Bolivia unveils plan to double natgas reserves

By Eduardo Garcia

LA PAZ (Reuters) - Bolivia has revealed ambitious plans to double its natural gas reserves in the next four years, but industry analysts are skeptical about whether the needed foreign investment will materialize.

The plan, outlined by state energy firm YPFB on Wednesday, envisions investments of between $1 billion and $1.5 billion per year, from companies including Venezuela's state-owned PDVSA and Russia's Gazprom (GAZP.MM).

"The 'Plan 100' means we will extract more than 50 trillion cubic feet ... reaching 100 trillion cubic feet (in total)," YPFB President Santos Ramirez said in a statement.

Bolivia has South America's second-largest natural gas reserves after Venezuela, but energy investments fell after leftist President Evo Morales nationalized the industry in 2006, hiking taxes on foreign companies.

The government has announced a series of investment pledges by foreign firms, but analysts say they have invested little to boost output so far.

"For two-and-a-half years we've been hearing that investments are on the way, but they never get here ... I think this is just another announcement," former deputy energy minister Gonzalo Chavez told Reuters.

Bolivia has struggled this year to meet export commitments to Brazil and Argentina due to difficulties in increasing production, casting doubt on its ability to meet contracts stipulating bigger supplies.

However, Energy Minister Carlos Villegas said investments at two well-established fields would bolster output as early as next year.