Dailekh. Signs of hope of brightening Nepal’s future are beginning to be seen from the waters of Dailekh. China’s Geological Survey Company has submitted a preliminary report of exploration of petroleum products and natural gas in Dailekh to the Government of Nepal.
It has been revealed that the jaljal area is a huge storage place of methane gas. The first drilling work, which started on May 15, 2018, was taken to a depth of 4,013 meters. The samples collected from there have been confirmed to contain 1.12 billion cubic meters of methane gas.
This is the preliminary result of only the first of the four possible wells. According to preliminary estimates of the remaining three wells, a total of 430 billion cubic meters of gas is estimated to be in the Jaljal area. It has the potential to meet Nepal’s gas needs for about 50 years.
According to Dinesh Kumar Napit, deputy director general of the Department of Mines and Geology and chief of petroleum exploration project, the work was started after the G2G agreement signed between Nepal and China in 2019. “The Government of Nepal has set aside 45 ropanis of government land in Jaljale area of Dailekh for exploration purposes, which is the deepest and most scientifically completed exploration project so far,” napit said.
According to him, the report received now is preliminary. More detailed testing is underway on gas quality, potential for commercial production and economic dividends. The Chinese company is preparing to submit a final report by December 2025. After that, the government plans to start commercial production testing by December.
The sight of gas and oil-like substances leaking from the soil of Dailekh is not new for the locals. However, efforts have been made since 2036 TO scientifically confirm it. The blockade imposed by India after the promulgation of the constitution in 2072 BS created a fuel crisis across the country. After this, the government was forced to be serious about the domestic energy sources. Against this background, Dailekh again came to the center of discussion.
This crisis created an opportunity. For the first time, Nepal focused seriously on the possibility of indigenous resource identification and exploration. The agreement signed between Nepal and China for petroleum exploration in February 2075 BS has not only carried a technological progress but also a strategic message.
In the initial investigation, Nepali and Chinese technicians confirmed that the gas flowing continuously in Shirsthan and Navisthan areas of Dailekh was petroleum products. According to the technicians, there are petrol and gas mines at six to seven places in Dailekh.
A survey conducted a long time ago also found that there was a possibility of petroleum products or gas here. In the next phase, its quantity and quality will be determined in detail. The current project is a fully funded pilot project of China. It is funded by the Geological Survey of the Chinese government with financial and technical support. Its initial cost was estimated at Rs 2.5 billion. The cost had also increased due to delay in implementation due to various reasons, including the COVID-19 pandemic.
The Department of Mines and Geology of the Government of Nepal had established the ‘Petroleum Exploration Promotion Project’ and facilitated land acquisition, expansion of road and electricity access and administrative coordination. As a result, there was no obstruction from the local people’s representatives, administrative machinery or any other party.
Dailekh residents and stakeholders are excited as the project has finally materialised. President of The Chamber of Commerce and Industry, Dailekh, Narendra Thapa, said that the human resources involved in excavation, processing, supply chain and technical works would increase employment opportunities at the local level and create an industry-friendly environment.
It is believed that this project can prove to be a historic opportunity for the country’s energy security. According to the initial estimates, if the storage is confirmed, Nepal will gradually get rid of the situation of relying on fuel imports and will be able to produce and distribute energy from domestic sources.
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