May 29, 2008 / 3:34 PM / 11 years ago

Argentina restricts gas supplies to industry

BUENOS AIRES, May 29 (Reuters) - Argentina has ordered leading energy distributors to restrict natural gas supplies to industrial users and gas stations to ensure homes have enough gas-fueled heating during a cold spell, industry sources said on Thursday.

A day earlier, Argentina temporarily halted natural gas exports to neighboring Chile as near-freezing temperatures hit Buenos Aires during the southern hemisphere autumn.

Argentina has suffered an energy crunch since the economy rebounded from a crisis in 2003, with demand soaring while price controls dampen investment.

“Industrial users are being restricted throughout the day and being notified of how much they can consume each day,” an official at one distributor who asked not to be named said.

Energy distributors in and around the capital, Buenos Aires, were ordered to scale back supplies, the official said.

Argentina’s National Meteorological Service forecasts chilly weather through Sunday in Buenos Aires and its metropolitan area, home to nearly one-third of the population.

An official at the Planning Ministry, in comments to local media, blamed the restrictions on an oil workers strike in the southern Santa Cruz province.

“If it wasn’t for the conflict between oil companies and workers (in Santa Cruz), there wouldn’t have been any problem with gas supplies,” said the official, who wasn’t named.

Last year, energy shortages forced Argentina to ration power supplies to factories.

Analysts say the energy problems largely stem from a decision to freeze utility rates during Argentina’s economic crisis to avoid inflationary pressures.

Argentine consumes some 128 million cubic meters of gas a day.

The Argentine economy has grown by 8 percent in each of the five years, but investment in energy infrastructure has lagged and the country has had to import fuel oil from Venezuela and natural gas from Bolivia to help boost supplies.

Reporting by Cesar Illiano; Writing by Kevin Gray; Editing by David Gregorio

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