PM Oli orders swift action on Dailekh methane gas and Dhauwadi Iron mine production

KATHMANDU: Prime Minister KP Sharma Oli has issued a stern directive to accelerate the extraction and production of methane gas discovered in Dailekh and iron ore from the Dhauwadi mine in eastern Nawalparasi. During a high-level meeting held at his official residence in Baluwatar on Sunday, Oli instructed relevant ministries and agencies to initiate methane gas production trials within one year. “No delays or excuses will be tolerated. The government is fully committed to providing resources and support,” he declared.

The meeting saw the Ministry of Industry, Commerce, and Supplies present findings from a petroleum exploration project in Dailekh, conducted with technical and financial assistance from the Chinese government. According to a preliminary report by the China Geological Survey, the current drilling site in Dailekh holds a potential reserve of 112 billion cubic meters of methane gas.

The report also suggests a strong likelihood of additional gas deposits in surrounding areas. Hailing the discovery as a game-changer for Nepal’s energy sector, Oli emphasized that delays in harnessing this resource would be unacceptable. He urged officials to prioritize bringing the gas to market swiftly.

In the same meeting, Dhauwadi Iron Company Limited briefed the Prime Minister on the progress of feasibility studies and drilling at the Dhauwadi iron mine. The company reported an estimated reserve of 99 million tons of iron ore, a stockpile claimed to be sufficient to meet Nepal’s demand for the next century.

The company projected that steel and iron production could commence by 2085 BS (2028 CE) following standard procedures. However, Oli challenged this timeline, directing officials to expedite plans to begin production earlier and bring products to market ahead of schedule. He assured full governmental support in addressing legal, financial, and institutional hurdles to fast-track the project.

The discussions underscored Nepal’s push to leverage its natural resources to bolster economic self-reliance. A methane gas production breakthrough could reduce the country’s dependence on imported fossil fuels, easing pressure on foreign exchange reserves and stabilizing energy prices.

Similarly, domestic iron production from Dhauwadi could transform Nepal’s industrial landscape, reducing reliance on imported steel and fostering job creation. However, experts caution that both projects face significant challenges, including infrastructure deficits, technical expertise gaps, and environmental concerns that must be addressed to meet Oli’s ambitious deadlines.

The meeting was attended by key figures, including the Prime Minister’s chief advisor Bishnu Prasad Rimal, Industry Minister Damodar Bhandari, federal lawmakers from Dailekh, and senior government officials. Oli’s directive reflects his administration’s focus on resource-driven economic growth, though critics argue that the timelines may be overly optimistic given Nepal’s bureaucratic and logistical constraints.

As global energy markets remain volatile, with oil prices fluctuating due to geopolitical tensions, Nepal’s methane gas reserves could position the country as a regional energy player if developed efficiently.

Similarly, the Dhauwadi iron mine holds the potential to anchor a robust domestic steel industry, provided the government can navigate regulatory and operational complexities. For now, Oli’s call to action has set a high-stakes agenda, with the nation watching closely to see if these ambitious goals can translate into tangible results.