KATHMANDU, Nov 6: A study has revealed that the natural gas discovered in Dailekh has multiple uses. Following an exploration, a Chinese team had found methane gas in Jaljale, Bhairabi Rural Municipality–1 of Dailekh district.
A government task force has prepared a report suggesting that the gas can be used as a multipurpose source of energy. According to Binitmani Upadhyaya, coordinator of the task force, the gas can be utilized for power generation, fertilizer (urea) production, cooking, and transportation. “The natural gas discovered in Dailekh can be used for multiple energy purposes,” said Upadhyaya, adding that further investment and exploration are required.
The Ministry of Industry, Commerce, and Supplies had formed the study committee under the coordination of Nepal Oil Corporation (NOC) Director Upadhyaya to conduct a preliminary study on the commercial utilization of the gas. The committee members included geologist Dharma Raj Khadka, and chemical engineers Manish Karna and Deepti Paudel.
The committee has recommended conducting detailed techno-economic studies, engineering surveys, designs, and environmental assessments, as the current findings are only preliminary. At present, Nepal imports all its gas from India. Although there has been talk of establishing a chemical fertilizer plant in Nepal, it has not been implemented yet. The committee has recommended prioritizing the use of Dailekh’s gas for fertilizer production.
Upadhyaya said that producing urea fertilizer from natural gas would be economically and technically viable. “There is no chemical fertilizer industry in the country yet,” he said. “We should focus on establishing one using this gas.”
The task force has suggested operating a fertilizer plant with a production capacity of around 2,200 metric tons per day. The report states that producing up to 3,500 metric tons per day would yield faster economic returns.
For a fertilizer plant with a daily production capacity of 2,200 metric tons, around 410 to 452 million cubic meters of gas annually, and about 1,069 to 1,122 metric tons of nitrogen gas daily would be required. The plant would also need 25 to 30 megawatts of electricity, which could be supplied by building a gas-based power plant in the same area.
While preliminary studies estimate Dailekh to have around 112 billion cubic meters of natural gas, the government has yet to determine how to proceed with extraction and commercial production. The Chinese experts’ team concluded that the Jaljale gas reserve could last for about 50 years.
The exploration was carried out by a Chinese team in coordination with the Department of Mines and Geology, based on preliminary assumptions of petroleum deposits. However, the government has not yet assigned any agency to take charge of further study, extraction, and commercialization of the gas.
As Nepal continues to import gas from abroad, calls are growing for the government to utilize the confirmed domestic reserves. Although the NOC was assigned to conduct the preliminary study, the government has yet to decide which body will lead the future exploration and production.
Experts have suggested utilizing NOC’s expertise, as it is the government-owned company responsible for fuel trading in Nepal. NOC Managing Director Dr. Chandika Prasad Bhatta said the corporation is ready to take responsibility if assigned. “Since NOC has the expertise in fuel trading, we are prepared to utilize the gas if the government entrusts us with the task,” he said.
The drilling in Dailekh went as deep as 4,013 meters for the study. The report indicates that the site contains around 112 billion cubic meters of gas, with three additional storage sites identified in the area.
After India imposed an economic blockade in 2015 , discussions about alternative energy sources began. Following that, Nepal requested China to study petroleum and gas prospects. The Chinese team started exploration in 2019B. The independent employees’ union of NOC has also urged the government to hand over the responsibility of natural methane gas extraction and commercialization to NOC.
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