Kazakhstan Creates Framework for Oil-Field Gas to Power Crypto Mining

Kazakhstan has created a framework for using associated petroleum gas and natural gas from oil and gas fields to generate electricity for digital-mining operations, with the policy intended to limit added pressure on the national energy system.

Decree No. 1347, dated July 7, directs officials to develop autonomous power-generation systems. Electricity from those systems may be allocated to digital miners when the underlying resources are not required for state needs.

The decree requires implementation through an action plan that assigns deadlines and responsibilities to government bodies. An action plan published Sept. 15 calls for the Ministry of Energy and the Ministry of Artificial Intelligence and Digital Development to develop mechanisms using gas and coal generation to supply mining centers.

The framework is intended to shift mining toward autonomous generation at production sites instead of increasing reliance on the national grid.

Kazakhstan became a major Bitcoin (BTC) mining location after China’s 2021 crackdown on the industry. Higher electricity demand later placed pressure on the country’s energy system, followed by a mining tax of 1 Kazakhstani tenge per kilowatt-hour and tighter registration and oversight.

Kazakhstan ranked among the 10 largest Bitcoin-producing countries based on 2025 results. In 2021, the country accounted for 18.1% of global Bitcoin mining, compared with 35.4% for the United States and 11.2% for Russia.

The initiative forms part of a broader digital-assets program covering regulated crypto trading, stablecoin-based cross-border payments, tokenized instruments and a national strategic crypto reserve. The decree also envisions planned individual income-tax exemptions for digital-asset transactions conducted through regulated infrastructure.

The next step is the development of the implementation mechanisms and deadlines assigned under the action plan.