Bolivia faces energy crisis as gas production declines

Bolivia is facing a deepening energy crisis due to dwindling natural gas reserves and a significant decline in production. After nearly two decades of supplying gas to Argentina, the historical flow of energy in South America may soon reverse. Reports from Alpes Energy suggest that Bolivia could begin importing gas from Argentina as early as 2031.

Bolivian gas production has seen a sustained decline, dropping from a peak of 59.6 million cubic meters per day in 2014 to a projected average of 26.6 million cubic meters per day by 2026. This represents a cumulative decline of approximately 53%. Projections indicate that by 2031, production could fall to 15.3 million cubic meters per day, potentially dropping below domestic demand by 2032.

In contrast, Argentina’s Neuquén Basin has seen a 56% increase in production between 2016 and mid-2026, driven largely by the expansion of non-conventional gas. This growth positions Argentina as a logical supplier for Bolivia. Meanwhile, Bolivia’s economic stability has been undermined by fuel shortages and rising living costs, leading to a $1.9 billion IMF rescue package and ongoing energy-sector reforms to address years of underinvestment and declining exports.