporate standard for contractor management on HSE issues in 2018. Nowadays the requirements in the area of safety and labor protection, requirements on compliance with environmental safety are included in the obligations of all Counterparties of the KMG. Signing the contract, the suppliers confirm familiarization with the documents of the Management System in the area of HSE.

Impact of suppliers of goods, works and services is taken into account during execution of general environmental impact assessment. Projects are subject to state environmental expertise, all necessary approvals and permissions are received before the commencement of work, taking into account impact and participation of all suppliers of works and services during performance of production operations.

History case

A program on introduction of a scoring system for assessment of safety and labor protection in contract and service organization, performing work at existing facilities of the enterprise, was launched in April 2017, at the Atyrau refinery, within the implementation of project “AMAN”. Five contract organizations took part in the program. Activities of the companies, participating in the program were assessed by following criteria: observance of occupational safety and health regulations, availability of personal protective equipment, qualification level of engineering staff, quality and timely performance of work, labor discipline, and technical equipment.