Power supply

For production needs within the Karachaganak field, KPO generates electrical power at its own Gas Turbine Power Plant (further as GTPP). Generated power is transmitted to the own production units throughout the Field, which include Karachaganak Processing Complex, Unit-2, Unit-3, Gathering system, Eco Centre, Pilot Camp, IT&T Data Centre in Aksai and the Karachaganak – Atyrau transportation system covering the oil pumping station in Bolshoi Chagan and block valve stations 1-26.

Four turbines, three of which are dual-fueled, are installed and operating at the KPO Gas Turbine Power Plant. In addition, KPO annually supplies electricity for the needs of the West Qazaqstan Oblast communities with capacity of circa 25 MW in winter and circa 20 MW in summer.

In 2022, annual boroscopic inspections of turbines were carried out at the GTPP to diagnose the internal condition of the turbine sections, as well as combustion chamber inspections and their replacement at turbine No. 4 in the latter half of October and turbine No. 1 in the latter half of November. The works were performed without delays, within the schedule and with good quality; materials and spare parts were provided in a timely manner.

Power supply to West Qazaqstan Oblast

As part of the Karachaganak Field Final Production Sharing Agreement (Art.I, Section 1.1.) KPO generates and exports power to West Qazaqstan Oblast.

KPO exports power to electricity suppliers, such as AksaiEnergo LLP and Batys EnergoResursy LLP, who in their turn supply the power to the communities and other end consumers in West Qazaqstan Oblast.

Throughout 2022, KPO exported from 20 to 35 MW to the regional grid, while the total volume of power export to WQO was equal to 246.3 mln kWh or about 28 % of Oblast’s total power consumption. Reduction of the power export by almost 9.2 % in comparison with 2021 was due to planned preventive maintenance in 2022, with terms not exceeding 15 days, and Turnaround at the Field's facilities. Terms and scope of planned preventive maintenance is regulated by the operating hours of the main GTPP equipment.

Supply of power and fuel gas in 2020–2022 is listed in Table 47.

In 2022, KPO used mainly its own gas for power generation. At the same time, in September-October, given the absence of KPO’s own gas due to shutdown of all field facilities for the planned TA, supplies for power generation for KPO and Oblast needs were ensured from a third-party supplier. Purchase of gas from a third-party supplier for the generation of power for the Oblast’s needs amounted to about 18.43 % of the GTPP’s total gas consumption. In addition to the aforementioned period, gas from a third-party supplier was delivered during certain periods of unstable operation of the fuel gas production unit at KPC plant area 5-339.

Tab. 47. KPO’s supply of power and fuel gas in 2020–2022

Description	UOM	2022	2021	2020
Power exported to WQO, including:	mln kWh	246.33	225.56	296.93
to AksaiEnergo LLP	mln kWh	26.28	26.28	26.35
to Batys EnergoResursy LLP	mln kWh	220.05	199.28	270.58
Use of fuel gas to generate power for WQO, including:	mln m³	84.74	75.88	99.35
KPO gas sale to generate power for WQO	mln m³	69.12	70.98	89.95
From the third-party supplier to generate power for WQO	mln m³	15.62	4.90	9.40

Power supply system

The local power system at Karachaganak Oil Gas Condensate Field consists of 110 kV power grids, which, according to lines of responsibility, are owned by three entities represented by KPO, AksaiGasProenergo JSC and West Qazaqstan REC LLP, as well as KPO power lines of 35 kV.

At the beginning of 2022, KPO Field Management set a goal to analyse the condition and develop measures to reduce accident rate and increase the stability of the in-field power system in order to significantly reduce and minimize production losses due to the influence of the power grid. Thereunder, a working group of KPO experts performed an analysis, which was approved by the management for further action. The work is ongoing with the third parties involved and the proposals received are being analysed.

In June 2022, during stormy weather with heavy rain and intense multiple lightning strikes, especially near the KPO plant and along the 110/35 kV overhead power line route, which caused overvoltages and insulation blackouts and subsequent mass shutdown of all 110 kV and 35 kV overhead lines, resulting in process shutdown at Unit 2, Unit 3 and gathering system.

Another accident on 110 kV overhead line No. 137 also occurred in June 2022, but that shutdown did not result in big losses in production.

In 2022, KPO focused on improving the quality of maintenance work on 110 kV and 35 kV overhead lines, during which detailed bottom-up inspections of the conditions of concrete bases of poles attachment were carried out, random top inspections of insulators conducted, the condition of wire and line fittings were checked, damaged elements were replaced, and additional insulator strings were installed to eliminate the faults and ensure high reliability of electric grids. The relevant works were done with West Qazaqstan REC and AGPE to eliminate the faults related to their lines, the works with AGPE are ongoing to ensure the quality of maintenance of 110 kV and 6 kV overhead lines is in accordance with the regulatory requirements.

Obligations imposed by the Law of the Republic of Qazaqstan on Support of the Use of Renewable Energy Sources (RES)

KPO generates power at its own GTPP, so our Company is classified as a contingent consumer in accordance with the Law of the Republic of Qazaqstan on Support of the Use of Renewable Energy Sources.

Contingent consumers are obliged to purchase power generated at RES facilities in amounts proportional to their share in total power generation. Thus, KPO, as a responsible entity, purchases appropriate volumes of RES power from the authorized company, “Financial Settlement Centre of RES” LLP, thereby complying with the legislative requirements aimed at supporting RES and making contribution to the Green Energy development in Qazaqstan. KPO purchased similar energy in the volume of 151,280,061 kWh in 2022, amounting to over 661 mln KZT.