GHG Reporting

Our greenhouse gas (GHG) reporting

Since 2011 Nostrum has been monitoring and reporting on its GHG emissions in accordance with RoK regulatory requirements. From 2013 UK company law requirements regarding GHG reporting have also been followed.

GHG data is reported from all emission sources, as required under the Companies Act 2006 (Strategic Report and Directors’ Report) – Regulations 2013. The Company’s GHG reporting period is aligned with the period in respect of which the Directors’ Report is prepared. No responsibility is taken for any emission sources which are not included in the consolidated financial statements.
The results of the GHG emissions inventory are presented in the format recommended by the GHG Protocol.

Direct GHG emissions (Scope 1)

The baseline in the GHG emissions allocation plan was set as the mean value of the total emissions for the years 2013-2014 (in carbon dioxide emissions equivalent). According to the established limit, GHG emissions for 2017 should not exceed the baseline.

The following direct GHG emissions (Scope 1) sources have been identified: flares, heaters, incinerators, boilers, gas turbine plants, electric power stations, compressors and fugitive emissions.

Historically, the major part of stationary combustion emissions was attributed to flaring of associated gas at the Oil Treatment Unit (OTU) and at the Gas Treatment Facility (GTF). The situation has changed considerably since the GTF was completed.

Total direct GHG emissions (Scope 1) subdivided by gas types and by source types are summarised in Tables 1 and 2.

Table 1: Scope 1 GHG emissions subdivided by gas types (mtCO2e)

2013

2014

2015

2016

2017

Carbon dioxide (CO2)

188,604.0

236,556.0

208,466.2

195,453.3

242,275.6

Methane

28,693.6

28,693.0 27,424.8

10,817.0

10,723.4

Nitrous oxide

165.7

165.7 124.3

1,045.7

1,305.4

Hydrofluorocarbons

16.1

16.1 16.1

33.6

27.6

Total

217,479.4

264,121.2

222,546.2

207,349.6

254,332


GHG emission structure is shown in Table 1. The composition of the GHG emissions predominantly consisted of carbon dioxide and methane.

Table 2: Scope 1 GHG emissions subdivided by source types (mtCO2e)

2013 2014 2015 2016 2017

Stationary combustion

212,612.3

260,124.4

205,701.9

195,576.1

243,001.1

Mobile combustion

2,876.3

2,135.2

1,498.2

757.9

434.9

Fugitive sources

1,990.8

1,861.6

15,346.1

11,015.6

10,896

Total

217,479.4

264,121.2

222,546.2

207,349.6

254.332

Stationary combustion sources formed the major portion of emitted GHG’s. The reduction in emissions from mobile combustion is related to the fact that the majority of vehicles were transferred to a transport services company.

Indirect GHG emissions (Scope 2)

Nostrum does not use purchased steam, heating or cooling. Electrical power is the only such purchased power related to indirect GHG emissions, and it is supplied to Nostrum facilities via the Zelenovskaya distribution network (ZapKazREK JSC), through its subsidiary Batys Energoresursy LLC. The regional emission factor (0.27086 tCO2/MWh) was calculated using Methodological Guidelines for the Calculation of GHG Emissions from Electrical Power Stations and Boiler Houses (Astana, 2010) and regional net thermal efficiency of Urals Natural Gas Fired Power Plants (73.3%).

Total direct and indirect GHG emissions (Scope 1 and Scope 2) and total GHG emissions are summarised in Table 3.

Table 3: Scope 1, Scope 2 and total GHG emissions (tCO2e)

2013 2014 2015 2016 2017

Direct energy (Scope 1)

217,479.4

264,121.2

222,546.2

207,349.6

254,332

Indirect energy (Scope 2)

4,058.4

5,278.6

5,482.3

2,262.9

640.3

Total

221,538

269,400

228,029

209,613

254,972.3


The composition of GHG emissions predominately consisted of carbon dioxide and methane and stationary combustion sources formed the major portion of emitted GHGs. There was a decrease of more than 50% in GHG emissions from mobile combustion, and this resulted from the majority of vehicles being transferred to a transport services company in 2016.

Emissions intensity ratio

Tonnes of CO2 per tonne of output is a recommended intensity ratio for the oil and gas sector, as per Appendix F of the Defra Environmental Reporting Guidelines (2013). Taking into account the variety of products of Nostrum Oil & Gas – crude oil, stabilised condensate, LPG and dry gas – the chosen intensity ratio is a expressed in metric tonnes of CO2e (mtCO2e) per tonne of oil equivalent (mmboe).

Table 4 shows intensity ratios for total (Scope1 and Scope 2) emissions in the period 2013 2017.

Table 4: Emissions intensity ratios for total GHG emissions

2013 2014 2015 2016 2017
Production, toe

2,460,830

2,369,823

2,152,423

2,159,621

2,088,917

tCO2e/toe

0.090

0.114

0.106

0.097

0.122

Production,
mmboe

16.86

16.23

14.74

14.79

14.3

tCO2e/mmboe

13,139.85

16,598.88

15,467.30

14,170.7

17,820.7


As per National Plans for GHG Quotas Distribution for 2016 – 2020 (pursuant to RoK Government Resolution No. 1138 dated 30 December 2015) the established base year level is equal to 212,580 tonnes CO2 (2013 2014 average of reported emissions). The total quota for 2016 2020 is 1,062,900 tonnes CO2. It should be noted that due to changes in the Environmental Code of the RoK related to suspension of positions related to quotas utilisation the excessive quotas for GHG emissions cannot be utilised until 1 January 2018. Reportedly, the Ministry of Energy of the RoK is, in cooperation with the World Bank, developing an electronic GHG reporting platform. The electronic reporting will be used in the deployment of a national GHG quota trading system in the future.

Developing a GHG reduction capacity

According to its GHG emissions reduction strategy, Nostrum evaluates the potential for GHG emissions yearly to plan for the subsequent introduction of energy and resource saving measures. To meet these ambitious targets, we have developed the commitments of our managers and contractors to provide e ective assistance in improving energy e ciency and reducing GHG emissions.