Kazakhstan to allow crypto miners to use surplus oil field gas

Kazakhstan is implementing a new energy model to allow cryptocurrency miners to utilize surplus associated gas from oil and gas fields. Under a decree signed by President Kassym-Jomart Tokayev, mining companies can install independent power generation facilities near oil fields to convert gas—which is often flared or burned off due to lack of transport infrastructure—into electricity.

This initiative aims to resolve previous energy crises caused by the rapid influx of miners in 2021, which strained the national grid and led to regional blackouts. By using off-grid, self-generated power, miners can avoid reliance on the state electricity network, while oil operators can generate additional revenue from gas that was previously wasted.

Beyond stabilizing the power grid, the move is expected to have environmental benefits by reducing greenhouse gas emissions from gas flaring. The government is currently working with the Ministry of Artificial Intelligence and Digital Development to establish the legal framework, including licensing, power production standards, and gas supply contracts. There is also ongoing discussion regarding whether this infrastructure could eventually support the growing demand for AI computing power.