KATHMANDU: A preliminary study has identified over 1.12 billion cubic meters of methane gas in Dailekh, but well test analysis is required to determine its commercial viability.
The discovery was made in Bhairavi Rural Municipality-1 in Dailekh, located in Karnali Province. It is based on a geological survey by the China Geological Survey (CGS) and drilling conducted by CNPC Xibu Drilling Engineering Company.
According to the study, the gas contains over 90 % methane, a high-quality natural gas used for energy, cooking, vehicles and industrial purposes.
Natural gas, including methane, is formed over time from decomposed organic matter and is considered a cleaner alternative to traditional fuels. It belongs to the category of petroleum products, but the study found no signs of crude oil in the area.
The gas in Dailekh was found in three underground layers. Experts suggest, further tests called well test analysis are needed to determine how much usable gas can be produced. The final, detailed report is expected in December. Until then, the current figures are considered preliminary.
Drilling work began in late April 2024 and continued for nine months, reaching a depth of  4,130 meters. After the drilling was completed, rock samples were sent to China for lab testing, confirming the presence of methane.
Officials note that extracting and processing the gas will require significant technical and financial investment. Since Nepal does not have the resources to carry out the project alone, the Petroleum Act allows for international investment under a Production Sharing Contract model through competitive bidding.
The exploration work follows a 2016 agreement between Nepal and China under the Oil and Gas Resource Survey Project, initiated during the official visit of then Prime Minister KP Sharma Oli.
Although Dailekh has seen underground gas burning for years, this is the first large-scale scientific confirmation of a major natural gas reserve. The next step is to conduct production testing to determine the true potential of the reserve.
Nepal currently depends entirely on imported petroleum. Fossil fuels alone accounted for 18.87% of the country’s total imports in the last fiscal year. If the natural gas project in Dailekh moves forward as planned, it could significantly lessen Nepal’s reliance on petroleum imports.
