KPO Sustainability Report 2021

Energy efficiency

As part of the energy efficiency activities, KPO conducts energy analysis and energy efficiency monitoring. Based on the analysis results, KPO energy intensity has been relatively stable in the period of 2014–2020 with 1-2 % variation. In 2021, there was an increase in KPO energy intensity by 6.5 % compared to 2014, which is associated with a decrease in hydrocarbon production due to limited gas supplies to the Orenburg Gas Processing plant and shutdowns at Unit 2.

The benchmarking has shown that KPO’s energy intensity is below the average indicator of the companies reporting to IOGP. The results of this analysis have shaped the basis for defining our energy policy, goals and objectives, and measures for energy saving and efficiency improvement of the Company.

In order to minimize energy efficiency risks and impact of the Company, we have set a number of targets. The results of their implementation are presented further in the text.

Why is it important to us?

To ensure production of hydrocarbons while making the transition to low-carbon technologies is one of the challenges faced by KPO.

Our targets include implementation of energy efficiency measures and their evaluation, covering best available technologies, energy-saving equipment, and eco-friendly materials.

Tab. 35. Targets in energy efficiency

Our 2021 targets

Target achievement

Actions taken in 2021

Targets for 2022

Complete the energy audit and develop a five-year energy saving and energy efficiency improvement action plan

Partially completed

Energy audit completed. A draft five-year energy saving and energy efficiency improvement action plan has been prepared.

Conduct an annual energy analysis of the Company and continue monitoring energy efficiency indicators for equipment/processes that have a material impact on KPO’s energy intensity

Conduct a surveillance audit of the Energy Management System for compliance with the ISO 50001:2018 standard

Completed

A surveillance audit of the Energy Management System against the ISO 50001:2018 standard was successfully conducted in August 2021.

Conduct a surveillance audit of the Energy Management System against the ISO 50001:2018 standard

ENERGY MANAGEMENT SYSTEM

The ISO certification contributes to enhancement of the KPO reputation as a reliable partner to the Republic of Qazaqstan that takes appropriate actions to meet both regulatory requirements and international standards.

In August 2021, KPO has successfully conducted a certification audit against the ISO 50001:2018 standard. Following the audit, the KPO Energy Management System was recognized as corresponding to the international standards.

Energy consumption

In accordance with the energy saving and energy efficiency legislation requirements, KPO conducts a mandatory energy audit every five years.

The targets of an energy audit is to assess the Company’s efficiency in using fuel and energy resources and to develop measures ensuring rational energy consumption and increasing energy efficiency.

In 2021, a mandatory energy audit was completed at KPO by a specialized company in line with which, the overall KPO’s energy saving and energy efficiency activities were rated as 'excellent'. Also, energy efficiency improvement measures were proposed, featuring economic feasibility and practical application. One of the measures was the installation of a waste heat boiler at the gas turbine power plant is scheduled to include in the Energy Saving and Energy Efficiency Action Plan for 2022–2025.

In 2021, the energy consumption totalled 1,029,538 tonnes of coal equivalent compared to 1,067,135 tonnes of coal equivalent in 2020. The decrease in energy consumption is related to the repair works on gas turbine generators. Table 36 shows energy consumption volumes broken down by energy type.

Tab. 36. KPO energy consumption in 2019 – 2021

Type of energy

Unit of meas.

Energy consumption, physical units

Energy consumption, tonnes of coal equivalent

Energy consumption, GJ

2021

2020

2019

2021

2020

2019

2021

2020

2019

Fuel gas

Thous.m3

832,863

863,029

826,806

1,026,088

1,063,251

1,018,625

30,074,639

31,163,893

29,855,886

Electric power (purchased)

MW/h

6,710

6,236

7,244

825

767

891

24,181

22,482

26,115

Diesel fuel

m3

705

1,188

739

888

1,498

932

26,027

43,905

27,468

Gasoline

m3

228

199

226

251

220

249

7,357

6,439

7,301

Heating (in rented offices)

Gcal

10,388

9,781

8,731

1,486

1,399

1,249

43,555

40,994

36,595

TOTAL

 

 

 

 

1,029,538

1,067,135

1,021,946

30,175,759

31,277,713

29,953,365

In 2021, the energy intensity indicator was 1.10 GJ /tonnes of hydrocarbons, which was below the average energy intensity indicator of the companies that submitted their reports to the IOGP9 (1.4).

