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Kathmandu, Aug 14: A preliminary survey by Chinese experts has confirmed the presence of 112 billion cubic meters of natural gas in Dailekh, enough to last 50 years. The gas lies in the reservoir of Bhairavi Rural Municipality-1, yet confusion persists over who will lead its further exploration and commercial production.

The study, coordinated with Nepal’s Department of Mines and Geology, followed earlier assumptions of petroleum deposits. Despite confirmation of large reserves, the government has not assigned any agency to carry out detailed research, exploration, or commercialization, nor has it prepared a concrete plan.

Information Officer Dr. Mukunda Bhattarai stressed that Nepal imports gas while having significant reserves at home, urging proper utilization. Former Chief Secretary Baikuntha Aryal said Nepal Oil Corporation (NOC) should take charge, given its fuel trading expertise. “The government must decide on the way forward,” he said.

NOC, which imports fuel from Indian Oil Corporation (IOC) for domestic distribution, has expressed readiness to lead the project. Executive Director Dr. Chandika Prasad Bhatta said the corporation has the required expertise and could also draw on IOC’s technical knowledge. He emphasized the need for a final decision on the gas’s commercial viability.

The Chinese team’s drilling reached a depth of 4,130 meters, revealing the main deposit and three other storage sites. If commercially extracted, the gas could significantly contribute to Nepal’s economy. The project traces back to the 2072 BS blockade, when Nepal began seeking alternatives to petroleum imports. In 2076 BS, the government invited Chinese experts to conduct a detailed survey.

The NOC Independent Employees Union has also urged swift action. Led by President Bikash Bakhti, the union submitted a seven-point demand to Bhatta, calling for domestic investment, strategic partnerships, and phased extraction, processing, and marketing plans. Bakhti said a committee should be formed immediately to identify uses for methane gas and develop a market strategy.

General Secretary Sandeep Baral highlighted the importance of aligning the project with clean energy goals. He proposed creating a subsidiary under NOC to handle production, processing, transportation, and sales. The union warned that without adapting to global energy trends, NOC’s services could face challenges in the coming years.

With some gas already released in parts of Kathmandu Valley, the union urged feasibility studies there as well. Nepal currently imports all of its LPG for household and industrial use from India.

People’s News Monitoring Service