LPG importers demand probe into 2 vessels

Two vessels anchored in Chattogram port last week to unload about 70,000 tonnes of liquefied petroleum gas by misreporting the country of origin of the product, said the LPG Operators Association of Bangladesh (LOAB).
The product might be from Iran, a heavily-sanctioned country by the West and international entities, LOAB said.
Subsequently, the industry body requested the Chattogram Port Authority (CPA) and the customs to conduct a thorough investigation of the two vessels.
On October 3, Gaz GMS anchored at the Bay of Bengal and three days later, MT Captain Nikolas. Gaz GMS arrived from the UAE’s Sharjah and Captain Nikolas from Oman’s Sohar, according to data provided to the port authorities.
LOAB demanded the port authorities detain the two vessels and their crews, ask for the Certificate of Origin and independently verify the information.
Disclosing the country of origin (COO) of the products is mandatory to get customs clearance and some companies tend to bypass the rule by loading the cargo from another ship, commonly referred to as ship-to-ship transfer (STS), and reporting the location of transfer as the source of the products, according to LPG importers.
This misleads the customs and the port authorities.
Data from Kpler, a globally used ship tracker, shows Gaz GMS was loaded ship-to-ship from Sharjah on September 8 and Captain Nikolas from Iran on September 16.
In the letter, LOAB said they will not take responsibility for such “unlawful” activities that violate international sanctions and undermine the integrity of Bangladesh’s LPG market.
The organisation also sought intervention from the ministry of power, energy and mineral resources to stop the “malpractice”.
Subsequently, the CPA on Wednesday formed an investigation committee comprising members of Bangladesh Customs, Coast Guard and Mercantile Marine Office, said Md Mostasim Billah, assistant harbour master of the CPA, one of the four members of the probe body.
Talking to The Daily Star, Energy Adviser Fouzul Kabir Khan said he instructed the energy division to investigate the issue.
Seeking anonymity, an LPG importer said the unscrupulous suppliers have been generating illicit profits as the prices of products sourced from sanctioned countries are much lower than the rate Bangladesh follows.
“Many countries have been importing Iran’s LPG or other fuels officially. But as a signatory of some international rules, we cannot buy products from sanctioned countries. If the government allows it then it should be open for all,” said another top LPG operator on the condition of anonymity.
Such illegal import of LPG has been going on for the last couple of months, they said.
If the authorities take the initiative to check the Certificate of Origin directly, it will be easier to get the real picture, said another LPG importer.
According to the National Board of Revenue, Gaz GMS contains a total of 33,000 tonnes of LPG ingredients under nine packages while MT Captain Nikolas contains 42,925 tonnes under 13 packages. The supplying companies are Octane Energy Group FZCO and Atlantis Gas DMCC respectively.
Of the nine Gaz GMS packages, five belong to Meghna Fresh LPG, three to JMI Industrial Gas and one to BM Energy (BD).
Of the 13 packages that were brought by Captain Nikolas packages, six belong to Jamuna Spacetech Joint Venture, three to Unitex LP Gas, two to TMSS and one each to BM Energy and Energypac Power Generation.
The Daily Star contacted the officials of the eight companies and most of them wished not to make any comment.
“We usually import LPG from another supplier. But this time we chose the company [Atlantis]. We checked their previous records. But we don’t have the ability to check the origin of the product because normally suppliers handle those issues,” said a top official of Unitex LP Gas.
LOAB President Azam J Chowdhury said the organisation has a resolution as an operating practice that no one should buy LPG from sanctioned countries. “We all have signed it but some of us import such items by hiding information,” he said.
“Just like Bangladesh can’t import products from Russia, it can’t do so from Iran,” said Mohammad Tamim, professor of petroleum and mineral resources engineering department of BUET.
Iran was the most sanctioned country in the world until it was surpassed by Russia, following Russia’s invasion of neighbouring Ukraine in February 2023.
“If the private entities import such products at their own risks, and if they don’t use the proper banking channel, both of them might face trouble individually,” he said.