Methane Gas – 1.12 billion cubic meters confirmed in Dailekh 

Kathmandu: The Geological Survey Company of China has submitted a preliminary report on petroleum and natural gas exploration in Dailekh to the Government of Nepal. According to the report, the Jaljale area in Dailekh has been confirmed as a massive reservoir of methane gas.

First drilling at the place began on May 11, 2021 (Baisakh 28, 2078 B.S.) and now reached a depth of 4,013 meters. Testing of the samples collected from that depth confirmed the presence of 1.12 billion cubic meters of methane gas.

According to the Survey, this is just the preliminary result of the first of four potential sites. Initial projections suggest that the Jaljale area may contain a total of approximately 430 billion cubic meters of gas across all four sites. This amount could potentially fulfill Nepal’s gas demand for around 50 years.

According to Dinesh Kumar Napit, Deputy Director General of the Department of Mines and Geology and Head of the Petroleum Exploration Project, the exploration began following a government-to-government (G2G) agreement between Nepal and China in 2019.

“The Government of Nepal allocated 45 ropanis of government land in Dailekh’s Jaljale area for the exploration project. This is the deepest and most scientifically conducted exploration project in Nepal so far,” Napit said.

He added that the current report is only preliminary. Further detailed testing regarding the gas’s quality, commercial production feasibility, and potential economic benefits is ongoing at the other end.

The Chinese company plans to submit its final report by December 2025.Immediately after that Nepal Government is planning to start the commercial testing of the natural gas within December.

For locals in Dailekh, witnessing natural gas burning at random land or substances resembling oil seeping from the ground is nothing new. However, scientific confirmation of this potential has been in process since 1979 (2036 B.S.). After Nepal promulgated its constitution in 2015 (2072 B.S.), India imposed an economic blockade, leading to a severe fuel crisis. This incident forced the Nepali government to focus seriously on domestic energy resources, bringing Dailekh back into focus after long.

That crisis created an opportunity. For the first time, Nepal began to seriously identify and explore its domestic energy resources. The agreement signed between Nepal and China in January 2019 (Magh 2075 B.S.) regarding petroleum exploration was not only a technical advancement but also carried strategic importance to it.

Preliminary explorations by Nepali and Chinese technical teams have confirmed that the continuously flowing gas in the Shirshthan and Navisthan areas of Dailekh is indeed petroleum-based. Experts estimate that there may be petroleum and gas reserves in about six or seven locations within Dailekh.

Even the earlier surveys indicated the potential of petroleum or gas here. Now, the second phase of the project is to determine the exact amount and quality by carrying out more sophisticated studies.

This current research project is a wholly grant-funded China pilot project executed under the technical and financial supervision of the Geological Survey of China. The initial estimated project cost was around NPR 2.5 billion, but due to the delays brought about by the COVID-19 pandemic and other circumstances, the cost has risen.

Nepal’s Department of Mines and Geology established a dedicated “Petroleum Exploration Promotion Project” to guarantee land acquisition, expansion in road and electricity access, and administrative coordination. Therefore, there were no significant delays due to local representatives, administrative agencies, or other stakeholders.

Following the preliminary success, stakeholders and residents are upbeat. According to Narendra Thapa, President of the Dailekh Chamber of Commerce and Industry, the project will enhance local-level employment opportunities through extraction, processing, supply chain, and technical activities, thereby complementing the development of an industry-friendly setting.

It is hoped that this project will be an historic opportunity for Nepal’s energy security. If the initial reserve estimations are found to be correct, Nepal can gradually free itself from fuel import dependency, and the country can generate and supply energy from domestic resources.