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Bolivia's President Luis Arce has announced the country's discovery of natural gas reserves, the largest find in nearly two decades, and is expected to provide a much-needed boost to the country's struggling economy by reviving its once-thriving gas industry.

AP News that the new field, named Mayaya X-1, is located just north of the capital, La Paz, and is estimated to contain 1.7 trillion cubic meters of gas with a potential market value of $6.8 billion.

In recent years, Bolivia's state-owned energy company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), has seen a decline in investment for exploration projects, leading to a massive drop in natural gas production.

Last year, the Bolivian Institute of Foreign Trade warned that despite once ranking among the top 10 global natural gas producers, Bolivia now finds itself importing more hydrocarbons than it exports. This reversal saw the country earning just $2 billion from natural gas exports, while spending $2.9 billion on diesel imports

Bolivia's Natural Gas Sector

YPFB revealed that the new gas field was discovered thanks to a $50 million investment and spans several regions north of La Paz, with president Armin Dorgathen describing the find as a "new exploratory frontier" that could further boost Bolivia's energy sector and economic stability.

President Arce described the Mayaya X-1 field as a "mega field" and a huge opportunity to revive the gas sector, which had driven economic growth and poverty reduction in the early 2000s.

The announcement also comes at a rough time for Arce, who recently faced allegations of a military coup attempt and widespread public dissatisfaction due to fuel and foreign currency shortages.

Looking ahead, the discovery is expected to improbr Bolivia's existing gas reserves, which were last recorded at 8.7 trillion cubic meters in 2019 by International Trade Administration.