Bolivia Banks on New Gas Field to Ease Economic Troubles

Bolivia has started producing natural gas from a new site called Churumas in the Tarija region. The state oil company, YPFB, expects this field to produce $800 million in revenue over the next twenty years.

They have already invested $100 million to drill three wells and connect the field to an existing processing plant with a 100-kilometer pipeline.

Churumas is now pumping out 20 million cubic feet of gas daily from its two active wells. As a third well comes online soon, daily output could grow to 35 million cubic feet.

Early tests show the field provides much-needed reserves at a time when Bolivia’s overall gas reserves have sharply dropped—from 10.7 trillion cubic feet in 2017 to only 4.5 trillion at the end of 2023.

Officials in YPFB and the Bolivian government say this project could not wait, as gas exports to Argentina and Brazil have long paid for public services and imports, but have been shrinking fast.

Bolivia’s finances have suffered from falling gas production and shrinking export deals. The government, pressed by lower revenues, has started a plan to boost oil and gas exploration across the country, with more than $700 million set aside this year alone.

Forty new projects are underway, but experts and officials alike say more time is needed for results. The Churumas field uses existing pipelines and processing plants, saving time and money on infrastructure.

Still, Bolivia faces tough choices as it tries to avoid fuel shortages, stabilize its currency, and balance its budget. Much depends on whether this field and future finds can help reverse the decline.

The stakes are high. If Bolivia can recover gas output, it will protect jobs, government funds, and its trade position in the region. If not, the country risks more economic pain.

For now, Churumas is a glimmer of hope, but the hard work of rebuilding Bolivia’s gas industry is only starting.