Nepal's Dailekh Gas Reserve: A Treasure Worth Extracting

Nepal, the landlocked country nestled in the Himalayas, is sitting on a treasure trove of natural gas in the Dailekh region. Preliminary studies indicate that the area has approximately 11.2 billion cubic meters of gas, sufficient to last for 50 years. A team of Chinese experts, in coordination with the Department of Mines and Geology (DMG), conducted exploration in the area and suggested that the gas could be commercially produced. However, the government has yet to assign any agency the responsibility for further study, research, extraction, or commercialization.

Key Takeaways:

• The Dailekh region has approximately 11.2 billion cubic meters of natural gas, which could last for 50 years.
• A team of Chinese experts, in coordination with the Department of Mines and Geology (DMG), conducted exploration in the area and suggested that the gas could be commercially produced.
• The government has yet to assign any agency the responsibility for further study, research, extraction, or commercialization of the gas.
• The Nepal Oil Corporation (NOC), a state-owned enterprise established to trade fuels, is expected to play a crucial role in further studies and production of the gas.
• Former Chief Secretary Baikuntha Aryal and Managing Director Dr. Chandika Prasad Bhatta of NOC emphasize the need for a concrete plan and detailed study to properly utilize the discovered gas.
• The NOC has stated that it is ready to take responsibility for the commercial production of the gas, and the expertise of India's IOC, a partner in the fuel trade, could also be utilized.
• The NOC Independent Employees' Union has submitted a seven-point memorandum to MD Bhatta, urging action to ensure the extraction and marketing of Dailekh gas.
• The union has highlighted the immediate need to form a committee to identify potential areas for methane gas use and develop a market strategy.

Statistics:

• 11.2 billion cubic meters: the estimated volume of natural gas in the Dailekh region.
• 50 years: the estimated duration for which the natural gas in the Dailekh region could last.
• 2015: the year when discussions about alternatives to petroleum began after India imposed a blockade.
• 2019: the year when the Chinese team, including experts, began exploration in the Dailekh region.
• 4,013 meters: the depth to which drilling for gas was conducted in the Dailekh region.

Sources:

• Republica
• HT Digital Content Services
• Department of Mines and Geology (DMG)
• Nepal Oil Corporation (NOC)
• India's IOC (Indian Oil Corporation)
• NOC Independent Employees' Union