Reuters Summit-Rains to determine any Chile power rationing

(For other news from the Reuters Latina America Investment Summit, click here)

SANTIAGO, March 31 (Reuters) - Chile has avoided energy rationing so far, but winter rains will dictate whether or not the government will have to resort to it, Energy Minister Marcelo Tokman said on Monday.

Chile will likely overcome an energy squeeze in 2010-2011 thanks to the implementation of various energy projects under construction, Tokman told a Reuters Latin America Investment Summit in the Chilean capital Santiago.

"If it does not rain this winter, we will be in a very tight situation," Tokman said, referring to low water levels in hydro-electric reservoir amid a severe drought. Chile is also suffering from lower gas imports from neighbouring Argentina.

"If the drought continues ... diesel consumption will be higher than last year," he added, without giving further details. (Reporting by Monica Vargas, Writing by Simon Gardner, editing by Leslie Gevirtz)