2024-07-16 14:24:38
La Paz: The cash-strapped South American country of Bolivia has found a huge treasure that could change its fortunes. Bolivian President Luis Arce on Monday announced the discovery of huge natural gas reserves in the country. It is being described as the biggest discovery in nearly two decades, which could help reverse falling production in the cash-strapped country. President Arce has said that this reserve area located just north of the capital could help revive the gas industry. He called this reserve a mega-field.
1.7 trillion cubic meters of gas
The president said the field contains 1.7 trillion cubic meters of gas, with a potential market value of $6.8 billion. “This is the beginning of a new chapter for the northern sub-Andean region, which offers hope to maintain our country as an important gas exporter,” Arce said. The reserves have come as a great relief to Arce, who has been facing anger from Bolivians over fuel and foreign currency shortages. “This is the most important discovery since 2005,” he said.
Was included in the world’s top 10 gas producers
Bolivia’s state energy company YPFB said on Monday it had invested $50 million in new exploration that led to the discovery of a new natural gas field. It said the field covers several areas north of the administrative capital La Paz and will add to the country’s existing gas reserves. Bolivia’s gas reserves were estimated at 8.7 trillion cubic meters in 2019. There is no public data available since then. Bolivia was once among the world’s top 10 natural gas producers.
Investment in exploration projects by Bolivia’s state-owned energy company has declined in recent years and natural gas extraction has slowed sharply. Bolivia spends a large amount of the country’s gas reserves in subsidies. The economic model introduced under Arce’s arch political rival, former President Evo Morales, quickly became unsustainable after commodity prices collapsed. Just last year, the Bolivian Institute of Foreign Trade reported that the country had become a net importer of hydrocarbons, spending $2.9 billion on diesel imports, while earning only $2 billion from natural gas exports.