The Company follows the principle of zero tolerance for losses and damages associated with environmental pollution and operates under national environmental legislation and best international practices.
In 2019, KMG approved the Emissions Management Policy, which consists of eight key principles:
- Operating in strict compliance with the law and other Company commitments
- Following the established pollutant emission standards and emission limits, greenhouse gas quotas
- Clearly allocated functions and duties, increased competence, training, and awareness
- Regular recording, inventory checks, and monitoring of emissions
- Ending regular flaring of raw gas during hydrocarbon production operations
- Activities to reduce greenhouse gas emissions and carbon footprint
- Management of carbon assets
- Continuous improvement of emissions management activities
One of the key areas for minimizing the impact on the environment is the reduction of emissions of pollutants into the atmospheric air. The following activities are being carried out:
- Phased replacement of obsolete burners in oil heating furnaces;
- Integrated gas treatment and processing facilities are under construction;
- Work is underway to install pontoons for vertical oil tanks to prevent the evaporation of hydrocarbons.
- Installation of catalytic converters for pollutant emissions on oil heating furnaces, etc. is being carried out.
The standard volume of emissions of all pollutants in the KMG Group in 2021 was 110.2 thousand tons (in 2020, 110.7 thousand tons).
| 2019 | 2020 | 2021 | ||
|---|---|---|---|---|
| Emissions of pollutants into the atmosphere, total: | 118,3 | 110,7 | 110,2 | |
| NOx emissions | 12,5 | 12,7 | 12,7 | |
| SOx emissions | 12,2 | 12,5 | 12,2 | |
|
93,6 | 85,5 | 85,3 |
| 2019 | 2020 | 2021 | |
|---|---|---|---|
| Production of CHC, t/1000 toe produced crude hydrocarbons |
1,7 |
1,9 | 1,9 |
| Downstream, t/1000 t of refined oil | 2,9 | 2,9 | 2,8 |
|
Midstream, t/1000 transported oil |
0,5 |
0,5 |
0,5 |
In 2021, the average ratio of NOx emissions to the total volume of produced raw hydrocarbons in oil equivalent for the KMG Group amounted to 0.24 tons per thousand tons of produced CHC, while the IOGP average was 0.4. Compared to 2020, the specific emissions of NOx grew by 9% which is associated with the addition of new emission sources.
The average ratio of SOx emissions to the total volume of produced raw hydrocarbons in oil equivalent for the KMG Group amounted to 0.22 tons per thousand tons of produced CHC, while the IOGP average was 0.19. Compared to 2020, a 4% reduction in the specific emissions of SОx is registered.
Modernization of oil refineries
Sulfur production facilities were commissioned in all plants. In these facilities, hydrogen sulfide gas undergoes regeneration, while simultaneously obtaining an important production product – marketable sulfur. After the modernization, refineries produce more environmentally friendly products of European quality standards - class K4 fuel, following the requirements of the technical regulations of the Customs Union. The sulfur content in gasoline K4 is 10 times less than in the fuel produced before the modernization of the plant. This affects the reduction of pollutants in the exhaust gases of road transport and the improvement of air quality in populated areas.
Sustainable use of raw gas
Targeted actions across KMG Group between 2017 and 2021 have resulted in an 83% reduction in APG flaring. This has reduced emissions of pollutants and greenhouse gases from the flaring and dispersal of raw gas.
In 2021, the Company’s sustainable use of raw gas achieved 98%. The gas flaring rate is at 2.1 tons per 1000 tons of produced HCs (2.2 in 2020, 2.95 in 2019), 5% below the 2020 figure and 74% below the industry average IOGP value.
| Indicator | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Total raw gas flaring, mln m3 | 315,8 | 148,9 | 80,2 | 57,6 | 52,5 |
| Rate of beneficial use of raw gas, % | 85 | 93 | 97 | 98 | 98 |
| Raw gas flaring rate, tons per 1000 thousand of produced HCs | 11 | 6 | 2,95 | 2,2 | 2,1 |
In 2015, KMG supported the World Bank’s initiative of Zero Routine Flaring by 2030. The Company aims to minimize the flaring of raw gas. Raw gas flaring under this initiative is reported on an annual basis to the representative office of the World Bank in the Republic of Kazakhstan.