La Paz: Bolivian President Luis Arce has announced the discovery of a vast natural gas reserve in the country’s administrative capital, La Paz.
Luis Arce described the discovery as the largest find in nearly two decades and would considerably help the financially struggling nation.
A ‘Mega Field,’ estimated to contain approximately 1.7 trillion cubic meters of gas with a market value of $6.8 billion has been discovered from the trove, located just north of the capital. The field, named Mayaya X-1, is seen as a potential revival for Bolivia’s gas industry, which was the driving force behind the country’s economic boom in the early 2000s.
“This marks the beginning of a new chapter for the northern sub-Andean region, offering hope of maintaining our country as an important gas exporter,” said Arce, who has recently faced allegations of being the target of a military coup attempt and widespread public discontent over fuel and currency shortages. “It’s the most important discovery since 2005,” the President added.
In recent years, investment in exploration projects by Bolivia’s state-owned energy company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), has dwindled, leading to a rapid decline in natural gas extraction. Bolivian politicians previously spent much of the gas windfall on heavily subsidised fuel, a model pioneered by former President Evo Morales. This model became unsustainable when commodity prices fell.
Last year, the Bolivian Institute of Foreign Trade reported that Bolivia was once the world’s top 10 natural gas producer, but now 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.
The new natural gas field spans several regions north of La Paz and will add to Bolivia’s existing gas reserves, which were last reported at 8.7 trillion cubic metres in 2019.
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