Oil and gas company invests in new technologies, Kazakhstan

The company has been a producer of equipment and spare parts for Kazakhstan’s gas transportation system since 2000. The company’s management is convinced that only advanced and competitive technologies allow businesses to survive. That is why the company has been constantly researching and investing in the improvement of its own products to meet the highest demands of its client.

The company decided to decrease the energy costs of the compressor unit and addressed KazSEFF for affordable financing of this project.

The KazSEFF team performed the project analysis, assessed the potential for energy savings, financial-technical parameters and risks.

The project consisted of modernisation of fifteen gas engine compressors to replace an electric compressor.

The $13.8 million investment allowed the company to reduce the energy consumption of the gas supply system by 109,500 MWh per year, resulting in the annual costs savings of $5.9 million. This means the investment will be repaid out of energy savings in just two and a half years, continuing to generate profit for many years to follow. The project involved the installation of an automatic control system enabling increased efficiency through flexible employment the of compressors. Last, but not least, the new equipment led to a reduction of CO2 emissions by 75,000 tonnes per year, making a valuable contribution to the mitigation of the negative effects of human activity on the climate.

The project demonstrates that sustainable energy investments lead to high costs savings and fast repayment in large industries. Therefore, it is worth checking the energy efficient possibilities, as these investments may be among the most profitable.

The EBRD supports the implementation of such sustainable energy projects by the private sector through KazSEFF. Together, the private, residential and public sectors can make a change in energy consumption patterns and contribute to environmental protection.