Tecpetrol, a leading Argentinian oil and gas producer, has revealed plans to begin crypto mining operations powered by stranded natural gas from its remote oil fields.
The Buenos Aires-based firm explores and extracts oil and gas across Argentina, Venezuela, Bolivia, Ecuador, Mexico, Peru, and Colombia. Per local news outlet Rio Negro, Tecpetrol will harness excess associated gas from its Vaca Muerta oil fields to generate electricity for crypto mining.
Associated gas is a byproduct released when pumping oil. Typically this gas is flared or vented on-site unless infrastructure exists to capture it. But Tecpetrol’s remote oil fields lack these facilities.
Instead, the firm will deploy generators at the sites to convert the gas into electricity to power mining rigs. Tecpetrol has partnered with a company that runs similar operations for US oil firms.
The mining is set to begin in late October or early November. CEO Ricardo Markous said the gas from six wells producing 60,000 cubic meters daily will power the mining.
Markous noted using the gas will also help accelerate oil production. Tecpetrol will operate three generating facilities fitted with mining rigs.
While Tecpetrol hasn’t revealed which cryptocurrencies it will mine, the CEO said the initiative will have environmental benefits by preventing gas flaring and providing a use for the stranded fuel.
Oil companies in Russia have piloted similar crypto-mining projects using otherwise wasted natural gas. As crypto continues growing globally, operations like Tecpetrol’s could become an appealing option for monetizing and reducing the waste of stranded gas reserves.
