TBS
Highlights:
- VLGC Captain Nikolas resumed unloading after 11-month delay
- Owners lost over $15 million in fixed costs, dues
- Fire during LPG transfer left vessel stranded with cargo
- Ship arrested after admiralty suits from UAE companies
- Cargo accused of unsafe LPG imports from sanctioned countries
- Bangladesh’s rising LPG demand exposes oversight and legal vulnerabilities
The Very Large Gas Carrier (VLGC) Captain Nikolas has finally resumed unloading at Chattogram port after being stranded for nearly 11 months. The delay cost its Iranian owners over $15 million in fixed costs and port dues, plus several million more in compensation, wiping out almost two-thirds of the cargo’s value.
On 5 September, the vessel restarted gas transfer following court settlements, confirmed Chattogram Port Deputy Conservator Captain Faridul Alam.
The ship, owned by an Iranian company, has been stranded since 13 October last year, when it caught fire while offloading LPG into a lighter vessel near Kutubdia. It was later arrested in April following two admiralty suits. The vessel was carrying 34,000 tonnes of LPG worth around $23.8 million, according to the shipping agent.
Since then, the ship-owner faced heavy expenses. Shipping agent Seacom said fixed costs alone were $45,000 per day, totalling about $14.85 million. Monthly port dues of $10,771 and light dues of Tk1.34 lakh added over $130,000 in 11 months.
“The owner suffered huge financial strain as the vessel sat idle. Losses exceeded half the cargo’s value. On top of that, millions were paid in compensation to settle the admiralty suits,” said Seacom Director Zahurul Haque.
He added it would take three to four weeks to unload the entire cargo.
The October fire
The fire broke out in the early hours of 13 October 2024 during a ship-to-ship LPG transfer from Captain Nikolas to the lighter vessel BLPG Sophia at the outer anchorage. The blaze severely damaged Sophia, while Captain Nikolas escaped with minimal damage.
Bangladesh Navy and Coast Guard rushed to the scene. According to Coast Guard spokesperson Lt Commander Khondoker Munif Taki, flames on Captain Nikolas were extinguished by 3:30am, while the fire on Sophia was brought under control 12 hours later.
Most imports come from the Middle East, particularly the UAE, Qatar, and Saudi Arabia. Industry insiders warn that weak port monitoring allows questionable consignments to slip through, including shipments routed through third countries to hide their origin
Legal complications
After the fire, Captain Nikolas remained stranded with 34,000 tonnes of LPG worth about $23.8 million on board. In April this year, the Chattogram Port Authority arrested the vessel following two separate admiralty suits.
Dubai-based Atlantis Gas DMCC, owner of the damaged Sophia, secured an arrest order from the High Court on 9 April. The next day, UAE-based Xenon Energy DMCC filed another suit, prompting a second arrest.
Controversial cargo
Captain Nikolas was accused of importing unsafe LPG from sanctioned countries. The LPG Operators Association of Bangladesh said it was one of two vessels that misreported the country of origin while attempting to unload nearly 70,000 tonnes of LPG.
Unitex LP Gas Ltd, linked to the controversial conglomerate S Alam Group, was named as the main importer of the disputed cargo.
Bangladesh’s growing LPG market
Demand for LPG in Bangladesh has soared, with households, businesses, and vehicles increasingly relying on it due to declining natural gas supplies. The country imports more than 1.6 million tonnes annually, dominated by about 30 companies, including Bashundhara LP Gas, Jamuna, Omera, and Unitex.
Most imports come from the Middle East, particularly the UAE, Qatar, and Saudi Arabia. Industry insiders warn that weak port monitoring allows questionable consignments to slip through, including shipments routed through third countries to hide their origin.
In 2023, the Energy Division raised concerns about importers bypassing global restrictions by bringing LPG from sanctioned countries under false documentation. LPG Operators Association has urged the government to tighten oversight to prevent reputational risks and potential sanctions on Bangladesh.
What lies ahead
With claims settled and clearance obtained, Captain Nikolas has resumed ship-to-ship transfer. However, the incident highlights risks tied to Bangladesh’s growing dependence on foreign LPG, including environmental hazards and legal challenges from sanctioned cargo.
For the Iranian owners, the ordeal was financially devastating. The vessel sat idle for almost a year, incurring daily costs while its cargo remained untouched. Now back in operation, the losses underscore the risks in Bangladesh’s LPG trade and the opacity surrounding it.