Pakistan is considering buying liquefied natural gas (LNG) on the spot market to offset supply disruptions caused by the Iran war, but would favour government-to-government deals to avoid having to pay steep premiums, Petroleum Minister Ali Pervaiz Malik has told Reuters.

Qatar’s force majeure forced Pakistan to make costly spot purchases or find alternative fuels ahead of summer demand.

Spot LNG cargoes have surged to $20 to $30 per mmBtu amid the Middle East conflict, Malik says, adding that purchases would depend on whether prices are acceptable to the power sector, including under existing government-to-government arrangements with Azerbaijan’s Socar.

Pakistan has also been routing some crude supplies via Saudi Arabia’s Red Sea port of Yanbu to bypass the Strait of Hormuz, with Malik saying insurance costs on that route were lower than routes crossing or near Hormuz.

Pakistan imports nearly all of its oil, much of it via the Strait of Hormuz, and remains exposed to supply shocks despite cutting its LNG reliance in recent years, as gas is still needed to meet the country’s peak summer power demand.

It has begun commercial output from its highest-ever producing oil and gas well, as it shores up domestic supply.

“We have arrangements in place to meet domestic and industrial requirements,” Malik said, adding that gas disruptions have not led to major curbs, with eight of 10 fertiliser plants operating.

Officials are also considering the use of costlier fuels such as furnace oil to limit load shedding, although at the expense of higher tariffs. Malik warned that prolonged shortages could threaten food security.

The Baragzai X-01 well in Khyber Pakhtunkhwa is producing about 15,000 barrels of oil per day and 45 million cubic feet of gas, with output expected to rise further, the state-run operator Oil and Gas Development Company Ltd (OGDC) said.

The well could reach up to 25,000 barrels per day and 60 million cubic feet per day of gas, making it Pakistan’s highest-producing well, and may contribute around 10 per cent of crude output while cutting the country’s import bill by about $329 million annually, OGDC said.

India has strongly pushed back against the United States’ Section 301 investigations, rejecting allegations of unfair trade practices and seeking immediate termination of the probes.In its submission to the US Trade Representative (USTR), India “firmly denies all allegations made in the initiation notice” related to claims of excess structural capacity and production in manufacturing sectors, PTI reported. “The initiation Notice is premised on aggregate macroeconomic indicators, without identifying any specific act, policy or practice of the Government of India that could be considered ‘unreasonable or discriminatory’ and that ‘burdens or restricts United States commerce’ as required by Section 301(b) of the Act,” the submission said. India said the notice provides no “cogent rationale” or prima facie evidence to support allegations that the country has structural excess capacity leading to a trade surplus with the US. “India submits that the present investigation does not satisfy the requirements for the initiation of this investigation pursuant to Sections 301 and 302 of the Trade Act of 1974. India calls upon the USTR to make a negative determination and terminate the investigation forthwith,” it said. The government also urged that trade concerns be addressed through ongoing bilateral negotiations rather than unilateral measures, noting that both countries are engaged in discussions for a Bilateral Trade Agreement. “India remains willing to constructively engage with the United States in the underlying investigation, including any consultation,” it added. Separately, responding to another Section 301 probe launched on March 12 on alleged failure to act against forced labour, India said the investigation does not meet legal requirements for initiation. “India requests the USTR to make a negative determination and terminate the investigation against India. Additionally, India remains willing to constructively engage with the United States in the underlying investigation, including any consultation,” the submission said. The responses have been filed by the commerce and industry ministry on behalf of the government. On March 11, the USTR initiated investigations into policies and industrial practices of 16 economies, including India, China, Japan and the European Union, to examine “unfair foreign practices” affecting American manufacturing. A day later, on March 12, the USTR launched a broader probe covering 60 economies, including India and China, to assess whether their practices related to forced labour imports are unreasonable or discriminatory and restrict US commerce. India said its submissions represent the public, non-confidential summary of its response, while the full version has been filed separately as confidential.