We use cookies
to help provide you with a good experience on our website. By continuing to browse the website, you are agreeing to our use of cookies.

Gazprom Neft opens a crypto mining farm run on gas energy

CIS GAS MONETISATION

Gazprom Neft opens a crypto mining farm run on gas energy

Gazprom Neft is getting into a different kind of exploration. According to CoinDesk, the company opened a venue for cryptocurrency mining on one of its oil drilling sites in Siberia, unlocking the power of Russia’s oil and gas resources for the needs of bitcoin mining. Source: Neftegaz

Gazprom Neft is a direct subsidiary of Gazprom and one of the very few government-owned companies in Russia that has openly expressed interest in the crypto mining industry. Earlier this year, CoinDesk reported that Russian Rosatom is opening up its energy supplies for miners, too.

The venue, located in the Khanty-Mansiysk region of northwestern Siberia, is using the associated gas from its oil field as an energy source and has its own power plant transforming the gas into electricity.

The CO2 that gets freed during the oil drilling is normally a liability for oil companies as they have to burn it into the atmosphere, which results in fines. However, there are ways to utilize it instead of wasting it, and electricity generation is one of them.

In cryptocurrency mining, one of the greatest costs is for the electricity needed to power the mining rigs. By locating mining operations at oil drilling sites where there’s abundant gas to provide virtually free electricity, both miners and the oil companies benefit. By doing this, Gazprom Neft is following the lead of the North American companies Upstream Data and Crusoe Energy Systems that are making use of gas at drilling sites in the U.S. and Canada.

Relevant news

CIS GAS MONETISATION
Ambitious gas monetisation projects by Schekinoazot