Action Plan for the implementation of the Low-Carbon Development Program for the period 2022-2031
In 2022, the Action Plan was developed and approved for the implementation of the Low-Carbon Development Program of JSC NC "KazMunayGas" for 2022-2031, approved by the KMG Board of Directors on November 4, 2021
The Action plan has sufficient reserve to achieve the goal of carbon footprint reduction (-15% by 2031 from the 2019 level, which is a reduction of 1.6 million tons of CO2)
Share of direct emission reductions from planned measures by 2031
Share of indirect emission reductions from planned measures by 2031
Breakdown of estimated greenhouse gas emission reductions by business direction
JSC NC "KazMunayGas" (hereinafter - KMG) and Chevron Corporation, through its branch "Chevron Munaygas Inc." (hereinafter - "Chevron") signed a Memorandum of Understanding to explore potential projects for carbon emissions reduction in Kazakhstan.
KMG and Chevron are working together through established working groups on the following areas:
- Potential opportunities for joint carbon capture, utilization and storage (CCUS) projects;
- Low-carbon hydrogen usage;
- Methane emissions and leaks management;
- Energy efficiency improvement;
- Implementation of internal carbon pricing mechanisms.
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. At that, 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.
European Bank for Reconstruction and Development
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.
At the moment, joint work is carried out in the following areas:
1) 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);
2) As part of measures to improve international rankings on climate risk management and sustainable development, with the support of the EBRD, KMG plans to implement reporting standards in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures TCFD (Task Force on Climate-related Financial Disclosures).
The Task Force on Climate-related Financial Disclosures (TCFD) is a standard for reporting that discloses information about the potential impact of climate change on the global economy, involving two separate aspects of the issue:
1) the risks that climate change brings;
2) the risks of a transition to a low-carbon economy (particularly relevant to the oil industry).
One of the key differences between the TCFD recommendations and other standards (GRI, CDSB, CDP, SASB, etc.) is in the approach itself: it is the disclosure of the climate impact on the company, not the company's environmental impact - something that most reports discloses today.
On 9 June 2022, the Ministry of Energy of the Republic of Kazakhstan, Samruk-Kazyna JSC, JSC NC “KazMunayGas” and Total Eren S.A entered into the Agreement in Principle under the project for the construction of a 1 GW wind power plant (WPP) in Zhambyl region.
The Agreement was signed as a result of work performed under the previously signed Memorandum of Understanding between the said parties as of 28 October 2021.
The Agreement provides for the location to construct the 1 GW wind power plant with an energy storage system (capacity of at least 100 MW/200 MWh) near the village of Mirny in Zhambyl region. Certain actions to be taken by the Parties to implement the project were also determined.
The WPP project will be implemented in stages. The project is scheduled for completion between 2024 and 2026.
In addition to the above, the Parties are going to establish a Centre of Excellence in the operation of large RES facilities and electricity storage systems in Kazakhstan to train local specialists.