Kazakhstan plans to allow cryptocurrency mining companies to use associated gas from oil fields to generate electricity for mining operations.
PANews reported on September 26, citing Euronews, that Kazakhstan is advancing a plan to let cryptocurrency mining companies generate their own electricity from associated gas produced during oil field operations and use it for mining. The proposal aims to cut the environmental impact of gas burning, lower miners' power costs and ease pressure on the national grid.
What the proposal would allow
Associated gas is a by-product of oil extraction. Instead of being burned off, it could be used on site to produce power for mining facilities. That would shift some miners away from ordinary grid supply and turn waste gas into an energy source for a power-intensive industry.
Why the numbers matter
Kazakhstan's Ministry of Energy says about 40 to 60 oil fields currently flare associated gas. Data cited in the report shows 300 million to 340 million cubic meters of associated petroleum gas were burned in 2024. If converted into electricity, that gas could generate about 1.2 to 1.3 terawatt hours of power.
What comes next
A deputy minister from Kazakhstan's Ministry of Artificial Intelligence and Digital Development said authorities are drafting a legal framework to set rules for the model. The move follows earlier concerns that rapid growth in crypto mining strained power supplies, leading to restrictions on miners' electricity use. The final framework will determine whether gas-powered mining becomes a practical option.
Risk Disclaimer
This article is only an informational summary of public news and does not constitute investment advice, legal advice, or a recommendation to buy, sell, or hold any asset. Cryptocurrency prices can be extremely volatile, and mining, energy, and regulatory developments may change quickly without notice. Readers should independently verify information, assess their own risk tolerance, and consider seeking professional advice before making any investment decisions. Always judge such news rationally and avoid impulsive financial actions.
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