Nostrum recognises that hydrocarbon exploration and production is a major contributor to GHG emissions and consequently we have a responsibility to work to address climate change. One of our key CSR goals in 2018 is to better understand and respond to this challenge.
Nostrum and its subsidiaries comply with all applicable environmental legislation and regulations and Nostrum has been reporting on GHG emissions since 2011. We actively target a reduction in our emissions intensity ratio and this continues to be a key commitment in our approach to environmental protection.
Nostrum management are committed and ready to minimise their environmental footprint through a yearly GHG emissions reduction strategy which allows us to plan for the subsequent introduction of energy and resource saving measures. To meet these ambitious targets, we have secured the commitments of our managers and contractors to provide effective assistance in improving energy efficiency and reducing GHG emissions. Initiatives include the development of a waste heat recovery system for GTU3 which will utilise waste heat recovered from sales gas compression units, refrigeration compression units and stabiliser compression unit for process and building heating, resulting in total recovered energy of up to 274.8 MWh/day. This recovers 230 MWh/day for process heating and 62.4 MWh/day for building heating. The transfer of well heating furnaces from diesel fuel to gas has resulted in an average GHG reduction of 59%. Additionally, the commissioning of a 26 MW gas turbine power station has further reduced the environmental burden by electrifying the drilling process and, accordingly, reduced GHG emissions by 39%.
Our 2018 reduction targets include:
- Maintain total GHG emission levels up to 250,000 tCO2
- Conversion of three further heating ovens from diesel to gas
- Planting of 200 trees
We do acknowledge that climate change has the potential to affect our business, including through:
- Physical disruption to operations due to changing weather conditions
- The impact of legislative and policy responses to address climate change
- Technology to help reduce emissions
- Changing energy market demands into the future
However, we must also balance our climate change responsibilities with our commitments to our shareholders and other stakeholders. We believe in the sustainability of our business and see a continuing demand for the company’s products into the foreseeable future. We do not believe that a fundamental change in business strategy would be in the best interest of the company or our stakeholders, particularly given the economic importance of our activities in the communities in which we operate.
Throughout 2018 we will continue to actively consider our approach to climate change to ensure we maintain the highest standards of practice in relation to our environmental and risk management.