Air Protection

KMG places top priority on air protection, as pollution levels directly affect public health and the environment. As part of its environmental policy, the Company consistently reduces pollutant emissions, implements modern technological solutions and automated monitoring systems, and carries out measures to reduce gas flaring.

Emissions Management and Equipment Modernization

A key area of KMG’s environmental activity is reducing atmospheric emissions through equipment modernization and the implementation of environmentally efficient technologies. This includes replacing fuel oil with natural gas in process furnaces, using next-generation additives, and implementing landscaping and site improvement programs.

Additional work includes burner modernization, optimizing equipment operation modes, and reducing equipment runtime. Cleaning of exhaust gases from harmful compounds, expanding gas processing capacity, and constructing appropriate facilities help reduce pollution levels. Regular monitoring detects potential leaks, ensuring prompt response.

One of the key measures is the installation of floating roofs on storage tanks, which minimize the formation of volatile fractions by eliminating free space above the stored product.

As part of a technical upgrade program at the Atyrau Oil Refinery, 36 burners were replaced in 2024 on the EDP-AVT-2 (Electric desalination plant, atmospheric-vacuum tube) processing unit. The new burners, produced by International Combustion Equipment S.r.l., are equipped with ignition systems and flame monitoring sensors, increasing efficiency and reducing pollutant emissions. Additionally, new flow meters, electric-drive dampers, gas filters, oxygen analyzers, and variable-frequency draft fan drives were installed, optimizing combustion and reducing emissions.

KazTransOil JSC completed the installation of a pontoon in a 20,000 m³ tank at the Kasymov oil refinery. This device isolates the oil surface from the gas space, reducing hydrocarbon evaporation and decreasing air pollutant emissions by 80 %. Overall, in 2024, KazTransOil JSC reduced pollutant emissions at its facilities by 7 % compared to 2023.

Emissions Monitoring and Automated Control Systems

KMG conducts comprehensive environmental monitoring, including air, water, and soil quality control, to minimize the environmental impact of its operations. The Company regularly performs production environmental control, and measurement results are submitted quarterly to government supervisory authorities.

Special attention is paid to air quality monitoring in areas near production facilities, including installing stationary observation posts at the boundaries of sanitary protection zones. These measures ensure timely response to pollution level changes and enable corrective actions.

In accordance with the Environmental Code of the Republic of Kazakhstan, since January 1, 2023, facilities in Category I are required to have an Automated Emissions Monitoring System (AEMS). AEMS allows real-time tracking of emissions from major stationary sources and transmits data to government authorities.

AEMS has been implemented at KOA, MMG, Atyrau Refinery, Pavlodar Refinery, and PKOP facilities, and installation and commissioning are nearing completion at KPI. Environmental monitoring instruments measure the concentrations of sulfur oxides/sulfur dioxide, nitrogen oxides, soot, and carbon monoxide in the emissions of furnaces and boilers.

Data is updated every 20 minutes and sent to government regulatory bodies.

The implementation of automated monitoring systems enables real-time emissions control and adjustment of equipment operation parameters to reduce environmental impact. In this way, KMG applies a comprehensive approach to air protection by combining production modernization with enhanced emissions control.

Air Pollutant Emissions

GRI 305-7

In 2024, KMG continued to implement measures to reduce atmospheric pollutant emissions, leading to further reductions. Total emissions across the Group amounted to 116.765 thousand tonnes, a 2 % decrease compared to 2023.

• Nitrogen oxides (NOx): Emissions totaled 15.218 thousand tonnes, maintaining the previous year’s level.
• Sulfur dioxide (SOx): Emissions increased to 11.686 thousand tonnes due to changes in operation modes of some production units.
• Carbon monoxide (CO): Emissions decreased by 6 % to 21.500 thousand tonnes due to process optimization.
• Other pollutants: Emissions amounted to 68.361 thousand tonnes, showing a steady decline due to the implementation of environmental protection measures.

In 2024, the average ratio of NOx emissions to the total volume of hydrocarbon production in oil equivalent across the KMG Group amounted to 0.39 tonnes per thousand tonnes of hydrocarbon production, while the average IOGP benchmark was 0.36. Compared to 2023, the specific NOx emissions increased, which was due to the addition of new emission sources from new operators as well as activities of contracting organizations.

The average ratio of SOx emissions to the total volume of hydrocarbon production in oil equivalent across the KMG Group amounted to 0.23 tonnes per thousand tonnes of hydrocarbon production, while the average IOGP benchmark was 0.09. This KMG indicator remained at the same level as in 2023.

Efficient Use of Associated Gas

KMG and its subsidiaries adhere to the principles of environmental responsibility by implementing comprehensive measures to control emissions of pollutants and greenhouse gases. One of the Company’s priorities is the reduction of flaring of associated gas, in line with the goals of KMG’s Environmental Policy and international sustainable development standards.

As part of its strategy to minimize flaring of associated petroleum gas, KMG actively develops programs for its utilization and beneficial use. As a result of these efforts, in 2024, the associated gas utilization rate reached 98.9 %. The gas flaring intensity amounted to 1.45 tonnes per 1,000 tonnes of hydrocarbon production (HCP), which corresponds to the 2023 level (1.4) and shows a decrease compared to 2022 (1.5). This indicator remains 84 % below the industry average established by the International Association of Oil & Gas Producers (IOGP), where the average gas flaring level is 8.8.

A slight increase in the volume of gas flaring in 2024 compared to the previous year is attributed to the commissioning of new fields in the Aktobe, Mangystau, and West Kazakhstan regions. At the same time, the Company continues to work on further reducing flaring volumes through the expansion of gas processing infrastructure and its efficient use.

KMG also participates in global initiatives to reduce gas flaring. Since 2015, the Company has supported the World Bank’s “Zero Routine Flaring by 2030” initiative, which aims to minimize emissions and promote the rational use of resources. As part of this initiative, KMG annually reports its raw gas flaring volumes to the World Bank Representative Office in Kazakhstan.

The Company continues implementing projects for processing associated petroleum gas for use in production processes, including heat and power generation. These efforts not only reduce pollutant emissions but also improve production energy efficiency.