Kazakhstan Plans to Establish an Associated-Gas Digital Mining Mechanism

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【Kazakhstan Plans to Use Associated Gas to Revive Crypto Mining, Potentially Providing Up to 1.3 TWh of Electricity】

The Kazakh government is promoting the use of associated gas to power cryptocurrency mining in an effort to revive the mining industry, which has been affected by power constraints. President Kassym-Jomart Tokayev signed a decree on, requiring the development of mechanisms for companies to conduct digital mining using associated gas. Daniyar Mubarakov, head of the Blockchain and Digital Mining Association, said that Kazakhstan's total associated gas could be converted into July to 1.2 TWh of electricity, enough to support the construction of medium-sized or large data centers or Bitcoin mining farms at some oil fields. Kazakhstan's Ministry of Energy estimates that up to 1.3 oil fields in the country produce associated gas. Oil companies could sell waste gas to miners, reducing disposal costs by millions of 60, while miners could lock in electricity prices for several years and reduce their reliance on grid power. The Kazakh government is developing the relevant legal framework to clarify operating rules for companies and regulate the market. Kazakhstan's USD and Deputy Minister of Digital Development Gizzat Baitursynov said that the mechanism would increase government tax revenue and improve the environment.

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Key points

The Kazakh government is promoting the use of associated gas to power cryptocurrency mining.
Kassym-Jomart Tokayev signed a decree on July, requiring the development of a mechanism for companies to conduct digital mining using associated gas.
Daniyar Mubarakov said that the total associated gas could be converted into 1.2 to 1.3 TWh of electricity.
Kazakhstan's Ministry of Energy estimates that up to 60 oil fields in the country produce associated gas.
The government is developing the relevant legal framework to clarify operating rules for companies and regulate the market.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Associated gas is gas produced during oil production. The report says that Kazakhstan plans to convert this type of gas into electricity for use by data centers or Bitcoin mining farms built at some oil fields.

Why it matters to readers

If the relevant mechanism and legal framework are implemented, miners could gain a potential power source independent of the grid, while oil companies could reduce associated-gas disposal costs.

This indicates that crypto mining is affected not only by cryptocurrency prices, but also by power sources, energy policy, and regulatory rules.

Risks and unknowns

The text of the decree and the supporting legal framework were not provided in the material.
1.2 to 1.3 TWh is an estimate by relevant individuals; the actual available electricity has not been confirmed.
The first batch of projects, commissioning timeline, and actual construction scale are not specified.
No independent verification materials are attached for the reported sources and related government and industry statements.

Kazakhstan Plans to Establish an Associated-Gas Digital Mining Mechanism

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