The match between Liverpool and City could go a long way to deciding the 2013-14 Premier League title, with Kompany's men currently trailing the leaders by four points with two games in hand.
In the lead-up to Sunday's game, Liverpool manager Brendan Rodgers has regularly emphasised the importance of the atmosphere at Anfield, but Kompany is adamant City will be unfazed following impressive wins at Bayern Munich, Tottenham and Manchester United this term.
"We've been to Old Trafford, White Hart Lane and the Allianz Arena and come away with victories this season and our form on the road is as good as anyone," the Belgian defender said.
"We know that if the players, supporters and staff around our club stand together, we are capable of anything.
"We are playing a very good team and we know how hard this is going to be, but we will go to Anfield in confident mood."
Kompany rates Liverpool as his team's most dangerous rival for the Premier League title.
"We remember the match against them earlier in the season (which City won 2-1) and, for me, Liverpool are still the best Premier League team we've faced at the Etihad," the 28-year-old said.
"They have been on a fantastic run and we know we have to be focused and leave the pitch at the end knowing we've given everything because there is so much at stake in this game."
While acknowledging the threat posed by Liverpool forwards Luis Suarez and Daniel Sturridge, who boast 49 Premier League goals between them this season, Kompany is confident City's defence can hold firm.
"They have scored a lot of goals - as have we - but we've only conceded two goals in our last seven Premier League games so we've been defending well, too, and that will be just as important as our strikers finding the net on Sunday," he added.
"It's a game between two teams with slightly different styles but the same philosophy and I think it will be a very entertaining game because both teams try to score goals."
