Kazakhstan Leverages Associated Gas to Boost Crypto Mining, Providing 1.3 TWh of Power

The Kazakh government is promoting the use of associated gas to power cryptocurrency mining in order to revive the mining industry affected by power restrictions. President Kassym-Jomart Tokayev signed a decree in July mandating the establishment of mechanisms for businesses to utilize associated gas for digital mining. Daniyar Mubarakov, head of the Blockchain and Digital Mining Association, stated that the total amount of associated gas in Kazakhstan could be converted into 1.2 to 1.3 TWh of electricity, sufficient to support medium or large data centers or Bitcoin mining farms in some oil fields. The Kazakh Energy Ministry estimates that the country has up to 60 oil fields producing associated gas. Oil companies can sell waste gas to miners, reducing disposal costs by millions of dollars, while miners can lock in electricity prices for years, decreasing their reliance on the power grid. The government is developing a legal framework to clarify operational rules for businesses and regulate the market. Gizzat Baitursynov, Deputy Minister of AI and Digital Development of Kazakhstan, stated that this mechanism will increase government tax revenues and improve the environment.

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