Bolivia’s natural gas reserves depleted due to lack of exploration

Bolivia is facing depletion of its natural gas reserves, the country's main source of revenue, due to a lack of investment in exploration for new reserves. The Chairman of state-owned oil company YPFB announces a $669 million investment to boost production.

Share:

Bolivia has run out of natural gas reserves, its main source of income, due to a lack of investment in exploring new reserves, the president of state oil company YPFB said on Wednesday.

Bolivia’s natural gas in decline: $669 million investment to boost production

Since 2014, the country has seen a drop in production, Armin Dorgathen told reporters in the eastern city of Santa Cruz.

“There haven’t been enough exploration projects,” he lamented, announcing that some $669 million would be invested in exploration this year.

According to Dorgathen, Bolivia’s natural gas reserves amount to 8.95 trillion cubic meters. Production has fallen from 59 million cubic meters per day in 2014 to 37 today. Natural gas is a fossil fuel that emits CO2 when burned, but less than oil and coal. On Tuesday, President Luis Arce also warned that production would decline until it “hit rock bottom”.

“Gas reserves have not been replenished, so the country does not have the capacity to produce more,” he lamented.

In addition to supplying the domestic market, Bolivia also sells gas to Argentina and Brazil. According to the Independent Bolivian Institute of Foreign Trade, natural gas sales brought in some $2.97 billion in 2022, more than the country’s mining and agricultural sectors.

Under the presidency of Evo Morales (2006-2019), Bolivia nationalized its natural gas reserves, which had previously been in the hands of Spanish, British, Brazilian and Argentine companies. At the time, he assured us that Bolivia was in a position to supply the entire region, as it was sitting on “a sea” of gas.

Italian group Eni signs a twenty-year liquefied natural gas supply contract with US-based Venture Global, covering two mn tonnes per year and marking a first for the company from the United States.
The discovery of the Gajajeira field marks a major step for Angola, strengthening its natural gas development strategy and diversifying national energy resources in a context of sector transition.
The Voskhod vessel, under US sanctions, docked at the Arctic LNG 2 plant in Russia, marking the second visit by a sanctioned ship to the site this year, according to maritime tracking data.
Japan has urgently secured several additional cargoes of liquefied natural gas from the United States to avert an imminent electricity supply shortage caused by rapidly declining national reserves expected at the end of July.
The European Commission has unveiled a proposal to prohibit the import of Russian gas into the Union, sparking intense debate on its feasibility, contractual impact and consequences for supply security among several Member States.
CNOOC Limited announces the discovery of a significant oil and gas reservoir in the buried hills of the Beibu Gulf, opening new opportunities for shallow water exploration off the coast of China.
TotalEnergies’ Mozambique LNG gas project is at the centre of a legal challenge in Washington, following the approval of a $4.7 bn loan by the US Exim Bank, amid security concerns and opposition from civil society groups.
Investors are closely watching U.S. midstream companies’ announcements regarding new gas pipeline expansions targeting promising markets in the West and Northeast, beyond traditional regions in Texas and the Southeast.
PPL Corporation and Blackstone Infrastructure announce a strategic partnership to develop new gas-fired power plants to supply electricity to data centers through long-term contracts in Pennsylvania.
Falcon Oil & Gas Ltd announces a new record initial flow test result at the Shenandoah S2-2H ST1 well and the start of its 2025 drilling campaign in the Beetaloo Basin.
The Azule Energy consortium has identified a significant gas and condensate field during Angola’s first exploration drilling dedicated to gas, marking a milestone for the country's energy sector.
Technip Energies has secured a contract to lead preparatory works for a floating liquefied natural gas unit in Africa, confirming its presence in the international gas infrastructure market.
The Slovak government is seeking guarantees from the European Union to secure its supplies as talks continue over ending Russian gas and adopting a new round of sanctions.
ArcLight Capital Partners announces the acquisition of Middletown Energy Center, a combined-cycle natural gas power plant, aimed at meeting the substantial rise in energy demand from data centers and digital infrastructure in Ohio.
The commissioning of LNG Canada, the first major Canadian liquefied natural gas export facility led by Shell, has not yet triggered the anticipated rise in natural gas prices in western Canada, still facing persistent oversupply.
Horizon Petroleum Ltd. is advancing towards the production launch of the Lachowice 7 gas well in Poland, having secured necessary permits and completed preliminary works to commence operations as early as next August.
European Union member states have requested to keep their national strategies for phasing out Russian gas by 2027 confidential, citing security concerns and market disruption risks, according to a document revealed by Reuters.
TotalEnergies becomes a member of PJM Interconnection, expanding its trading capabilities in North America's largest wholesale electricity market. The decision strengthens the company's presence in the United States.
Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.