Case Study

Oil and gas company invests into new technologies, Kazakhstan

The company is a producer of equipment and spare parts for the gas transportation system of Kazakhstan 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 improvement of own products to meet the highest demand of its client.

The company decided to decrease 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 of energy savings, financial-technical parameters and risks.
 
The project consisted of modernization 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 also resulted in installing an automatic control system enabling increased efficiency through flexible employment of compressors. Last, but not least, the new equipment led to reduction of the CO2 emissions by 75,000 tonnes per year, making its valuable input to mitigation of the negative effect of human activity on climate.
 
The project demonstrates that sustainable energy investments lead to high costs savings and fast repayment in large industries. Therefore, it is worth checking energy efficient possibilities, as these investments may be among the most profitable.
 
The EBRD supports implementation of such sustainable energy projects by the private sector through KazSEFF. Together, the private, residential and public sectors can make a change in the energy consumption patterns and contribute to the environmental protection.

 

15 Jun 2011