9 Data source: Annual reports of the International Association of Oil and Gas Producers (IOGP) – ‘Environmental Performance Indicators – 2020 Data’
Graph 22. Dynamics of energy intensity, 2019 – 2021

Energy saving activities

Pursuant to the approved Energy Saving and Energy Efficiency Improvement Action Plan, KPO took the following actions in 2021:

  • The activities on replacement of traditional lamps with LEDs bulbs at production and ancillary facilities were continued. In 2021, 4,917 lamps were replaced at the Company`s facilities. Estimated economy of energy consumption from the traditional lamps replacement was about 754,600 KW/h. In the period of 2019 – 2021, 10,385 lamps were replaced and around 1,271,230 KW/h saved.
  • Enhancement of fuel gas accounting continued including:
    • installation of an ultrasonic flow meter at KPC section 5-340 – planned for III quarter of 2022;
    • installation of the metering device on the gas turbine of the re-injection compressors.
  • Training sessions were held for Production Department’s employees on the energy management system ISO 50001:2018.
CASE STUDY 3:

KPO ‘GREEN’ OFFICE

Context / short description:

In 2021, KPO continued its activities on implementation of the ‘green’ office principles. The implementation of the ‘green’ principles contributes to maintaining and improving environmental culture, raising awareness of employees of the importance of the environmental issues and conscious care for the environment.

Besides, the ‘green’ office concept motivates employees to participe in volunteer projects and development of eco-friendly behavior.

Goal:

The targets of the ‘Green office 2021’ programme are:

  • reducing the environmental footprint of the Company’s offices,
  • promotion of environment related ideas, and
  • increasing loyalty of employees to implementation of ‘green’ technologies and practices.

Solutions / actions:

In 2021, the target group for the pilot project ‘KPO Green office’ included Uralsk Kurmangazy office and Karachaganak Business Centre in Aksai. In these offices separate collection of plastic waste was put into practice followed by handover for recycling.

The project was launched by conduction of training and building a team of eco-volunteers. Over 200 KPO employees attended the eco-training in 2021, which included:

  • Training modules of the ‘green’ office programme for eco-volunteers who, in their turn, shared the obtained knowledge with their colleagues.
  • Eco-breaks for discussion of important issues on reduction of the ecological footprint in the offices and contribution of each employee into creation of eco-friendly office.
  • Environmental seminars on ‘Management of material losses through waste management, or beneficial eco-friendly habits’ with Damir Karimov – motivational speaker, environmental and healthy lifestyle coach. As a result of the seminar, many of the employees expressed their wish to become eco-volunteers in their departments.

The following indicators were selected for monitoring environmental performance of the offices:

  • Electricity consumption (kW);
  • Cold water consumption (m3);
  • Quantity of plastic waste generated (kg);
  • Quantity of waste paper (kg);
  • Quantity of used plastic tableware (pcs).

Results:

In December 2021, KPO has won the Second Republican Contest ‘Green office 2021’ in the nomination for industrial companies.

The ‘Green office 2021’ contest was held upon an initiative of the Coalition for ‘green’ Economy and G-Global development with the support of the Ministry of Environment, Geology and Natural Resources of the Republic of Qazaqstan and the OSCE Programme office. Objectives of the contest are promotion of eco-friendly life style, “green” and low-carbon technologies, improvement of environmental behavior in life, extension of best practices and technology solutions, as well as assistance in arrangement of comfortable labour conditions for creating respect to the environment. Over 100 organizations took part in this contest.

In 2022, the ‘green’ office activities will be continued in other KPO offices.

Above all, the ‘Green office’ project is not only a popular social trend, but a need to reduce negative impact on the environment by people and organizations.