The discovery of a large-scale methane reserve in western Nepal offers new hope for the country’s energy self-sufficiency. A preliminary report shows a confirmed methane reserve of 112 billion cubic meters, which is approximately equivalent to 76 million metric tons. Additionally, an initial estimate from the other three wells indicates that there could be potential storage of 430 billion cubic metres of methane.

Nepal’s energy demand strongly depends on biofuels and petroleum imports from neighbouring countries. If this entire methane reserve can be successfully extracted and utilised, it could meet the country’s energy demand for the next 50 years. This discovery is great news for our energy sector, but faces several challenges, including engineering, techno-economic, environmental and political. The key question will be how to extract, process, distribute and utilise methane gas efficiently and sustainably.

Global energy trends

Many countries produce methane, with the United States leading the production at 967 trillion cubic metres per year, while our neighbours, China and India, have annual outputs of 180 trillion and 27 trillion cubic metres, respectively. The application and end-use of methane vary, ranging from fuel for industries and vehicles to generating electricity or synthesising chemicals, including hydrogen and ammonia. In Nepal’s context, the recent discovery raises a crucial question: Assuming that the government of Nepal would fully support and offer necessary backing for investment by engaging stakeholders, how can methane be effectively distributed and utilised to meet the country’s long-term energy demand? How can this be done in an efficient, economic and environmentally sustainable manner?

Nepal’s yearly total energy consumption is around 700,000 Tera Joules, with biofuels, oil and coal contributing 91 percent, and the remaining 8-9 percent energy coming from hydropower, solar, or wind. In this scenario, the discovery of methane represents a pivotal opportunity to shift the country’s current energy profile. A significant portion of biofuels and imported gas can be replaced by domestically harnessed methane.

Energy infrastructure

But the path to energy independence via methane utilisation is not straightforward. One pressing challenge to utilise methane is constructing supporting infrastructure to extract, store, process and distribute it. Establishing drilling plants and large-scale storage facilities and developing supply chains could cost billions of rupees as an up-front capital investment. The daily supply of millions of cubic metres of methane is not practical through the conventional medium of tankers plying roads. Instead, pipelines are required, and the cost of laying the pipelines in the hilly terrain of Nepal could be much higher than 100 million rupees per km.

Given the capital intensity of the project, the government must collaborate with local stakeholders, foreign partners and subject matter experts. A strategic and well-coordinated effort will be essential for this energy transition.

Impact on the environment

The impact on the environment and global warming is a key consideration regarding the proper utilisation of methane. Unlike major energy giants like the US, China, or India, Nepal has no history of producing, selling, exporting, or utilising methane commercially. Thus, it is crucial to learn from global energy leaders to understand the impact of methane usage on the environment and health. Interestingly, if we investigate the recent trend of countries such as the US, China and India, they are gradually limiting and lowering their methane utilisation as a primary energy source due to environmental concerns and greenhouse gas (GHG) emissions that cause global warming.

Notably, 1 kg of methane produces 28 kg of GHG or carbon dioxide equivalent. Utilising 430 billion cubic metres of methane in the next 50 years means Nepal will burn 6 million metric tons of methane annually. Consequently, an additional 150 million metric tons of GHG will be emitted annually. Nepal’s current GHG impact is 57 million metric tons per annum, which is negligible as compared to global powerhouses China, the US and India, which emit 16 billion, 6 billion and 4 billion metric tons per annum, respectively.

Nepal ranks 73rd worldwide in terms of annual GHG emissions and, on a relatively sensible scale, its GHG impact per capita is 1.82 metric tons, which makes Nepal one of the lowest GHG-emitting countries globally, with the rank of 165. Despite Nepal’s position in the global index as a low-emitting country, its GHG emissions have increased tremendously by more than threefold since the early 2000s.

While the rapid transition from conventional energy sources like methane and petroleum to entirely other green energy sources like solar, wind and hydropower is challenging, it’s essential for Nepal to consider intermediate pathways and strategies to utilise methane in an environmentally friendly manner. Developed countries, like the US, China, Japan, the UK and Germany, are implementing carbon-capture-and-storage technology while dealing with the emissions associated with the use of methane. Nepal can learn from recent advances in energy trends and methods to limit the carbon footprint and implement appropriate strategies to provide a clean, cheap and sustainable source of energy.

Responsible methane use

Nepal should look to the future with responsible planning, and stakeholders must address several crucial points as we move forward. The government, in partnership with domestic and external funding agencies, should ensure sufficient budget for up-front investment for exploration, testing, and building energy infrastructures for methane. Proper planning for the supply chain of methane and its derivatives should be considered, especially by accounting for engineering and techno-economic aspects of the methane storage and distribution system, including pipelines. It is crucial to establish national-level guidelines for methane utilisation, proper handling of greenhouse gas emissions, and to limit the carbon footprint. Continuous learning, collaboration and exchange of ideas should be encouraged in the subjects relating to energy policy and environmental impacts.

As Nepal embarks on this ambitious journey to energy self-reliance, it is crucial to find stability in the methane equation, i.e., a balance between economic growth and environmental sustainability. The country must learn from the global effort in methane extraction and carbon footprint management, and the government must ensure that it not only achieves energy self-reliance but also endorses its pledge to a greener and healthier future.