“Dailekh Petroleum Exploration Update: Nepal Awaits Final Report on Massive Methane Gas Reserves to Transform Energy Independence”

Introduction: Nepal’s Energy Turning Point

Nepal has long depended on imported fuel to meet its growing domestic and industrial energy needs. But in the remote hills of Dailekh, a potential energy revolution is quietly taking shape. Recent exploration in the Jaljale region has confirmed the existence of vast methane gas reserves deep beneath the surface.

The country now awaits the much-anticipated final report, expected by December 2025, which could determine whether Nepal is ready to step into a new era of energy independence.

Discovery in Dailekh: Methane Found at Historic Depths

The exploration program began in 2021, led by Nepal’s Department of Mines and Geology in partnership with China’s Geological Survey and CNPC Xibu Drilling Engineering Co. The project drilled Nepal’s deepest well ever, reaching 4,013 meters underground.

Samples taken from this first test well revealed approximately 112 billion cubic meters of methane gas. Further analysis of the other three potential wells has suggested that total reserves could reach as high as 430 billion cubic meters—a staggering volume that could reshape the nation’s entire energy future.

For a country that currently spends billions importing liquified petroleum gas (LPG) every year, the discovery offers a glimmer of hope for cost savings, economic growth, and energy security.

Why the Dailekh Find Matters for Nepal

This discovery is not just about numbers—it could change the way Nepal manages its economy and natural resources. If developed properly, methane reserves in Dailekh could:

• Cut reliance on imports: Billions of rupees spent each year on foreign LPG could stay in the domestic economy.
• Boost local employment: Drilling, refining, transport, and downstream industries would create thousands of jobs in western Nepal.
• Support agriculture and industry: Methane can be used to produce fertilizers, support industrial feedstock, and power local factories.
• Introduce cleaner fuel alternatives: Conversion to Compressed Natural Gas (CNG) for transport could reduce costs and greenhouse emissions.

As Prakash Luintel, geologist and spokesperson for Nepal’s Petroleum Exploration Project, highlighted:

“For the first time in our history, methane has been confirmed at this depth. This discovery could play a crucial role in reducing dependence on imports and boosting domestic industries.”

Awaiting the Final Report

the video by WION

The exploration team from China is preparing a detailed geological and geophysical report, which will be handed over to the Government of Nepal by December 2025.

This document will provide comprehensive analysis—such as reserve quality, extraction feasibility, infrastructure needs, and commercial production viability. Only after its submission can Nepal chart a practical roadmap for tapping into these reserves.

Government and Institutional Involvement

To ensure the project moves forward smoothly, the Ministry of Industry, Commerce, and Supplies formed a special committee led by Nepal Oil Corporation (NOC) Director, Binitmani Upadhyay. Other members include:

• Dharma Raj Khadka, Senior Geologist, Department of Mines and Geology
• Manish Karna, Representative of the Petroleum Exploration Project
• Deepti Paudel, Assistant Manager, NOC
• Bhakta Bhandari, Mechanical Engineer, NOC

This committee has already conducted site visits and is expected to submit its own recommendations to the government soon. Their findings will help shape decisions on whether Nepal is ready for commercial production and large-scale investment.

Strategic Value for Nepal’s Future

The Dailekh methane reserves could be a game-changer across multiple sectors:

1. Household Energy Security – Cheaper domestic cooking fuel could replace imported LPG, making life easier for ordinary households.
2. Fertilizer Production – Local methane supply could support fertilizer plants, reducing dependence on costly imports that burden Nepal’s farmers.
3. Transportation Sector – Development of CNG infrastructure could transform public transport and private vehicle use.
4. Industrial Growth – Energy-intensive industries could thrive with reliable, affordable local energy.
5. Employment Opportunities – From drilling to refining to distribution, thousands of Nepali workers could benefit directly.

Timeline of the Exploration

Voices from Dailekh: Hope and Urgency

For the people of Dailekh, this discovery is about more than just numbers on a government report. It represents long-delayed development and the possibility of better livelihoods.

Local resident Dhirja Thapa, age 66, expressed her hopes plainly:

“The land has already been handed over for drilling, but development hasn’t reached us yet. If these reserves bring industries and jobs, then all our sacrifices will finally make sense.”

Such sentiments reflect the deep anticipation within the local community, which has been waiting for years for exploration promises to translate into tangible development.

Conclusion: A Defining Moment for Nepal

The discovery of massive methane reserves in Dailekh could mark a turning point in Nepal’s economic and energy history. With the final report due in December 2025, the nation stands at the edge of an opportunity that could reduce dependency on imports, foster rural development, and create new industries.

If handled wisely, Dailekh’s methane discovery will not just power homes and industries—it could fuel a more self-reliant Nepal for generations to come.