Kazakhstan plans to use associated gas for crypto-mining power

  • Kazakhstan is developing rules to convert oil-field flare gas into electricity for crypto miners.
  • Daniyar Mubarakov estimates Kazakhstan could generate 1.2 to 1.3 TWh from flared gas.
  • Kazakhstan’s Energy Ministry estimates that up to 60 oil fields produce flare gas.

Kazakhstan is developing a legal framework to capture flare gas from oil production and convert it into electricity for cryptocurrency-mining operations, after President Kassym-Jomart Tokayev’s July decree called for a mechanism allowing companies to use gas opportunities in digital mining. Daniyar Mubarakov, Head of the Blockchain and Digital Mining Association, said miners were ready to buy and install conversion equipment, estimating that Kazakhstan’s total flared-gas production could generate 1.2 to 1.3 terawatt-hours. The initiative follows the 2021 mining boom, which strained Kazakhstan’s aging energy infrastructure and prompted tighter controls and electricity auctions that drove much of the industry abroad. The Energy Ministry estimates that up to 60 oil fields produce flare gas. Oil companies could earn from selling gas that otherwise incurs disposal costs, while miners could secure dedicated power and lock in electricity prices for years rather than rely on fluctuating grid tariffs. The specific fields, technology, pricing, approvals and launch timeline remain unresolved.

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