Bolivia unveils largest natural gas discovery since 2005

Bolivia has announced its largest natural gas discovery since 2005, uncovering a massive field with reserves totaling 1.7 trillion cubic feet.

This discovery comes amid Bolivia's economic challenges exacerbated by a severe shortage of US dollars, stemming from a significant decline in natural gas exports, once a pillar of its economy, Caliber.Az reports citing the foreign media.

Arce described the newly found reserve, located north of La Paz, as a "mega-field" resulting from a $50 million investment in exploration. This find is substantial enough to meet the annual energy needs of countries like Mexico or Italy, based on 2020 consumption figures from the US Energy Information Administration.

The president emphasized that this discovery marks Bolivia's most significant gas find in nearly two decades, though specific details on how it will impact Bolivia's overall reserves await assessment by YPFB, the state oil company hiring a consulting firm for the evaluation.

Once a major revenue source, gas exports were overtaken by gold exports in 2021. Arce acknowledged the decline in gas production due to insufficient exploration efforts over the past decade. Presently, Bolivia produces 35 million cubic meters of gas daily, supplying Brazil and Argentina while meeting domestic demand.

The scarcity of dollars in Bolivia has led to severe fuel shortages, escalating living costs, and triggering widespread protests.

Bolivia's natural gas industry has historically played a pivotal role in its economy and geopolitical landscape. The country possesses significant natural gas reserves, primarily located in the southern regions of Tarija, Chuquisaca, and Santa Cruz, as well as in the northern regions near La Paz and Cochabamba.

Bolivia's proven natural gas reserves have been estimated at around 10.7 trillion cubic feet (Tcf), making it one of the largest holders of natural gas reserves in South America. The country's gas fields primarily produce methane and include major fields like San Alberto, San Antonio, and Margarita-Huacaya.

Gas production in Bolivia peaked in the mid-2000s, with exports predominantly directed to Brazil and Argentina through extensive pipeline networks. These exports were crucial for Bolivia's revenue, contributing significantly to its GDP and government budget.

However, in recent years, Bolivia has faced challenges in maintaining its gas production levels and export volumes due to various factors, including declining reserves in mature fields and reduced exploration and investment. The shift in global energy markets, coupled with domestic economic and political factors, has also impacted Bolivia's gas sector.

The recent discovery of a significant gas field north of La Paz, as announced by President Luis Arce, holds promise for revitalizing Bolivia's gas industry and potentially boosting its economic fortunes. This underscores Bolivia's continued relevance in the global energy landscape and its ongoing efforts to leverage its natural resources for sustainable development and economic stability.