JSC NC «KazMunayGas» (hereinafter - KMG) and Chevron Corporation (NYSE: CVX), through its subsidiary Chevron Munaigas Inc. (hereinafter - Chevron) announced the signing of a Memorandum of Understanding (hereinafter - the Memorandum) to explore potential projects in the field of reducing carbon emissions in Kazakhstan. KMG and Chevron plan to explore potential opportunities for implementing joint projects in the field of carbon capture, utilization and storage (CCUS), the use of low-carbon hydrogen, the management of methane emissions and leaks, energy efficiency and the introduction of mechanisms for internal carbon pricing.
Under the existing memorandums between KMG and ENI, the companies began joint research and implementation of pilot projects in the field of alternative energy. One of the three areas of bilateral collaboration, is the implementation of projects for the construction of renewable energy facilities in the territory of Kazakhstan. The electric power generated there may be used at the enterprises of KMG Group, among other things. In addition, KMG and ENI signed a Memorandum of Understanding on cooperation and development of agricultural and hydrogen projects in Kazakhstan. The memorandum defines the framework for feasibility studies for hydrogen production and agricultural projects for oil seed crops cropping in Kazakhstan for further processing and biofuel production. ENI will also provide knowledge transfer through on-the-job training and mentoring with the involvement of Kazakh citizens and Kazakh organizations.
On June 8, 2022 KMG and the European Bank for Reconstruction and Development («EBRD») signed a
Memorandum of Understanding on strategic cooperation in the field of decarbonization. The purpose
of the Cooperation is to support KMG to reduce the carbon footprint as part of the implementation
of KMG's approved Low-Carbon Development Program.
Joint work will be directed to the following areas:
1) Building capacity to understand the practical application of TCFD recommendations, international best practices in TCFD reporting;
2) Analysis and assessment of the potential of low-carbon hydrogen energy industry development, including market research, as well as development of proposals for the implementation of pilot projects with possible financing (2022-2023);
3) Support in the implementation of the Carbon Capture, Storage and Use (CCUS) project in Kazakhstan, including technical assistance from the EBRD in the development of a pre-feasibility study;
4) Improvement of energy efficiency, implementation of energy saving measures and assessment of the potential for the use of renewable energy sources;
5) Development of a Low Carbon Pathway (LCP) that is consistent with the goals of the Paris Agreement and contains a detailed action plan for decarbonization in the 2050s;
6) Analysis of opportunities for EBRD financing of climate risk management projects;
7) Exchange of knowledge and experience between the Parties in the above areas.
On June 9, 2022, the Ministry of Energy of the Republic of Kazakhstan, Samruk-Kazyna JSC, NC «KazMunayGas» JSC and Total Eren S.A signed an Agreement on Principles for the Construction Project of a 1 GW Wind Power Plant (WPP) in the Zhambyl region.
The agreement was signed following the results of work within the previously signed Memorandum of Understanding between the said parties dated October 28, 2021.
The location for the construction of a wind farm with a total capacity of 1 GW with an energy storage system (with a capacity of at least 100 MW / 200 MWh) is determined near the village of Mirny in the Zhambyl region. The wind farm project will be implemented in stages. The full completion of the project is planned for the period from 2024 to 2026.
In addition, the parties plan to establish a Center of Excellence in the field of operation of large renewable energy facilities and electricity storage systems in Kazakhstan with the training of local specialists.