Kathmandu, Jun 19 (PTI) A preliminary report published on Thursday has revealed that the total methane gas reserves in western Nepal could reach approximately 430 billion cubic metres, enough to possibly meet the Himalayan nation's demand for gas for around 50 years.

The report, prepared by the China Geological Survey (CGS), presented initial findings from just one of the four targeted wells in Jaljale area of Dailekh district, raising the possibility of the Himalayan nation tapping into domestic sources of energy, according to government daily Gorkhapatra.

The findings were shared with the government of Nepal on Thursday.

The exploration was carried out under a bilateral agreement signed in 2019 between Nepal and China.

“The first drilling operation, launched on May 11, 2021, reached a depth of more than 4,000 metres, revealing an estimated 1.12 billion cubic metres of methane in a single well,” the report said.

“The report represents initial findings from just one of four targeted wells. Based on early estimates, the total reserve in the area could reach 430 billion cubic metres, which could possibly meet Nepal's demand for gas for around 50 years,” Gorkhapatra said.

Dinesh Kumar Napit, Deputy Director General at the Department of Mines and Geology, and head of the Petroleum Exploration Project said that the site is the deepest and most scientifically advanced exploration carried out in Nepal to date.

The government has allocated 45 ropanis of land equivalent to 2,50,000 sq ft area, which is less than 1 sq km, for the project. Further testing is underway to assess gas quality, commercial viability, and economic potential.

“The final report from the Chinese team is expected by the end of this year, with plans to begin commercial production testing thereafter,” the newspaper said.

This project – entirely grant-funded by the Chinese government – is considered a pilot initiative, with the CGS providing technical and financial support.

The initial estimated cost was Rs 2.5 billion, though delays caused by the COVID-19 pandemic, led to escalation. PTI SBP NPK NPK

Bilateral energy exploration agreement enables domestic methane prospect subject to further testing and commercial viability assessments. Preliminary exploration in western Nepal indicates a large methane accumulation in the Jaljale area based on initial single well data, with further testing required to assess gas quality and commercial recoverability. The project is executed under a bilateral agreement with China, grant funded by the foreign partner, and involves government allocation of land and oversight by domestic geological and petroleum authorities pending a final technical report and decisions on production testing.