KATHMANDU: A large reserve of natural gas has already been confirmed beneath the Jaljale area of Bhairavi Rural Municipality-1 in Dailekh district, but delays in moving forward with the second phase of the project have pushed the nationally significant initiative into uncertainty.
Once widely discussed after preliminary studies indicated enough natural gas reserves to meet Nepal’s energy needs for decades, the project has slowed due to the lack of a clear implementation timetable.
The issue was strongly raised during a joint meeting held on May 17 at Mahabu Lekh involving local representatives, district administration officials, and security chiefs from Dailekh and Kalikot districts.
The meeting passed a decision urging the government to determine the actual capacity of petroleum resources in Jaljale and accelerate the extraction process.
The exploration work has been carried out since 2019 by the China Geological Survey with financial assistance of around Rs 2.17 billion provided by the Chinese government.
According to a report submitted by the Chinese technical team to the Nepal government, the Jaljale area contains an estimated 80.7 billion cubic meters of natural gas underground.
Experts estimate that the reserve could fulfill Nepal’s gas demand for nearly 50 to 60 years.
Under the coordination of the Department of Mines and Geology, drilling work reaching a depth of 4,013 meters — the deepest drilling project ever conducted in Nepal — has already been completed successfully in the area.
Project Information Officer Prakash Luintel said the Chinese side has already submitted the first-phase technical report.
However, he explained that the next crucial step involves final testing of the gas productivity and its commercial viability.
Since the project is being implemented under a government-to-government framework between Nepal and China, Nepal has already sent a formal request letter to the Chinese side regarding the next phase.
According to Luintel, progress has been delayed because Nepal is still awaiting an official response and clear work schedule from China.
Experts say that if gas extraction begins in Dailekh, Nepal could save billions of rupees currently spent on imported fuel.
The methane gas produced from the site could be used as compressed natural gas (CNG) for vehicles, industrial fuel, and even as an alternative to cooking gas for households.
They also argue that domestic gas production would strengthen Nepal’s energy security during fuel price hikes and potential supply disruptions.
Nabin Yogi, chairperson of the Dullu Panchkoshi Area Development Institution, described the project as a major opportunity not only for Dailekh but for Nepal’s broader economic transformation.
He urged the government to place the project under “top national priority” in the upcoming fiscal year 2026/27 policies and programs and move it ahead through a fast-track approach.
Yogi also stressed the need to ensure employment opportunities and meaningful participation for local residents during extraction work.
At the same time, he called for the protection of the historically and religiously important Panchkoshi Jwala area, including Shirsthan, Nabhisthan, and Padukasthan.
The historic meeting held at Mahabu Lekh, located at an altitude of 4,168 meters above sea level, also passed a six-point joint commitment related to petroleum extraction, infrastructure, and regional development.
The meeting demanded adequate budget allocation from federal and provincial governments to complete and upgrade the remaining track of the strategically important Mahabu road section, which is expected to connect Nepal, India, and China through a shorter route.
Participants at the meeting, including Karnali Province Deputy Speaker Yashoda Neupane, Narayan Municipality Mayor Loman Sharma, Mahabu Rural Municipality Chairperson Jung Bahadur Shahi, Naumule Rural Municipality Chairperson Chhabi Ram Subedi, and Mahawai Rural Municipality Chairperson Khemraj Singh, described the Mahabu road as a “lifeline” for Karnali’s prosperity.
They stated that the road would significantly shorten the distance between Jamunaha in India and Nakchenagla on the Chinese border.
The meeting also passed proposals related to the development of the religious site Mahawai Dham, construction of alternative roads, border security, and the development of the Mahabu region as an environmental hub.
Despite the importance of the area, poor road conditions and limited transport infrastructure mean that traveling from Dailekh headquarters to Mahabu still takes nearly 16 hours.
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