Kazakhstan is pursuing a new energy strategy that pairs unused gas from oil production with cryptocurrency mining, hoping to revive an industry that previously strained the national grid.

Authorities want miners to generate their own electricity on site from associated petroleum gas that is now routinely burned off at wellheads.

The approach is designed to cut wasteful flaring, ease pressure on the power system, and give oil producers a commercial use for a byproduct that has long been treated as a liability.

Associated gas comes up with crude oil.

In remote fields it is often uneconomic to capture and pipe to market, so operators flare it.

That practice wastes energy, produces emissions, and can constrain oil output because of…