Jaljale: Jaljale of Dailekh has shown signs of hope for a bright future for Nepal in terms of mineral fuel.
According to National News Agency Nepal, the China Geological Survey (CGS) has recently submitted the preliminary report of the exploration of petroleum products and natural gas in Dailekh to the Government of Nepal. The report revealed that the Jaljale area has a big reserve of methane gas.
The first drilling operation commenced at the site on May 11, 2021, reaching a depth of 4,013 meters. Testing of the collected samples confirmed the storage of 1.12 billion cubic meters of methane gas. This result is from the first well among a total of four potential wells in the area. Initial estimates for the other three wells indicate a projected total of 430 billion cubic meters of gas in the Jaljale area, which shows the potential to meet Nepal’s gas requirements for approximately 50 years.
According to Dinesh Kumar Napit, the Deputy Director General of the Department of Mines and Geology and head of the Petroleum Exploration Project, the exploration work started after a government-to-government agreement between Nepal and China in 2019. The Government of Nepal has allocated 45 ropanis of government land in the Jaljale area for exploration purposes, marking it as the deepest and most scientifically completed exploration project so far.
Napit stated that the report received is preliminary, and further detailed tests are underway to assess the quality of the gas, the feasibility of commercial production, and potential economic returns. The Chinese company is preparing to submit the final report by December 2025, after which the government plans to initiate commercial production testing by December.
The presence of natural gas and oil seeping from the ground in Dailekh is familiar to locals. However, scientific confirmation efforts have been ongoing since 1979. The fuel crisis caused by the blockade imposed by India after the new constitution was promulgated in 2015 compelled the government to seriously consider domestic energy sources, bringing Dailekh into focus once more.
This situation presented Nepal with an opportunity to concentrate on identifying and extracting indigenous resources. The agreement signed between Nepal and China in January 2019 for petroleum exploration carries a strategic significance beyond technical progress. Preliminary exploration confirmed the gas emissions in Shirsthan and Nabhisthan of Dailekh as indicators of an underground petroleum reserve.
Technicians estimate the presence of petrol and gas reserves at six to seven sites in Dailekh. The current project is a pilot initiative supported by full grant assistance from China, operational with financial and technical support from the CGS of the Chinese government. The preliminary estimated cost was Rs 2.50 billion, which increased due to delays in implementation caused by various factors, including the COVID-19 pandemic.
The Department of Mines and Geology of the Government of Nepal facilitated activities related to land acquisition, road and electricity access expansion, and administrative coordination by establishing the ‘Petroleum Exploration Promotion Project’ in Dailekh. This project could become a historic opportunity for the country’s energy security, potentially allowing Nepal to eventually produce and supply energy from domestic sources.