Kazakhstan’s progress in reducing gas flaring is a model for the world
Kazakhstan has made tremendous progress in reducing gas flaring, setting an example for its Central Asian neighbors and oil and gas producing countries around the world. In 2015, it was one of the first countries to sign onto the World Bank’s Zero Routine Flaring initiative. The country has cut flaring from 3.96 billion cubic meters (bcm) in 2012 to just 1.01 bcm in 2023 – a remarkable 75% decrease.
This progress stands out globally: among all major oil and gas producers, Kazakhstan has achieved one of the largest reductions in flaring by volume and the largest drop in flaring intensity from 2012 to 2023 – from 7.4 to 1.5 bcm flaring per barrel of oil produced. At the same time, the country’s flaring intensity remains high and well above a flaring level that is in line with the International Energy Agency’s (IEA) Net Zero Emission (NZE) Scenario – 0.3 bcm flaring per barrel of oil produced, as CATF documented in Flaring Accountability. Kazakhstan’s flare reduction is a notable achievement, one which Kazakhstan can be proud of, and from which the rest of the world can take lessons, and it should build on this success to achieve even greater reductions of this wasteful and polluting practice.
Thoughtful regulatory development and enforcement lead the way
The country first banned flaring in the mid-2000s, when amendments to the Petroleum Law (1995) required oil operators to cease flaring and prohibited new developments without associated gas utilization plans. The Code on Subsoil and Subsoil Use (2017) reinforced this ban, prohibiting the flaring of associated gas except in specific emergency cases, a practice CATF strongly endorses. This law, which superseded the original 2010 version, requires companies to seek permission from authorities, conduct investigations, and submit quarterly reports on any technological failures leading to flaring. In addition, it requires operators to include approaches to utilize – rather than flare – all produced gas in all oil and gas project plans. And establishes an obligation for operators to compensate for damages resulting from violating the terms of the subsoil and subsoil use code–including by flaring.
Additionally, the Environmental Code, which was enacted in 2021, regulates and penalizes polluting substances and greenhouse gas (GHG) emissions from facilities, including within the oil and gas industry, that have significantly negative impacts on the environment. Oil and gas facilities are mandated to conduct environmental impact assessments that include information about the expected types, characteristics, and quantities of emissions into the environment for planned projects. These assessments are reported to an expert commission before commencing any business activities to establish emission limits and penalties for noncompliance in the environmental permits. The law requires oil and gas operators to implement the best available techniques and a program to improve environmental efficiency in order to minimize the negative impact on the environment.
Importantly, Kazakhstan regulators routinely assess fines to companies based on violations to flaring regulations, including fines for improper flaring practices, failure to report flaring, and waste/abuse of subsoil resources. These fines have been held up in court proceedings. Over the last few months, notable fines have been assessed:
- The North Caspian Operating Company – a joint venture between Chinese National Petroleum Company, ENI, KazMunayGas, Shell, Exxon Mobil, and TotalEnergies – was fined 3.4 billion Tenge (6.6 million U.S. dollars) by a court in January 2025.
- In March 2025, Buzachi Neft was fined 8.4 billion Tenge (or approximately 16 million U.S. dollars) by the regulator for unauthorized gas flaring in Mangistau.
- Buzachi Naft was also assessed a 2.8 billion Tenge (5.5 million U.S. dollar) fine for a major well blowout, one of the largest methane leaks ever observed globally, in September 2024, but the majority of the fee was assessed due to unauthorized flaring during the leak, while a nominal fee was assessed for the release of greenhouse gases (particularly methane).
In addition to these regulatory requirements, in 2015, KazMunayGas (KMG), Kazakhstan’s state-owned oil company, joined the World Bank’s Zero Routine Flaring by 2030 Initiative. As part of this initiative, it committed to cooperating to eliminate routine flaring no later than 2030 and to submit annual reports on total flaring volume. Between 2017 and 2023, KMG reduced its flaring volume by 89% (from 316 to 35 million cubic meters) and increased its gas utilization rate.1
As a result of these policies and voluntary commitments, Kazakhstan has seen a steady decline in flaring, even as oil production remained robust. These policies have significantly lowered Kazakhstan’s flaring intensity compared to other oil-producing nations. In 2023 alone, the country produced 683 million barrels (MMbbl) of oil, exporting 530 MMbbl—350 MMbbl of which went to the European Union (EU). Given that Kazakhstan is the third-largest oil supplier to the EU, it must ensure compliance with the bloc’s strong environmental import standards, making further flaring and methane reductions even more critical for maintaining market access.
