The Kazakhstan Association of Oil-Gas and Energy Sector Organizations (Kazenergy) has proposed that large companies, including those from the oil and gas industry, supply their electricity surplus to the national grid system at cost price.
«Tengizchevroil (TCO) and NCOC have provided the national grid operator KEGOG with their reserve power capacity on several occasions over the past few years. As you probably know, under the product sharing agreements big subsoil users can sell electricity neither to customers nor third-party organizations. Kazenergy is suggesting large companies consider if it is possible to supply their reserve power capacity to the national grid system under the condition of reimbursing their energy production costs,» the association stated after a meeting of TCO and NCOC representatives with the Ministry of Energy and KEGOC.
According to Kazenergy, this scheme would help settle a set of issues related to wholesale and balancing electricity markets.
There is unused power capacity in the western part of Kazakhstan as many subsoil users produce electricity on their own. If Kazenergy’s proposal is accepted, it will let oil companies sell their surplus of power and proceed with the development of renewable sources of energy. So far, the western power zone is isolated from the rest of Kazakhstan’s power system. At the same time, regular power failures hit both industrial and social objects in the region, the association highlighted.
«Our proposal would let oil companies redirect part of flaring gas to the production of electricity for their own needs as well. As a result, they would be able to reduce their emissions and supply more gas onto the domestic market, including future petrochemical projects,» Kazenergy said.
Within the framework of the meeting, Director General of Kazenergy Alibek Kuantyrov met with Dylan Morgan, deputy managing director of Chevron. The two sides discussed a wide range of issues related to bilateral cooperation and plans for the future.
