There is no imminent risk of a halt to production at gas wells in Argentina's Neuquen basin, which provides neighboring Chile with the fuel, the latter country's energy and mines ministry said in a statement, citing Argentine producers.

The area has faced union conflicts lately and it was rumored that production activities could be halted.

Representatives of union groups are not expected to adopt forceful methods, at least for the time being, Argentina's energy secretary Daniel Cameron was reported as telling Rodrigo Iglesias, executive secretary of Chile's energy regulator CNE.

The relationship between Argentina and Chile has been strained by gas export restrictions that started in 2004, causing Chile to seek other gas sources to satisfy its growing power demands.

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