CPA urged to take action against LPG import from sanctioned countries

LPG Operators Association of Bangladesh (LOAB) has urged the Chattogram Port Authority (CPA) and other authorities concerned to take action against the import of illegal liquefied petroleum gas (LPG) from countries under global sanctions.

According to official sources, LOAB sent a letter to the CPA on October 6 alleging that an LPG vessel named GAS GMS (IMO 9131539), supplied by Octane Energy Group FZCO, arrived at Chattogram Port on 3 October 2024. This vessel is suspected of carrying LPG sourced from Iran, a country currently under international sanctions.

Additionally, another vessel, Captain Nikolas (IMO 9008108), also suspected to be loaded with Iranian LPG, is presently en route to Chattogram, with an expected arrival on 6 October 2024.

"We have credible information indicating that, like previous cases, this vessel will falsely declare its cargo as being loaded from Iraq--a country that does not load such vessels. This deliberate misrepresentation further compounds the illegal nature of these shipments," it added.

The association formally requested that the CPA immediately take action to stop the discharge of LPG from the two vessels GAS GMS & Captain Nikolas, detain the vessels & crew of GAS GMS & Captain Nikolas and conduct a full and thorough investigation into both vessels, including verification of the actual country of origin of the LPG cargo on board.

It said it will not take responsibility for such unlawful activities that violate international sanctions and undermine the integrity of Bangladesh's LPG market.

"We are fully prepared to cooperate with all relevant authorities to ensure that these illegal shipments are intercepted and that the individuals responsible are held accountable," said the LOAB letter.

The association also mentioned that it had earlier sent two separate letters—one addressing the Adviser of the Ministry of Shipping on September 11 where it highlighted the illegal entry of LPG cargo from suppliers such as Octane Energy Group FZCO, ManasiGroup, and Merano Group.

The other letter was addressed to the Governor of Bangladesh Bank, dated September 11, emphasizing the need for stringent financial oversight to prevent LPG import from courtiers facing sanction.

Official sources said following the letter to the CPA, it formed a four-member investigation committee, headed by its CPA Assistant Harbor Master (PFS) Captain Md. Mostasim Billah while the other members will be representatives of the Mercantile Marine Office, representative of Customs and representative of Coast Guard.

A source said that the Coast Guard also detained the vessel for investigation. But before the completion of the investigation, the vessels were allowed to unload the products.

Meanwhile, industry insiders said that LOAB has been opposing the import of LPG in such an illegal way because it creates distortion in the market as the importers buy the product at a lower rate from the sanctioned country.

This cheaper and illegally imported LPG creates a big barrier in the competitive market and secondly,  this gas has no smell, it said adding if there is a gas leakage, the customer does not understand it, causing a risk of accidents.