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Crypto Regulation

Kazakhstan Plans to Let Crypto Miners Power Rigs With Oilfield Associated Gas

Kazakhstan is drafting rules to let crypto miners generate their own electricity from associated gas produced during oil extraction, the country’s Energy Ministry said, noting 40 to 60 oilfields currently flare the gas. About 300-340 million cubic meters of associated petroleum gas was flared in 2024, which could yield roughly 1.2 to 1.3 terawatt-hours of power. The AI and Digital Development Ministry said a legal framework is being prepared to govern the model.

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AI take

Kazakhstan is effectively trying to convert a waste-disposal problem into a power source, which reframes flaring as an economic asset rather than an environmental cost. The affected parties are oil operators sitting on stranded gas and miners seeking cheap, off-grid power, with the state positioned to capture both flare-reduction optics and mining activity. The open question is whether the legal framework actually resolves ownership of the gas and grid-connection rights, since those details determine if this stays a draft or becomes deployable capacity.

Generated by AI for reference only.

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