Bolivia discovers natural gas field with reserves of 1.7T cubic feet
Date
7/16/2024 4:20:42 AM
(MENAFN) Bolivia has announced a significant discovery of a natural gas field with estimated reserves of 1.7 trillion cubic feet, marking the country's largest find of this resource since 2005, according to President Luis Arce. This discovery comes at a critical time as Bolivia grapples with a severe economic crisis exacerbated by a recent attempted coup and a sharp decline in Natural gas exports, which were once a cornerstone of the economy.
The newly discovered reserves are substantial enough to meet the annual gas consumption of countries like Mexico or Italy, based on 2020 figures from the U.S. energy Information Administration. President Arce revealed during a public event that this "mega-field" is located north of the capital, La Paz, following a $50 million investment in exploration efforts. He emphasized that this find represents the most significant gas discovery for Bolivia since 2005.
However, the president did not provide details on how this new discovery will impact the country’s overall gas reserves, as the state oil company, YPFB, has engaged a consulting firm to evaluate Bolivia's proven and probable reserves. Once a primary source of national income, gas exports were overtaken by gold exports in 2021. Arce has acknowledged that the decline in gas production is largely due to a lack of exploration and insufficient efforts to replenish the country’s reserves over the past decade.
Current data from YPFB indicates that Bolivia produces approximately 35 million cubic meters of gas daily, which is exported mainly to Brazil and Argentina while also serving the domestic market. The shortage of U.S. dollars in Bolivia has resulted in severe fuel shortages, driving up living costs and leading to widespread protests across the nation. This new discovery may provide a much-needed boost to the economy, but its long-term impact remains to be seen as the country navigates these complex challenges.
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