A preliminary study has found an estimated 112 billion cubic metres of natural gas in Dailekh district of western Nepal, officials said, potentially marking a significant step in Nepal’s search for domestic energy sources.

According to the Department of Mines and Geology, the discovery was based on a geological survey conducted by the China Geological Survey and exploratory drilling by CNPC Xibu Drilling Engineering Company, a Chinese state-owned firm.

The initial report indicates a large presence of methane gas at the Jaljale site, with findings suggesting it could supply Nepal’s gas demand for the next 50 years. Officials said a final, detailed report is expected by December.

“We conducted drilling up to a depth of 4,013 metres and sent one-metre core samples for laboratory tests,” said Dinesh Kumar Napit, deputy director general at the department. “Now, further steps will require intergovernmental agreements between Nepal and China.”

Chinese experts have taken rock samples back to China to test the volume and quality of the gas.

“Initially, exploration was based on the assumption of petroleum reserves. We found a significant amount of gas,” Napit said. “The preliminary report is promising, and this opens the way for commercial testing.”