Kazakhstan Seeks to Harness Unused Gas for Crypto Mining

Kazakhstan is reviving its cryptocurrency mining industry by tapping into unused gas from oil production. The country aims to cut down on wasteful flaring, ease pressure on the power system, and give oil producers a commercial use for associated petroleum gas.

According to officials, around 300-340 million cubic meters of associated petroleum gas were flared in 2024, which could have produced approximately 1.2-1.3 terawatt-hours of electricity. To tackle this issue, the government is drafting regulations that will allow mining firms to finance and install gas-to-power units at qualifying oil fields.

Oil companies would sell the previously worthless gas to miners, who would secure multi-year power costs insulated from grid tariff swings. This arrangement is described as mutually beneficial, with both parties standing to gain financially.

The new policy is part of a wider effort to rebuild Kazakhstan's position in digital assets after it initially attracted a significant share of global hash rate and then imposed restrictions due to electricity demand surges.