Bolivia is taking steps to boost its falling natural gas output. Franklin Molina, Energy Minister, highlighted 42 new exploration projects.
These projects started in 2021 and aim to find new gas reserves. Molina also said they are in talks with foreign companies like Petrobras to expand efforts.
“As the plan moves forward, we expect more results,” Molina said in a public statement.
He also noted that the government is offering incentives to attract private investment. The end goal is to improve overall operations in Bolivia’s energy sector.
The state-owned firm YPFB leads the exploration work.
Bolivia has long relied on natural gas as a critical revenue source. However, in recent years, the country has faced declining output levels.
These new projects signify a proactive strategy to reverse the trend. The country’s gas is mainly exported to neighbors like Brazil and Argentina.
Molina’s mention of Petrobras suggests a focus on sustaining this export market.
The energy sector is vital for Bolivia’s economy, accounting for a significant chunk of its GDP.
The current government’s active role shows its awareness of the sector’s importance.
Background
YPFB has been the cornerstone of Bolivia’s energy sector for decades. The company has primarily managed the production and sale of natural gas.
However, falling reserves necessitate new exploration ventures. This comes amid a global shift towards renewable energy resources.
Bolivia seems to balance this shift by encouraging private investment. By offering incentives, it aims to make gas exploration financially attractive.
The government’s multi-pronged approach could potentially stabilize the country’s energy future.
These efforts may also pave the way for diversification into other forms of energy.