Kazakhstan Plans to Allow Crypto Miners to Generate Power from Associated Gas at Oil Fields

PANews, September 26 – According to Euronews, Kazakhstan is advancing a new plan to allow cryptocurrency miners to generate their own electricity using associated gas produced during oil field extraction for crypto mining, in order to reduce the environmental impact of gas flaring, lower miners' electricity costs, and ease pressure on the national grid.

Kazakhstan's Ministry of Energy said that associated gas flaring currently occurs at roughly 40 to 60 oil fields. Data shows that in 2024, about 300 million to 340 million cubic meters of associated petroleum gas were flared in Kazakhstan; if converted into electricity, it is estimated to produce about 1.2 to 1.3 terawatt-hours of power. A deputy minister of Kazakhstan's Ministry of Artificial Intelligence and Digital Development said relevant authorities are drafting a legal framework to clarify the regulatory rules for this model. Kazakhstan previously experienced power supply strain due to the rapid growth of crypto mining and imposed restrictions on miners' electricity use.