Chinese geological team to submit final report by December 2025
KATHMANDU, JUNE 19
A preliminary report by the China Geological Survey (CGS) has identified a significant reserve of methane gas in Jaljale, Dailekh, raising the possibility of Nepal tapping into domestic sources of energy.
The findings were shared with the Government of Nepal following exploration under a bilateral agreement signed in 2019 between Nepal and China. The first drilling operation, launched on May 11, 2021, reached a depth of 4,013 metres, revealing an estimated 1.12 billion cubic metres of methane in a single well.
According to Dinesh Kumar Napit, Deputy Director General at the Department of Mines and Geology and head of the Petroleum Exploration Project, the site is the deepest and most scientifically advanced exploration carried out in Nepal to date. The government has allocated 45 ropanis of land for the project.
The report represents initial findings from just one of four targeted wells. Based on early estimates, the total reserve in the area could reach 430 billion cubic metres, which could potentially meet Nepal's gas demand for around 50 years.
Further testing is underway to assess gas quality, commercial viability, and economic potential. The final report from the Chinese team is expected by December 2025, with plans to begin commercial production testing thereafter.
Locals in Dailekh have long reported natural seepage of gas and oil-like substances, but formal exploration only began in recent years. Scientific confirmation of petroleum potential was first attempted in 1979, and renewed interest emerged after the 2015 fuel crisis linked to the India-Nepal border blockade.
This project-entirely grant-funded by the Chinese government-is considered a pilot initiative, with the CGS providing technical and financial support. The initial estimated cost was Rs 2.5 billion, though delays, including those caused by the COVID-19 pandemic, led to cost escalations.
The Department of Mines and Geology has been overseeing land acquisition, infrastructure development, and coordination under the Petroleum Exploration Promotion Project in Dailekh.
(With inputs from RSS)
