Kazakhstan is advancing a plan to use associated petroleum gas to supply electricity for cryptocurrency mining, in an effort to revive a sector that was hit by power restrictions. President Kassym-Jomart Tokayev signed a decree in July ordering the development of a mechanism that would allow companies to use associated gas for digital mining. According to Daniyar Mubarakov, head of the Blockchain and Digital Mining Association, the country’s associated gas volumes could be converted into 1.2 to 1.3 terawatt-hours of electricity, enough to support the construction of medium-sized or large data centers or Bitcoin mining farms at some oil fields. The Energy Ministry estimates that as many as 60 oil fields in Kazakhstan generate associated gas. Under the proposal, oil companies could sell waste gas to miners and cut disposal costs worth millions of dollars, while miners could secure electricity prices for years and reduce reliance on the national grid. The government is also drafting a legal framework to define operating rules and regulate the market. Deputy Minister of AI and Digital Development Gizzat Baitursynov said the mechanism would increase government tax revenue and improve the environment.
Kazakhstan is pushing a plan to use associated gas to power cryptocurrency mining as it tries to revive a mining sector that was hurt by electricity restrictions.
President Kassym-Jomart Tokayev signed a decree in July ordering the development of a mechanism for companies to use associated gas in digital mining operations.
Associated gas could supply 1.2 to 1.3 TWh of electricity
Daniyar Mubarakov, head of the Blockchain and Digital Mining Association, said Kazakhstan’s associated gas volumes could be converted into 1.2 to 1.3 terawatt-hours of electricity. He said that would be enough to support medium-sized or large data centers or Bitcoin mining farms at some oil fields.
Kazakhstan’s Energy Ministry estimates that as many as 60 oil fields in the country produce associated gas.
Legal framework is being drafted
Under the proposal, oil companies could sell waste gas to miners and reduce disposal costs by millions of dollars. Miners, in turn, could lock in electricity prices for years and cut their dependence on grid power.
The Kazakh government is drafting a legal framework to clarify operating rules for companies and regulate the market.
Gizzat Baitursynov, Kazakhstan’s deputy minister of AI and digital development, said the mechanism would increase government tax revenue and improve the environment.
The report was cited by Bitcoin.com News.
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