Key industry players need to address remaining flaring
Despite national progress and the threat of penalties, some operators continue to flare significant volumes of gas. The largest contributor on an equity-attributed basis (per CATF’s Flaring Accountability report) is KazMunayGas (KMG), who CATF has found was responsible for approximately 14% of total flaring in Kazakhstan in 2023, but flaring volumes and flaring intensity varies by production basin.
International oil companies (IOCs) such as Chevron, ExxonMobil, Shell, Eni, and TotalEnergies have stakes in flaring operations throughout the country. While these IOCs account for only ~10% of Kazakhstan’s total flaring (on an equity-attributed basis), their presence in key oil fields means they could play an important role in further reductions, through operational and technical support and access to financial opportunities for gas capture and flare reduction projects. All of their operations in the country involve joint ventures with KMG, demonstrating strong partnerships and the need for close collaboration to address the remaining flaring.
In addition, as the chart below shows, private Kazakh firms and Chinese companies also account for a significant share of flaring. The chart below shows flaring responsibility by operator (not including CATF’s equity adjusted model) for 2022.
Existing rules are a great start, but could go further
While Kazakhstan has reduced flaring, its oil and gas sector still contributes 32% of the country’s greenhouse gas (GHG) emissions through flaring, venting, and leaks (according to a report by S&P Global), due to emissions of methane, a potent greenhouse gas that contributes significantly to climate change. In 2022 alone, 1.1 bcm of gas was lost to the atmosphere, amounting to 2% of total gas production and 6% of domestic consumption. Redirecting this wasted gas to Kazakhstan’s domestic market could:
Over the last few years Kazakhstan has announced several efforts to raise their climate leadership. Key examples include:
- Joining the Global Methane Pledge in 2023;
- Committing to delivering deep reductions of methane across all sectors – energy, waste, and agriculture – starting with the oil and gas industry; and
- Key industry players (KMG, the North Caspian Operating Company, and Karangchanganok Petroleum Operating Company) are taking strong steps toward reducing the methane intensity of their operations by joining the Oil and Gas Methane Partnership 2.0.
To build on its success with flare gas reduction, Kazakhstan can further strengthen its flaring rules (with targeted measures to minimize methane from flaring), adopt regulations to reduce methane emissions leaks through a strong leak detection and repair program, control emissions from equipment venting (such as tanks and compressors), and develop a monitoring, reporting, and verification (MRV) framework in line with the requirements of the EU Import Regulation.
Kazakh citizens largely support initiatives to clean up the oil and gas industry. In a recent public opinion survey commissioned by the Global Methane Hub, 77 percent of Kazakh’s surveyed supported a national program to monitor and measure methane emissions in the oil and gas industry. CATF, along with international partners such as the International Energy Agency, the World Bank, and the International Methane Emissions Observatory, is supporting government and industry through this process, including with the launch of the first workshop on the regulatory development process in January 2025.
Energy Policy: In Kazakhstan, emissions tracking for the oil and gas industry delivers +10pts strong support and +8pts total support compared to an identical policy in agriculture.
A model for the region, but work remains
Kazakhstan’s 75% reduction in gas flaring over the past decade is a major environmental achievement and sets an important example for other oil-producing nations. However, further action is necessary to fully eliminate routine flaring, reduce methane emissions, and maximize gas utilization.
With growing pressure from the EU’s import standards and economic benefits from capturing flared gas and reducing methane emissions, Kazakhstan has strong incentives to continue strengthening its policies and enforcing strict environmental regulations. The country has already shown strong leadership to implement regulations that drive emissions reductions.
By implementing higher flare efficiency requirements and taking strong action to limit venting and fugitive emissions from equipment, Kazakhstan can solidify its methane leadership as a low-emissions oil and gas producer.
1 Sustainability Development Report of NC Kazmunaygas JSC for 2024. https://www.kmg.kz/upload/iblock/897/88tuw3sydjq11f57im7bjrhpfjlntdlp/KMG_2024_OUR_2805_EN.pdf, pg 114. World Bank Zero Routine Flaring by 2030 (ZRF) Initiative, Reporting. https://www.worldbank.org/en/programs/zero-routine-flaring-by-2030/reporting.
