International investment pursued by Kazakhstan to reduce methane leakage

International investment pursued by Kazakhstan to reduce methane leakage

Unveiling Kazakhstan's Game Plan to Slash Methane Emissions

It's time to wave the green flag as Kazakhstan prepares to unveil its plan to slash methane emissions at the upcoming UN climate conference in Baku, scheduled for November. This move comes hot on the heels of Astana joining the Global Methane Pledge, a groundbreaking commitment to reduce global methane pollution by at least 30 percent below 2020 levels by 2030.

Kazakhstan is hunting a 4.9 percent reduction from its 2020 methane levels, or approximately 2 million metric tons. This ambitious project is projected to set investors back at least $1.4 billion through 2030, according to US and international estimations for the Kazakh oil and gas sector.

"We've got a game plan to snag those methane reduction targets," said Saule Sabieva, a key figure at the Kazakh Ministry of Ecology and Natural Resources, who was part of an early June meeting that set the stage for the UN climate conference, also known as COP29. Expect tailor-made measures for each industry, she assured us.

Research indicates that over 59 percent of methane emissions between 1990 and 2021 can be attributed to the energy sector, with agriculture claiming a measly 30 percent. Waste management ranked third with 6.5 percent of emissions[5].

June to December 2023 saw Kazakhstan grapple with the second-largest anthropogenic methane leak ever recorded, emanating from a natural gas fire during a well-drilling operation in the Mangystau region. Methane concentrations skyrocketed to a staggering 480 times the legal limit[6]. Buzachi Neft, the culprit behind this super-emission, was slapped with a hefty $780,000 in fines.

Despite this leak occurring more than three weeks before Kazakhstan's commitment to the Global Methane Pledge, Buzachi Neft announced its intention to drill 23 new wells in the Mangystau region. The proposed drilling depth is set at 4,265 feet, with a buffer of 820 feet. Construction could commence as early as September, given the company's deafening silence on the measures taken to prevent future methane leaks[7].

In contrast, state-owned oil giant KazMunayGas seems to be playing by the rules. The company has collaborated with Oslo-based Carbon Limits, an environmental consultancy focused on reducing emissions. Together, they've deployed the Leak Detection and Repair (LDAR) program in a demonstration at one of KazMunayGas' production sites. This technology uses satellite imagery to detect methane super-emitters, and infrared cameras to pinpoint the source of leaks. The fixes can be made promptly[8].

Furthermore, KazMunayGas has committed to training 24 employees from the company and its subsidiaries to independently implement the LDAR system at their respective sites. The cost of implementing this technology is estimated to be around $1 million[9].

Beyond the LDAR implementation, numerous measures are in the pipeline as part of Kazakhstan's commitment to the Global Methane Pledge, such as devoting $80 million to upgrade coalbed infrastructure and power generation through methane processing. Another $200 million could be directed towards early coal seam degassing at the Tentekskaya mine in northeastern Kazakhstan, utilizing the plasma pulse impact method[10]. Dealing with methane leaks at Kazakhstan's oil and gas facilities is expected to necessitate around $70 million per year[11].

In April, the Ministry of Energy sought the support of the European Bank for Reconstruction and Development to jointly court investments for new projects[12]. In May, discussions focused on developing national standards for methane reduction took center stage at the Enhanced Strategic Partnership Dialogue, a platform that welcomed a delegation from Kazakhstan in Washington[13].

Stay tuned for further developments in Kazakhstan's efforts to slash methane emissions and consolidate its green credentials. The future looks promising for this formerly fossil fuel-reliant nation!

Insights:- Kazakhstan's commitment to the Global Methane Pledge primarily targets the fossil fuel sector, with the objective of reducing methane emissions by at least 30% by 2030. The country plans to invest around $1.4 billion through 2030 to achieve these reductions, while allocating funds for upgrading coalbed infrastructure, methane processing, and early coal seam degassing.- Key players in Kazakhstan's energy sector, such as NC KazMunayGas JSC, are expected to be involved in implementing regulations and managing funding for methane reduction initiatives. The company has worked with environmental consultancy Carbon Limits to deploy the Leak Detection and Repair (LDAR) program, using technology to pinpoint and seal methane leaks.- Stricter methane emission standards will likely form part of Kazakhstan's regulatory efforts, although specific financing details remain unspecified in the available information.

1. Kazakhstan's plans to slash methane emissions involve a significant investment of approximately $1.4 billion in the oil and gas sector, as indicated by US and international estimations.
2. The energy sector has been identified as a major contributor to methane emissions, with over 59 percent of emissions between 1990 and 2021 attributed to this sector.
3. In an effort to reduce methane pollution, Kazakhstan has joined the Global Methane Pledge, a commitment to reduce global methane levels by at least 30 percent below 2020 levels by 2030.
4. Kazakhstan's environmental efforts extend beyond methane reduction, with some investments directed towards upgrading coalbed infrastructure and power generation through methane processing, as well as early coal seam degassing at the Tentekskaya mine.

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