- Dailekh
In a breakthrough development for Nepal’s energy sector, a vast reserve of methane gas has been discovered in the Jaljale region of Dailekh district. According to preliminary findings from a geological survey conducted by the China Geological Survey (CGS), the reserve holds an estimated 1.12 billion cubic meters of methane gas — a volume potentially sufficient to meet Nepal’s energy needs for the next 50 years.
This discovery has injected a wave of optimism into a country long weighed down by skepticism regarding domestic energy production. The joint Nepal-China gas exploration project began in April 2023 (Baisakh 2080 B.S.) under a bilateral understanding signed during Prime Minister KP Sharma Oli’s tenure in 2015. Despite general criticism of delays in Chinese-backed infrastructure projects, progress on this particular exploration has been remarkably swift. Funded entirely by the Chinese government, the exploration project is reported to have cost around NPR 3 billion. A full geological report is expected to be published within this year.
Nepal’s history with petroleum exploration stretches back more than four decades, with multiple surveys conducted across regions from Morang to Dailekh. Until now, these efforts had largely failed to yield any commercially viable results, leaving a trail of disappointment. The Dailekh finding, however, has reversed that trend, offering both concrete evidence of resources and renewed hope for energy self-sufficiency. Experts suggest that commercial extraction could begin within a year of the final report’s publication, marking a potential turning point in the nation’s energy landscape.
Currently, nearly 18 percent of Nepal’s total imports are tied to petroleum products. In the fiscal year 2080/81 B.S. alone, the country spent over NPR 268 billion on fuel imports, with around NPR 55–60 billion allocated to liquefied petroleum gas (LPG) for household cooking purposes. The newly discovered methane gas can be used not only for cooking but also as fuel for vehicles and as a raw material in chemical fertilizer production. Notably, the gas type found in Dailekh is also used internationally in high-grade rocket fuel, indicating its quality and versatility.
Despite the optimism, transitioning from discovery to production will require significant investment in infrastructure, technology, and skilled manpower. While Nepal may not have the capacity to develop this industry entirely on its own, the finding opens doors for foreign investment and public-private partnerships in energy development. If efficiently harnessed, the reserve could drastically reduce Nepal’s dependence on imported fuel and redirect billions of rupees back into the domestic economy, bolstering efforts toward national economic resilience.
The gas was discovered across four wells in Dailekh, making it Nepal’s largest confirmed natural gas reserve to date. With its potential to transform key sectors such as household energy, transportation, agro-industrial production, and broader power generation, the discovery sets the stage for a major shift in Nepal’s energy future. What remains now is timely and decisive action from the government and stakeholders to turn this opportunity into long-term national benefit.