Jun 19, Kathmandu - Promising signs of energy self-sufficiency are emerging from Jalajle in Dailekh, where preliminary findings indicate substantial reserves of methane gas. The China Geological Survey Company has submitted an initial report on petroleum and natural gas exploration in the area to the Nepal government.

The exploration revealed that Jalajle is a significant storage site for methane gas. The first drilling operation, initiated on 28th Baisakh 2078 BS, reached a depth of 4,013 meters. Testing of samples collected from this well confirmed the presence of approximately 1.12 billion cubic meters of methane gas. This is only the initial outcome from the first of potentially four wells. Based on preliminary estimates for the remaining three wells, the total reserves could amount to approximately 430 billion cubic meters of gas, which could meet Nepal’s energy needs for about 50 years.

Dinesh Kumar Napit, Deputy Director General of the Department of Mines and Geology and Head of the Petroleum Exploration Project, stated that the work was initiated following the Nepal-China G2G agreement in 2019. “The government of Nepal has allocated 45 ropanis of land in Jalajle, Dailekh, for exploration. This project is the deepest and most scientifically comprehensive exploration carried out to date,” he explained.

Napit added that the report received so far is preliminary. Further detailed analyses are underway to assess the quality of the gas, the potential for commercial production, and the economic viability. The Chinese company involved plans to submit a final report by December 2025, with discussions ongoing about starting commercial production trials within the same month.

Locals in Dailekh are familiar with the sight of natural gas and oil-like substances leaking from the ground. Scientific exploration efforts have been ongoing since 2036 BS, especially after the 2072 BS constitution and the subsequent fuel crisis caused by the Indian blockade. This situation prompted the Nepalese government to focus more seriously on indigenous energy sources, bringing Dailekh back into the spotlight.

Historical surveys previously indicated the potential of petroleum or gas reserves in the region, and the current project builds on those findings. The ongoing exploration is a fully funded pilot project supported by the Chinese government’s Geological Survey, with an initial budget of around 2.5 billion Nepalese rupees. The project faced delays due to various reasons, including the COVID-19 pandemic, which caused cost increases.

The Nepal Department of Mines and Geology established the ‘Petroleum Exploration Promotion Project’ to facilitate land acquisition, infrastructure development, and administrative coordination, ensuring smooth progress without obstruction from local authorities or communities.

Residents and local organizations are optimistic about the project’s future. Narendra Thapa, President of the Dailekh Chamber of Commerce and Industry, highlighted that the project is expected to create employment opportunities and foster a more industry-friendly environment through the involvement of local manpower in excavation, processing, and technical activities.

This exploration could prove to be a historic milestone for Nepal’s energy security. Confirmed reserves as per initial estimates could enable Nepal to reduce its dependency on fuel imports and develop domestic energy sources for production and distribution, paving the way for a self-reliant energy future.