The main purpose of this study is to identify the determinants of nationalization in Latin America. The case for this study is natural gas industry in Bolivia. By analyzing the `Re-nationalization` of Bolivian natural gas industry in 2006, this study argues that both political and economic variables determine the nationalization process, particularly in energy sector. According to the evidences presented in the study, the power of pro-nationalization political forces is one of the determinants of nationalization. The study also confirms that ideology is important to determine the decision of nationalization. Furthermore, the Bolivian case shows that economic benefits of certain industry determine the timing and type of nationalization. Therefore, the Bolivian natural gas case confirms that both strong power of pro-nationalization political power and high economic benefits led to the `Re-nationalization` of natural gas industry in Bolivia.