Twenty Years Of Successful Partnership
The Green Bridge to the Future of Karachaganak
At the end of May, on the eve of the opening of the International Exhibition EXPO-2017 in Astana, in Uralsk, the administrative center of the West-Kazakhstan Region, on the initiative of Karachaganak Petroleum Operating B.V. that is operating in the region, the first International Uralsk Green Forum (UGF) was held. The mission of the Forum is to promote, with the support of the State bodies of Kazakhstan, the concept of «green» economy in the country.
KPO Vice General Director Marat Karimov at the Uralsk Green Forum
On the agenda of the Uralsk Green Forum, timed to coincide with the World Environment Day, there was discussion on topical issues of ecology and energy preservation in the context of the promotion of the Green Economy Concept, as well as drawing up recommendations on recycling and utilization of associated gas. This issue is relevant to all oil producing countries in the world in terms of global trends on transition of the economy at low-carbon and energy efficient development path. The participants of the Forum also focused on modern approaches and solutions in the field of waste management and improving the regulatory and legal framework in the field of environmental protection.
The Forum was attended by more than 150 delegates and experts in the field of environmental protection, green technology, energy efficiency, waste management, heads of ministries and departments, representatives of central and regional State authorities, top managers of oil and gas companies, heads of public associations and industry associations.
«The Government of the Republic of Kazakhstan fully supports the joint efforts of the State, business and the public on the implementation of the strategy for the development of «green» economy and improvement environmental culture, said the Prime Minister Bakhytzhan Sagintayev in his welcoming address to the participants of the Forum, - I would like to thank the regional State authorities and oil & gas companies for active and productive collaborative work in this field. The initiative to hold a meeting in Uralsk for all parties interested in matters of environmental protection is especially valuable. I think this is a good example of the discussion of regional and global issues at a high professional level.
This Forum is a discussion platform of the new format in the field of the rational subsoil use, environmental management and innovations that are conducive to the preservation of natural resources, strengthening of ecological safety, improvement of the quality of life of the population.
WKO Akim Altay Kulginov addresses the participants of the Uralsk Green Forum
I am sure that it will pass in a constructive way, will bring together the national environmental services, oil & gas companies and society in the protection of nature and the preservation of its resources. I am convinced that together we will be able to identify the pressing issues and propose new solutions in order to improve the environmental quality of life in Kazakhstan», said the Prime Minister, addressing the Forum participants.
Renato Maroli, General Director of KPO, opening the debate, said: «This Forum, organized with the support of the Ministry of Energy of the Republic of Kazakhstan, Akimat of West-Kazakhstan Region and Specialized Environmental Prosecutor’s Office of West-Kazakhstan Region, will help to create a platform for the discussion of a modern approaches, scientific research experience in the field of environmental protection and exchange of information on the latest technologies in energy saving and energy efficiency».
The Akim of West Kazakhstan Region Altay Kulginov noted in his speech: «carrying out the international ecological Uralsk Green Forum promotes effective interaction between resource users and authorities».
Within the framework of the Forum an interactive discussion was organized on the following subject: «Perspective and effective interaction of stakeholders towards the development of a green economy» in the question-and-answer format. The Forum participants discussed the issues of contribution towards the intensive development of environmental focus in the oil & gas industry, constraining factors for the introduction of energy-saving and energy-efficient technologies and possible solutions, support of Kazakhstani producers and representatives of small and medium-sized businesses, presenting their products and services in the field of environmental protection, green technologies and waste management.
WKO Akim Altay Kulginov and KPO General Director Renato Maroli at the Uralsk Green Forum
For the first time the question on the environmental well-being of the planet was announced in full voice in 1992, during the Earth Summit. And in 2012 at the UN Summit Rio+20 the President of Kazakhstan Nursultan Nazarbayev put forward the initiative, supported by the world community, of the Green Bridge Partnership Programme whose mission is to manage the «green» economic growth through the promotion of international cooperation, assistance in the transfer of technology and exchange of knowledge.
At the national level Kazakhstan has already contributed to the implementation of this Programme by adopting the concept of transition to the «green economy». Kazakhstani subsoil users have joined the Green Bridge Programme. But what is happening today directly at the fields? How responsibly the oil producers follow the rules assigned in the Programme? So far not the all participants fully disclose the information about its implementation. The International Consortium Karachaganak Petroleum Operating B.V. has provided detailed information on this issue.
«Kazakhstan is a member of the Global Gas Flaring Reduction Partnership (GGFR) and is taking active measures to reduce flaring, - say the experts of the Company. - KPO successfully implements a program of associated gas processing and gas utilization indicators for the period between 2006-2016 remain consistently high. For comparison: in 2006, 69 million cubic meters were flared, 99.42 percent utilized, in 2016 year 29 million cubic meters of gas flared, 99.84 percent utilized. This once again confirms the world-class level in comparison with the targeted indicator approved by the regulatory authorities of the Republic of Kazakhstan within the framework of the Program on development of associated gas processing in 2016, which amounted to 99.6 percent».
The utilization of associated gas at Karachaganak is implemented using the gas re-injection into the reservoirs for pressure maintenance, selling crude gas and producing fuel gas in order to produce electricity for needs of KPO and sale to the local utility distribution companies.
«In 2016 the amount of flared gas equaled to 0.16 percent of the total volume of gas produced by KPO, or 0.97 tonnes per 1 thousand tons of extracted raw materials. Based on available data of the world reports for 2015, the similar worldwide average indicator is 13.6 tons per thousand tons, the European average indicator is 3.8 tons per thousand tons. This confirms a very high level of effectiveness of KPO’s efforts on this indicator among the world and European oil & gas companies, - said the experts. - Despite this, KPO continues the search and implementation of the additional emission reduction technologies, especially in the field of wells testing and clean-up.
In 2016, KPO actively used separators and high pressure pumps, causing the amount of liquid hydrocarbons flaring to decline by 72 thousand tons, and the volume of gas flaring was lowered to 38 million cubic meters.
Based on the results of last year, while implementing five technological measures 337 thousand tons of CO2 were reduced, which is 58 percent higher than the planned value. The main contribution to obtaining this result was made possible through the use of technology for oil and gas re-entering when testing and cleaning-up wells.
KPO does not perform permanent, routine associated and natural flaring. Almost 99.84 percent of gas is utilized. Flaring at sites occurs for safety reasons, during the equipment scheduled preventive repair, commissioning of new equipment, as well as during the failures, and equipment failure in order to prevent accidents.
«At Karachaganak in 2016 as a result of equipment failure, alarms, power outage and similar situations 1.035 million cubic meters of gas were burnt that is only 0.006 percent of the total volume of produced gas. Based on the safety requirements at the current level of technology development, flare relief during any malfunction in order to minimize the potential risk of an accident is the only possible outcome», say the experts of the Company.
In April of 2016, the additions and amendments have been made in the Law of the RoK «On subsoil and subsoil use», calculation methods and other legal documents that allow subsoil users to regulate gas flaring associated with technological failures, failures and malfunction of technological equipment. These amendments include assignment to a technologically inevitable flaring of the cases of flare relief due to failures, malfunction of technological equipment. In accordance with these amendments, emissions of pollutants from gas flaring associated with technological breakdowns would not be «excessive». The amendments came into force in May 2016.
KPO confirms that it will continue to focus their efforts on minimizing the flaring volumes, taking into account the current level of technology development. In addition a strict control over air quality will be carried out in order to avoid the negative impact of emissions from flaring on the environment. The Company hopes that its example would be followed by other Kazakhstani oil & gas sector operators.