Energy efficiency

KPO assumes responsibility to preserve favourable conditions for life-sustaining activity of future generations and make contributions in achieving the goal to decrease energy intensity and de-carbonization of the economy of the Republic of Qazaqstan. Ensuring energy resources extraction, while transitioning to low-carbon technologies, is one of the challenges we are faced with. Our current targets are to continue energy efficiency activities and their assessment, including application of the best available technologies, energy-efficient equipment and environmentally friendly materials.

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.

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 June 2022, 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.

In accordance with the ISO 50001:2018 requirements, KPO Energy Policy was developed to be used as the guiding principles to determine and evaluate the energy efficiency goals and targets. The KPO Energy policy is an integral part of the long-term field development plan and contributes to achievement of strategic goals and targets of the Company. This policy was signed by KPO General Director and it confirms the top management commitment to its stated obligations.

Concurrently, there is a global focus on personal approach to eco-friendliness, green thinking and conscious consumption. KPO supports this idea and, in its turn, has developed the “Green rules” to ensure more efficient application of the existing procedures of environmental and energy management systems and implementation of the KPO “Green office” concept.

KPO “Green Rules” focus on increasing environmental awareness, inspire demand for change, and motivate personnel to take action and reduce not only individual but also Company’s impact on the environment and contain clear and simple instructions for all KPO and contractors’ personnel and visitors on how to contribute to the improvement of the state of environment.

Energy consumption

KPO carries out an annual energy review and energy efficiency monitoring as part of the energy efficiency measures. Following the review, in 2022 KPO experienced an increase of energy intensity by 13.2 % against 2014 that was due to Turnaround activities at the KOGCF facilities and start-up of the 4th gas re-injection compressor. In 2022, the energy consumption totalled 1,109,277 tonnes of coal equivalent compared to 1,029,538 tonnes of coal equivalent in 2021. Table 35 shows the energy consumption volumes broken down by energy type.

Tab. 35. KPO energy consumption in 2020–2022

In 2022, the KPO energy intensity indicator was 1.18 GJ /tonnes of hydrocarbons, which was below the average energy intensity indicator of the companies that submitted their reports to the IOGP¹⁴ (1.4). The energy review outcomes provide basis for formalizing energy policy, setting energy saving and energy efficiency goals and targets and working out energy saving and energy efficiency measures in the Company.

Graph 23. Dynamics of energy intensity, 2020 – 2022

Energy efficiency activities

In accordance with the energy saving and energy efficiency legislation requirements, KPO conducts a mandatory energy audit every five years. 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”. Following the audit outcomes, KPO developed the plan for energy saving and energy efficiency improvement for 2022–2026.

In accordance with the approved plan for energy saving and energy efficiency improvement KPO completed the following activities in 2022:

• The work continues on replacing lamps with LED one at production facilities and Utilities areas. 1189 lamps were replaced in the Company facilities in 2022. The estimated savings in electrical power consumption per year from the replacement of lamps was about 114,570 kW*h. In the period of 2019 – 2022, 11,574 lamps were replaced and around 1,385,800 KW/h saved.
• The work continues on improving fuel gas reporting process:
  • an ultrasonic flow meter was installed in KPC area 5-340, which will allow to change the fuel gas metering scheme so that the data is generated from plant outputs and does not include process losses;
  • fuel gas flow meters were installed on the gas turbine of the re-injection compressors. The flow meters data will be used for internal control in the 8A-360-HM-01A/B fuel gas heater control system, turbine fuel gas treatment unit.
• Training sessions were held for production and corporate departments employees on the ISO 50001:2018 energy management system.

Improvement of environmental awareness and culture

"Green" thinking is actively promoted among KPO employees and contractors. Environmental awareness and culture activities stimulate careful attitude to the Company resources and raise personnel loyalty to introduction of green technologies and practices.

In 2022, KPO carried out a number of activities among KPO employees and contractors as part of the Programme on improvement of environmental awareness and culture.

Mandatory training course “The New Environmental Code. KPO Transition to Green concept” was launched on 5 June, 2022, as part of the 50th anniversary of the 1972 Stockholm convention as a result of which the World Environment Day was declared on 5 June. In 2022, the World Environment Day topic was “Only one Earth”, which highlighted the need of sustainable lifestyle in harmony with nature. From the training video course, the employees learned how the Company activity will be improved in view of development of the KPO Energy transition and last changes to environmental legislation of the Republic of Qazaqstan and why it is important for each of us. 3,700 employees completed this training, it is 91 % of their total number.

The V Uralsk Green Forum “Green Transformation: Trends and Challenges” was held in Uralsk on 10 June. Over 165 participants took part in the forum: among them were state authorities of republican and regional levels, oil and gas companies, industry and specialized associations, experts in ecology and green transformation, republican and regional mass media, representatives of the WQO students. As part of the event there were conducted Eco-Talks “Green course for sustainable future” for 45 students of West Qazaqstan Oblast and interactive exhibition “Only one Earth”. The resolution was adopted as a result of the UGF. Forum materials are available for review at https://ugf.kz/.

From 11 to 17 November, as part of World Energy Saving Day, KPO Energy Week was held. Professional speakers from various industries of energy saving and green transformation were invited, who shared the Generational theory with Company employees: from bonfire to renewable energy sources, about renewable energy sources challenges and development in Qazaqstan, what processors are operating in WQO and where wastes can be handed over for recycling, also discussed transition to KPO Green Strategy within the KPO-365 Strategy, projects on carbon capture and storage, virtual energy, importance of energy efficiency for KPO and Green Office principles. In addition, as part of the KPO Energy Week, about 40 children of the Company employees learned the energy saving concept in a playful way and received presents – eco-shoppers. Such fascinating workshop “Energosha’s journey” was conducted by eco-coach, trainer Damir Karimov.

Within republican environmental campaigns “Birge taza Qazaqstan”, “World CleanUp Day” and “No waste on Nature”, KPO employees were actively involved in volunteer clean-up days which are aimed to clear city areas and territories adjacent to Aksai and Uralsk. In 2022, a record number of clean-up days were registered in comparison with previous years, over 300 Company employees participated in these activities. It is expected that such campaigns will contribute to changing public views and attitudes towards waste management and to minimize its generation and increase opportunities for its recycling.

"Green Office" Project

Starting from 2021 KPO launched the project on introduction of "Green Office" principles.

In 2022, introduction of the pilot project “Green Office” was continued, where 2 more KPO offices were included – Samal-2 and Aliya Training Centre. As part of environmental awareness improvement, KPO held environmental breaks with participation of about 300 employees. Waste segregation was introduced in these offices.

Big number of observations collected from the HSE cards system about the use of single-use disposable plasticware and violation of the principles of waste segregation fundamentals. In this regard cancellation of disposable plasticware (plates and cutlery) use in BC Karachaganak, BC Chagala, BC Nurdaulet and Samal-2 offices was initiated.

As a result of these activities, the use of disposable plasticware in four offices decreased by an average of 58 %.

"Green Office" project in other KPO offices is scheduled to be introduced starting from 2023. Having an unconditional social and environmental focus, the "Green Office" project aims to have a positive impact on the number of social, environmental and economic aspects of KPO’s sustainable development, also with positive impact on the company’s stakeholders.