The Bolivian Government has announced the discovery of a significant natural gas reserve, reported Reuters, citing the country’s President Luis Arce. 

Located north of the country’s administrative capital, La Paz, the discovery is estimated to hold 1.7tcf of natural gas.  

The discovery comes as the landlocked South American nation is experiencing an energy shortage due to years of decreasing oil and gas production. The decrease in production has also adversely affected its currency reserves. 

In a speech at the government palace, Arce said: "A 1.7tcf reserve is confirmed, being the most important discovery for Bolivia since 2005. 

"It will likely make for the third-best producing field in the whole country," the president said.  

The field is named the Mayaya Centro-X1 IE and is set to be included in Bolivian state-owned oil and gas company YPFB's Upstream Reactivation Plan. 

The Mayaya Centro-X1 field will increase Bolivia's current natural gas reserves, which were reported at 8.95tcf as of December 2018, according to the latest available official data. 

According to data from YPFB, Bolivia's natural gas production declined from 56.6 million cubic metres per day (mcm/d) in 2016 to 31.9mcm/d in 2023. 

Earlier this month, YPFB stated that it is exploring solutions to address recent fuel shortages. 

YPFB president Armin Dorgathen noted that payment challenges, legislative issues and regulations under predominantly socialist leadership have created a difficult environment for private companies.  

YPFB is now striving to revise these conditions to foster increased investments from current partners in Bolivia, such as Repsol, TotalEnergies and Petrobras.  

Additionally, the government is seeking assistance from Russia, a member of the OPEC+ coalition, to address fuel supply challenges.  

These efforts follow a recent unsuccessful military coup attempt against Bolivia’s Government.