Bolivia has unearthed a colossal natural gas field containing 1.7 trillion cubic feet (TCF), marking the nation’s “most significant discovery since 2005,” President Luis Arce proclaimed on Monday.
Government Investment Yields Fruitful Results
“Thanks to our government’s investment of nearly $50 million, we have uncovered a massive reservoir” in the northern region of La Paz department, Mr. Arce declared during a public event.
The Bolivian president did not specify the extent to which the country’s reserves would increase, as the national oil company YPFB is preparing to engage a consulting firm to conduct studies on proven and probable reserves.
Historical Gas Reserves and Export Destinations
As of 2019, the latest available figures, Bolivia possessed 8.95 TCF of natural gas, the vast majority of which was earmarked for export to Brazil and Argentina.
In 2018, the country reached a peak of 10.45 TCF in proven reserves.
Shift in Export Revenue Sources
Gas exports served as Bolivia’s primary source of income until 2021, when they were surpassed by gold exports.
Mr. Arce acknowledged that his country has faced a decline in gas production due to a decade-long hiatus in exploration and replenishment of reserves.
Impact on Foreign Reserves and Fuel Imports
The downturn in gas activity has led Bolivia to deplete its foreign exchange reserves to support the importation of diesel and gasoline.