LA PAZ, July 16, 2024 (BSS/AFP) - Bolivia has discovered a massive natural gas field with reserves of 1.7 trillion cubic feet, its biggest discovery of the fuel since 2005, President Luis Arce said Monday.

The South American nation, which was hit by an attempted coup last month, is battling a severe economic crisis due to a shortage of US dollars prompted by a dramatic drop in exports of natural gas -- once a mainstay of the economy.

The discovery amounts to enough gas to power Mexico or Italy for a year, according to 2020 consumption figures from the US Energy Information Administration.

Arce said during a public appearance that "we have discovered a mega-field" north of the capital La Paz, after a $50 million investment in exploration.

The reserve "is the most important discovery for Bolivia since 2005."

The president did not specify how much this will boost the country's overall reserves, since the state oil company YPFB is hiring a consulting firm to assess Bolivia's proven and probable reserves.

Gas exports were Bolivia's main source of income until 2021, when this was replaced by gold exports.

Arce has acknowledged that the country's drop in gas production resulted from a failure to explore and replenish Bolivia's reserves over the past decade.

According to data from YPFB, Bolivia currently produces 35 million cubic meters per day of gas, which is exported to Brazil and Argentina and used on the domestic market.

The shortage of dollars in Bolivia has led to severe fuel shortages, which has increased the cost of living and led to mass protests.