A preliminary study has found around 112 billion cubic meters of natural gas in Jaljale, Dailekh, Nepal. This discovery has excited government officials, as Chinese experts estimate the gas could meet Nepal’s needs for the next 50 years.
The exploration began on Baisakh 28, 2080 (May 2023) when a Chinese team from the China Geological Survey and CNPC Xibu Engineering Company started drilling up to 4,000 meters deep in Dailekh. During the process, the smell of gas was detected underground. Rock samples were taken to China for further testing to check the quantity and quality of the gas and whether it is suitable for commercial use.
Industry Minister Damodar Bhandari confirmed that the initial report indicates the presence of methane gas — a clean fuel that can replace petrol and diesel. According to Prakash Luintel, an official from the Department of Mines and Geology, methane gas can be used to run vehicles, generate electricity, and even be processed to make hydrogen and ammonia gas for fertilizer production.
In several places in Dailekh, natural flames have been observed, which locals once believed to be spiritual phenomena. Experts have now confirmed these flames were caused by flammable gas escaping from underground.
Minister Bhandari said once the detailed report is received — expected by December, or hopefully sooner — Nepal will begin test production of the gas. The test phase is planned to last 75 days and is estimated to cost around 65 billion rupees.
If Nepal can produce and use its own natural gas for commercial purposes, it could greatly boost the country’s economy, according to Bhandari.
Background: Why Nepal Invited China for Exploration
During the 2015 Indian blockade, Nepal faced a major fuel crisis. This pushed the then government, led by Prime Minister K.P. Sharma Oli, to explore domestic fuel alternatives. China was invited to study Nepal’s potential for petroleum and gas.
A Chinese team collected samples from several possible sites, including Shristhan, Navisthan, Dhuleshwor, and Paduka in Dailekh. Although then Industry Minister Som Prasad Pandey had promised gas extraction within six months, it took nearly a decade to begin drilling.
Nepal has identified 10 petroleum exploration blocks across the country. While studies began in the late 1970s with World Bank support, systematic petroleum exploration officially started in 1997. Most of the petroleum potential is believed to lie in the Tarai and Siwalik regions, but Dailekh is currently the only site where gas drilling has taken place.
Minister Bhandari said there is potential for even more gas if drilling is done in three additional locations in Dailekh.
