Industry news

On May 17, 2024, at the site of JSC «KEGOC» «KAZENERGY» Association gathered heads and representatives of the Ministry of Energy of the Republic of Kazakhstan and leading companies of subsoil users (Tengizchevroil, NCOC) to discuss topical issues of the development of the electric power industry, including the use of unused energy capacities of subsurface users to ensure reliable power supply to the Western Power Hub and the implementation of renewable energy projects in oil and gas fields.

Chairman of the Board of JSC «KOREM» Aidos Daribayev also took part in the discussion of issues important for the development of the electric power industry.

As it is known, the work of the Western Zone, where the main oil and gas producers are concentrated, is isolated from the Unified Energy System of the country. In this regard, unstable energy supply, systematic emergency shutdowns create big problems for the entire region, including for industrial and social facilities.

At the same time, the reserve energy capacities of TCO and NCOC enterprises have repeatedly helped the System Operator of the Unified Energy System of the Republic of Kazakhstan (KEGOC) to rectify the situation with the provision of additional volumes of electricity in recent years. The fact is that large subsurface users, according to the Production Sharing Agreement and the Partnership Agreement, do not have the right to sell electricity to third-party organizations and consumers.

KAZENERGY suggests that large companies consider the possibility of issuing certain volumes of generation within the framework of reserve capacities, subject to reimbursement of electricity production costs. This proposal will also resolve a number of issues related to the relations of entities in the wholesale and balancing electric energy market.

In addition, the participants discussed the implementation of renewable energy projects in oil and gas fields.

This will make it possible to release part of the commercial gas burned by subsurface users for electricity production, use part of the generation for their own needs, reduce harmful emissions into the environment and supply additional commercial gas to the domestic market, including for future petrochemical projects.

The participants expressed their readiness to cooperate and develop a consolidated position that will satisfy the interests of all parties and ensure reliable power supply to the regions producing oil and gas.