In a significant development, Bolivia's president revealed the discovery of extensive natural gas reserves near the capital city, La Paz. President Luis Arce hailed the find as the largest in nearly two decades, offering a potential lifeline to the country's struggling economy. The newly identified gas field, named Mayaya X-1, is estimated to hold around 1.7 trillion cubic meters of gas with a market value of approximately $6.8 billion.
Arce emphasized the importance of this discovery in revitalizing Bolivia's gas industry, which had been a key driver of economic growth in the early 2000s. The president expressed optimism about the potential of the 'mega field' to bolster Bolivia's position as a significant gas exporter.
Over the years, Bolivia's gas production had declined due to waning investment in exploration projects by the state-owned energy company. The country's previous economic model, characterized by heavy subsidies on fuel, became unsustainable as global commodity prices dropped.
Recent reports indicated that Bolivia, once a major natural gas producer, had transitioned into a net importer of hydrocarbons, leading to financial challenges. President Arce acknowledged the critical state of gas production, describing it as having reached a low point.
The discovery of the Mayaya X-1 field, made possible through a $50 million investment, is seen as a significant step towards reversing Bolivia's gas production decline. The field spans multiple regions north of La Paz and is expected to supplement Bolivia's existing gas reserves, which were reported at 8.7 trillion cubic meters in 2019.
YPFB, Bolivia's state-controlled energy company, highlighted the exploratory potential of the new gas field, emphasizing its role in opening up a new frontier for gas exploration in the region. The announcement has sparked hope for a resurgence in Bolivia's gas industry and a return to its status as a prominent gas exporter.
