Atmospheric Air Protection

KMG considers air protection a priority for its environmental activities, given the direct impact of pollution levels on public health and the environment. As part of its environmental policy, the Company implements systematic measures to reduce pollutant emissions, introduces modern technological solutions and automated environmental monitoring systems, and consistently reduces gas flaring.

Emissions Management and Equipment Upgrades

Reducing atmospheric emissions is one of KMG’s environmental priorities. The company is implementing a range of measures aimed at modernizing equipment, implementing environmentally efficient technologies, and improving the energy efficiency of production processes.

This work includes a phased conversion of process equipment from fuel oil to natural gas, the use of new-generation additives, the modernization of burner systems, the optimization of operating modes, and the reduction of equipment runtimes. Additionally, measures are being implemented to clean exhaust gases, expand gas processing capacity, and construct corresponding facilities, thereby reducing air pollution. Regular production monitoring ensures the timely detection and elimination of potential leaks.

To reduce emissions of volatile organic compounds, KMG equips its oil and petroleum product storage tanks with floating roofs and pontoons, which minimize the formation of volatile fractions by eliminating free gas space.

Modernization of production facilities

At the Atyrau Oil Refinery, the following measures have been implemented: the phased installation of internal floating covers on 60 pontoons at the tank farm, which effectively reduces hydrocarbon evaporative losses and VOC levels by 80-90%; the modernization of burner equipment (36 burners were replaced) at the EDP- AT-2 (Electric desalination plant, atmospheric-vacuum tube) units (2024); the introduction of additional heat exchange circuits at the EDP-AVT-3 units, which reduces fuel consumption by up to 30%; the dismantling of the REX oil trap and the closure of the open basins of the mechanical treatment facilities as part of the “Tazalyk” project, which reduced fugitive emissions and eliminated odor sources.

The comprehensive and systematic nature of the implemented measures, including modernization of the tank farm, updating process equipment, and eliminating accumulated environmental damage, has ensured a steady decline in emissions. As a result, from 2021 to 2025, Atyrau Oil Refinery LLP recorded a consistent reduction in pollutant emissions, confirming the effectiveness of the chosen environmental strategy and the Company’s compliance with sustainable development principles.

In 2025, Pavlodar Oil Chemistry Refinery LLP replaced 12 heat exchanger tube bundles, reducing the risk of emissions from process fluid leaks. Eighteen new furnace burners were installed, reducing nitrogen oxide and carbon monoxide emissions. Hydromechanical and hydrodynamic cleaning of coils and transfer lines was performed to eliminate the risk of accidental emissions due to overheating and deposit accumulation. Boiler lining repairs were performed, including on the flue gas recovery steam boiler. As a result, equipment integrity was improved, heat loss was reduced, and unauthorized emissions into the atmosphere were prevented.

Emission monitoring and automated control systems

KMG conducts comprehensive environmental monitoring, encompassing air quality, water resources, and soil cover. Industrial environmental monitoring is conducted on a regular basis, and measurement results are submitted quarterly to government regulatory authorities.

Particular attention is paid to monitoring air quality in areas where industrial facilities are located, including the use of permanent monitoring posts at the boundaries of sanitary protection zones. This allows for prompt response to changes in pollution levels and the implementation of corrective measures.

In accordance with the requirements of the Environmental Code of the Republic of Kazakhstan, effective January 1, 2023, automated emission monitoring systems (AFMs) will be implemented at Category I facilities, providing continuous, real-time emission monitoring and data transmission to government agencies. The AFMs are operational at Kazakhoil Aktobe LLP, Mangistaumunaigas JSC, Atyrau Oil Refinery LLP, Pavlodar Oil Chemistry Refinery LLP, and PetroKazakhstan Oil Products LLP; commissioning is nearing completion at Kazakhstan Petrochemical Industries LLP. The systems record concentrations of sulfur dioxide, nitrogen oxides, soot, and carbon monoxide, with data updated every 20 minutes.

The implementation of automated monitoring systems allows not only for monitoring emission levels but also for prompt adjustment of equipment parameters to further reduce negative environmental impacts.

Emissions of pollutants into the atmosphere

GRI 305-7

In 2025, KMG continued to implement environmental protection measures aimed at reducing pollutant emissions into the atmosphere. Total emissions amounted to 112.5 thousand tonnes, 3.7% lower than the 2024 level.

• nitrogen oxide (NOx) emissions amounted to 14.844 thousand tonnes, a decrease compared to the previous year;
• sulfur dioxide (SOx) emissions increased to 20.113 thousand tonnes, which is associated with changes in the operating modes of individual production units;
• carbon monoxide (CO) emissions decreased by 20% and amounted to 17.243 thousand tonnes due to the optimization of technological processes;
• the volume of other pollutants amounted to 60.320 thousand tonnes, demonstrating a steady decrease due to the implementation of environmental protection measures.

In 2025, the average specific nitrogen oxide (NOx) emissions for the KMG Group amounted to 0.36 tonnes per 1 thousand tonnes of hydrocarbon crude oil equivalent produced, compared to the IOGP average of 0.34. Therefore, the 2025 data show a decrease in emissions intensity compared to 2024, indicating an improvement in NOx emissions.

The average specific sulfur dioxide (SOx) emissions for the KMG Group of Companies in 2025 decreased compared to the previous year and amounted to 0.18 tonnes per 1 thousand tonnes of hydrocarbon raw materials produced in oil equivalent, with an average value for IOGP of 0.59.

KMG participates in international initiatives aimed at reducing gas flaring. Since 2015, the Company has been a participant in the World Bank’s “Zero Routine Flaring by 2030”, which aims to phase out the regular flaring of associated petroleum gas and improve the efficiency of hydrocarbon resource use. As part of this initiative, KMG annually reports on its crude gas flaring volumes to the World Bank office in the Republic of Kazakhstan.

The Company is simultaneously implementing projects to process and integrate petroleum gas into production processes, including its use for heat and power generation. These projects reduce pollutant and greenhouse gas emissions and improve the energy efficiency of production facilities.