Methane gas in Kathmandu valley is associated with ground water that exists in the lake sediment of the Kathmandu valley. Initial exploration was carried out with the assistance of Japanese International Co-operation Agency (JICA). DMG explored this gas in 26 sq. km area in Kathmandu valley and proved 316 million cubic meter methane gas deposit. The purpose was to assess the available reserve and the possibility to use it as an alternative energy.


feasibility study was conducted in 1996/97 by a private consultant. The study concludes that the use of methane gas is viable for both domestic and industrial purposes. Based on the above results, DMG had invited proposals 5 times from the potential investors to bid for the development and commercialization of the gas resources for the benefit of society. But so far no one has taken such initiative. It is available for the potential investors to develop and commercialize for the benefit of the people of Kathmandu valley. Recently two companies applied for the promotion of Kathmandu natural gas.