Argentina backpedals on gas rationing measures for industry

BUENOS AIRES - Argentina will loosen gas consumption restrictions announced this week, the Energy Ministry said, a day after ordering industrial producers to reduce gas usage to zero to ensure supply for households.

A government committee had approved the measure on Tuesday as natural gas supply was hit by delays in the unloading of two ships carrying LNG and by union conflicts at producers in the south of the country, which is entering winter.

On Wednesday the government energy committee backpedaled, saying in a statement that better weather and purchases of gas from Brazil and Uruguay, as well as advances in union negotiations, would allow industrial producers "minimum technical consumption."

Once gas acquisition and production are normalized, consumption could return to regular levels, the statement added.

The oil workers union that represents employees at private producers in the Tierra del Fuego region cut gas supply to the rest of the country on Wednesday in protest over raising utility charges.

A government plan to help battle the fiscal deficit by sharply increasing utility prices may be endangered after several judicial rulings that prevent providers from cutting off consumers who fail to pay their newly expensive bills.

(Reporting by Maximiliano Rizzi; writing by Julia Symmes Cobb; editing by Leslie Adler)

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