Kazakhstan is investigating the use of associated petroleum gas, which would normally be vented at oil fields, to power bitcoin mining. A framework for the use of oil and gas resources that are not required by state regulations for autonomous energy generation, including digital mining, was established by a presidential decree in July.
While miners and oil corporations are evaluating projects that might convert waste gas into power for mining operations, the government is currently working on comprehensive regulations.
JUST IN: 🇰🇿 Kazakhstan allows crypto miners to generate power using flared oil field gas.
• Cuts emissions and boosts oil production
• Unlocks 1.3 TWh of potential energy pic.twitter.com/0wTRwZAv6D
— Bitcoin Archive (@BitcoinArchive) September 25, 2026
Alongside crude oil, associated petroleum gas is generated. Currently, part of this gas is flared, or burnt, when it cannot be exploited or delivered profitably.
The Blockchain and Digital Mining Association of Kazakhstan said that between 300 million and 340 million cubic meters of related petroleum gas were flared in the nation in 2024.
According to the association’s estimations, that quantity of gas could produce between 1.2 and 1.3 terawatt-hours of electricity if it were converted.
According to the suggested plan, mining firms would set up machinery at or close to oil reserves in order to turn the gas into power. Using gas-piston generating units, a field that produces around 100,000 cubic meters of associated gas daily may possibly provide 13 to 15 megawatts of power.
A medium-sized mining operation might be sustained with that sum. Larger operations could use 50 MW or more, whereas typical mining farms can use 5 to 20 MW.
For miners, the approach could provide access to dedicated electricity without placing additional demand on Kazakhstan’s wider power grid. It could also give operators greater visibility over energy costs instead of leaving them entirely exposed to changing grid tariffs.
Oil companies could benefit as well. Rather than treating associated gas as a waste product that has to be flared, companies could sell it or use it to generate electricity for a paying customer. Kazakhstan’s Energy Ministry estimates that around 40 to 60 oil fields currently flare associated gas, creating a potential pool of sites for such projects.
However, the idea still needs a detailed legal framework. Kazakhstan’s government is working on rules covering how oil companies, mining businesses and other participants can operate under the new arrangement.
The country’s National Bank has said its 2026 digital-asset strategy places emphasis on autonomous electricity generation using energy resources, with the aim of developing mining without putting additional pressure on the national power system.
The proposal marks a different approach from Kazakhstan’s earlier crypto-mining boom. Rapid growth in mining after 2021 contributed to pressure on the country’s electricity infrastructure, prompting authorities to introduce tighter controls on mining-related power consumption.
The new model attempts to connect mining with an energy source already available at oil fields rather than relying entirely on the national grid. There are also infrastructure costs to consider. According to figures cited by the Blockchain and Digital Mining Association, building a new power station from scratch could cost around €1.7 million to €2.2 million per MW and take more than three years.
Under the proposed model, specialized companies could handle gas processing, generation equipment, maintenance and approvals, while miners would potentially finance and install the equipment.
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