UPDATE 1-Methanex says gas to Chilean plants still slowed

VANCOUVER, British Columbia, Sept 5 (Reuters) - Methanex Corp (MX.TO: Quote, Profile, Research) said on Wednesday that natural gas to its Chilean methanol plants from Argentina is still restricted, although technical problems faced by suppliers appear to have been resolved.

Only one of Methanex's four Chilean production facilities is operating and the company said it was talking with its suppliers about the situation. It was still supplying customers from inventory, from production from other plants and with purchased product.

Methanex has been hit by gas restrictions in recent South American winters as Argentina has redirected export shipments from its southern gas fields to domestic use in northern areas of the country.

Argentina has suffered a colder than normal winter this year, but the restrictions on exports have traditionally eased as the weather warms, the Canadian company said.

Methanex said it has been told there no technical issues to account for continued restrictions and that all of the transportation capacity to ship natural gas to northern areas is now being used.

Methanex is looking for increased natural gas production in southern Chile to supplant Argentine supplies.