Chile readies for spotty gas supply from Argentina

SANTIAGO, June 3 (Reuters) - Chile expects to see spotty supplies of natural gas from Argentina as the Southern Hemisphere winter enters full swing, with potential cuts in supplies to homes and businesses, analysts said on Tuesday.

Last week Argentina, Chile's sole supplier of the fuel used to generate electricity and for heating and cooking, cut exports to central Chile completely on two occasions, on Wednesday and Sunday.

On Monday Argentina injected only 150,000 cubic meters of gas into the central Chile grid, compared with 1.2 million cubic meters per day average for May last year. On Tuesday, it let the taps run dry, according to the National Energy Commission.

"It's very probable that this scenario we have seen this week will continue going forward," said Diego Celedon, an analyst with Santander Investment.

"It's going to be tough for supply to improve because we still have the coldest months (of the winter) ahead of us, when demand is highest in Buenos Aires and Chile," said Rodrigo Andaur of FIT Research.

The Southern Hemisphere winter runs approximately from June through August.

Argentina has guaranteed supply of natural gas for domestic and business needs in central Chile, home to the nation's capital and most of the population.

But analysts say those commitments may be tried by cold winters in both countries, with energy-poor Chile coming out the loser.

"In theory, we have residential supplies guaranteed," said Celedon. "But the way things are, if we face similar situations as last week but where Argentina can't export gas for a longer period, we'll see cuts."

Argentina has limited natural gas supplies to Chile since 2004, but those cuts sharpened in 2007 as its own domestic demand rose and supplies remained flat.

Chile's government is in a campaign to encourage businesses and homes to cut energy consumption even as winter months drive fuel and energy demand. (Reporting by Monica Vargas, editing by Pav Jordan and Marguerita Choy)