Kazakhstan Allows Crypto Miners to Use Associated Gas for Power Generation

Kazakhstan is promoting a new plan that allows cryptocurrency mining companies to generate electricity using associated gas from oil fields for mining purposes. This initiative aims to reduce the environmental impact caused by the burning of natural gas, lower electricity costs for mining companies, and alleviate pressure on the national power grid. The Ministry of Energy stated that there are currently about 40 to 60 oil fields where associated gas is being flared. Data shows that in 2024, Kazakhstan is expected to burn approximately 300 to 340 million cubic meters of associated petroleum gas, which, if converted into electricity, could generate about 1.2 to 1.3 terawatt-hours of power. Relevant authorities are working on a legal framework to clarify the regulatory rules for this model. Previously, due to the rapid development of crypto mining, Kazakhstan had imposed restrictions on electricity usage for mining companies due to tight power supply.