Bolivia Uncovers Massive Natural Gas Reserves: Major Economic Implications

Bolivia's president, Luis Arce, announced the discovery of a vast natural gas field, the largest in nearly two decades. This could reverse the country's declining gas production and revive its economy. Named Mayaya X-1, the field contains 1.7 trillion cubic metres of gas worth $6.8 billion.

Bolivia's embattled president, Luis Arce, revealed on Monday the discovery of significant natural gas reserves, the most substantial in almost 20 years, which could help the cash-strapped nation boost its falling production.

Located just north of the capital, the gas field, named Mayaya X-1, is estimated to hold 1.7 trillion cubic metres of gas with a market value of $6.8 billion. President Arce described the discovery as a potential catalyst for reviving Bolivia's gas industry, once the cornerstone of its early 2000s economic boom.

Arce emphasized that this could signify a new beginning for the northern sub-Andean region, amid ongoing political turmoil and public dissatisfaction over fuel shortages and foreign currency deficits. Despite past reliance on commodity-driven economic models, current challenges include a drop in investment in exploration and a shift to net hydrocarbon imports.

(With inputs from agencies.)