Reduction of GHG emissions

In view of consistent reduction of GHG (СO2) emissions, KPO set the following objectives for 2018:

  • to reduce the direct emissions of СО2 by 250 thous. tonnes through implementation of a number of production optimization and energy efficiency projects;
  • to ensure that the volumes of specific emissions do not exceed 67 tonnes of СО2 per thous. tonnes of hydrocarbons production.

In 2018, the KPO’s specific indicator of СО2 emissions totalled 63 tonnes of СО2/thousand tonnes of HC production. Owing to implementation of the six projects listed in Table № 32, the actual reduction of the GHG emissions exceeded the target by 23%. Methods and factors proposed in the validated GHG Emissions Reduction Programme for 2016-2020 have been used to calculate actual СО2 emissions reduction.

GHG emissions’ reduction measures in 2018

No.

Measures

Emissions reduction, tonnes/year

Status of completion in %

Target

Actual

1

Use of high-pressure separator when cleaning up the wells

181,972

236,047

130%

2

Use of high-pressure pump when cleaning up the wells

11,761

10,452

89%

3

Use of hydrocarbon-based fluid to stimulate the formation (new)

15,337

15,458

101%

4

Repair of valves of KPC flare headers

12, 299

26,414

215%

5

Adjustment of the steam flowmeter at processing train No. 4

6,502

11,209

172%

6

Upgrade of piping of Unit-2 compressors

22,129

7,778

35%

 

Total:

250,000

307,358

123%

Direct greenhouse gas emissions

Across KPO the direct greenhouse gas (GHG) emissions are regulated under the national quotas trading system in place since 2013. In 2017 KPO obtained quotas for 2018-2020 GHG emissions in the amount of 6,927,159 tonnes.

Quota was granted to KPO on the basis of specific emissions indicators (benchmark). Respectively, no base year for obtaining the quota has been officially established. To compare the GHG emissions dynamics and maintain the principles of reporting in this issue, we assumed the year 2017 as the base year (i.e. the year preceding the reporting year).

In accordance with the approved Monitoring Plan for 2018-2020, KPO performs quarterly assessment of GHG emissions for carbon dioxide (СО2), methane (СН4) and nitrous oxide (N2O). The emissions were assessed using the calculation method on the basis of the Company’s operations data (in terms of fuel consumption and laboratory data on fuel composition).

According to the verified GHG Emissions Inventory Report for 2018, the total volume of GHG emissions amounted to 1,893,447 tonnes in СО2-equivalent, of which СО2 contribution equalled to 1,730,915 tonnes of СО2-equivalent (91.4%), CH4 — 154,042 tonnes of СО2-equivalent (8,1%), N2O — 8,490 tonnes of СО2-equivalent (0.5%).

The information on the dynamics of generated GHG emissions is provided in table below. Compared to 2017, some decrease of the GHG emissions in 2018 was observed due to less running hours of injection compressors gas turbines due to increase in volumes of sour gas supply to Orenburg GPP. The main contributors (up to 82%) are emissions generated through combustion of the fuel gas at the gas turbines of the gas re-injection system, power plant gas turbines and high-pressure steam generation plant.

Dynamics of GHG emissions generated as a result of KPO production activities

Total volume of greenhouse gas emissions (tonnes of СО2 equivalent)

From fuel combustion at flares and incinerators

From fuel combustion at stationary sources

Fugitive emissions

Total GHG emissions in 2018

Total GHG emissions in 2017

Total GHG emissions in 2016

140,105

1,601,941

151,401

1,893,447

1,928,700

1,870,041

Indirect greenhouse gas emissions

KPO has its own Gas Turbine Power Plant aimed to provide electrical energy to its processing complex in the field and to the nearby settlements.

In 2018, KPO did not use electricity from the state electricity network. Accordingly, the volume of indirect GHG emissions at KPO was zero ton of CO2-equivalent.

At the time of the shutdown of the power plant, KPO field facilities may get connected to the electricity network of the West Kazakhstan region, which had occurred in previous periods. For instance, in 2017 the volume of indirect KPO GHG emissions out of total volume of GHG emissions amounted to 0.01%. The calculation of indirect GHG emissions is made by multiplying the actual volume of purchased electricity (MW/h) by the international emission factor (0.684 tonnes/ MW/h) for Kazakhstan.

As part of the GHG emission quota system of the Republic of Kazakhstan, such emissions are not accountable and not included in the KPO environmental reporting.

Specific greenhouse gas emissions

In 2018, the specific greenhouse gas emissions amounted to 69 tonnes per 1,000 tonne of hydrocarbons produced, which is similar to performance in 2017. Dynamics of the specific greenhouse gas emissions is shown in Graph below.

Dynamics of specific GHG emissions per unit of produced hydrocarbons (HC), 2016-2018

*Note: The data was sourced by Annual reports of the International Associations of Oil and Gas Producers (IOGP) — ‘Environmental Performance Indicators — 2016 Data’. The 2016 data was used for comparison purpose, as the 2017 IOGP Report was not available at the time this issue was prepared.

Table below shows the KPO GHG specific emissions comparing them with the specific emissions data provided by the IOGP. The actual specific GHG emissions in the Karachaganak Field in 2018 were lower than the European indicators by 25% and lower than the averaged international indicators by 54%.

Comparative analysis based on the specific GHG emissions per unit of hydrocarbons (HC) produced, in tonnes per 1,000 tonnes of produced HC

GHG description

IOGP data[1] (Europe)

IOGP data (in total)14

KPO data

2017

2017

2016

2017

2018

CO2 + CH4 + N2O (CO2е)

92

151

72

69

69

CO2

83

133

66

63

63