IRAQ’S Khor al Zubair port has become a focal point for ships manipulating their Automatic Identification System signals to obfuscate loadings of LPG in Iran.

Lloyd’s List Intelligence analysis of AIS data and satellite imagery shows that small gas carriers are routinely “calling” in the port’s LPG export terminals to create a seemingly plausible voyage history that obfuscates the origin of their cargoes.

While some gas tankers opt for the basic form of AIS spoofing where they appear impossibly stationary, others are using more sophisticated forms that can be harder to identify. This includes creating apparent fake AIS trails that show the gas tankers “calling” in Khor al Zubair. One vessel was even observed to be manipulating its signal with enough sophistication as to avoid “colliding” with the genuine AIS pings of another ship.

In some instances, two or even three vessels can be seen signalling their AIS at one of the LPG export berths in Khor al Zubair, when in reality, only one is there. For example, AIS data from the morning of October 28, 2024, shows four LPG tankers in two of the port’s LPG berths, while a satellite image taken that morning shows only two.

Another incident from November 4 suggests perhaps an increasing level of sophistication.

AIS data shows the medium gas carrier Paul (IMO: 9975715) arrived at Khor Al Zubair in the early hours of November 3. Shortly after, small gas carrier Alba Gas (IMO: 9155626) can be seen arriving at the very same berth. However, Alba Gas pinged that location for a relatively short period of time before moving eastward, potentially suggesting that the AIS manipulation mechanism — or the person operating it — noticed that the fake signal was colliding with a genuine one, creating an improbable footprint.

Alba Gas’ AIS signal moved about 100 metres east of the berth later on November 3, and a further 200 m east on November 5. However, satellite imagery from the morning of November 3 shows only one vessel at Alba Gas’ purported coordinates — likely MGC Paul — while imagery from November 4 shows no vessel at the coordinates Alba Gas was pinging.

AIS manipulation in the Middle East Gulf is commonly used to obfuscate loadings of Iranian cargoes, although that is just one part of the sanctions evasion playbook. Operators also need to forge shipping documents to unload their illicit cargo.

Accordingly, a cargo manifest for the Palau-flagged small gas carrier Horizon 1 (IMO: 9130456) seen by Lloyd’s List, showed it loaded an LPG cargo in Khor al Zubair on September 24, 2024, matching its AIS signal trail in and around those dates. However, its AIS data also suggests the system was manipulated, while satellite imagery casts further doubt over its reported positions in Iraq. Horizon 1 discharged its cargo in Mongla, Bangladesh, in mid-October.

Similarly, the cargo manifest for medium gas carrier G Ymm (IMO: 9139696) also purported to show the vessel loaded in Khor al Zubair on September 21 before departing for Bangladesh. However, AIS data shows the vessel anchored near the Basrah Offshore Oil Terminal between September 24-28, with the pattern highly indicative of AIS manipulation.

The overwhelming majority of Iranian LPG makes its way to China, shipped on very large gas carriers. The smaller gas tankers typically ship cargoes to Bangladesh and Pakistan.

It is not uncommon however for VLGCs to sail to Bangladesh and lighter their cargoes to smaller vessels.

After discharging its cargo in Mongla in October, Horizon 1 sailed to Chittagong, where it has since lightered two cargoes from the VLGC Gaz GMS (IMO: 9131539). The Panama-flagged gas tanker is currently laden with LPG originally loaded by a prolific Iranian loader, VLGC Tower Rise (IMO: 8912546), who transferred it to an intermediary vessel Gas Orient (IMO: 8910897), according to data from Lloyd’s List Intelligence and commodities and analytics provider Vortexa. Gas Orient was recently banned from United Arab Emirates’ waters.

Another recent LPG lightering operation saw two vessels, the VLGC Captain Nikolas (IMO: 9008108) and SGC B- LPG Sophia (IMO: 9175846) catch fire while conducting a ship-to-ship transfer of suspected Iranian cargo off Kutubdia Island, Bangladesh.

Captain Nikolas is one of at least 15 LPG tankers that were found to be linked through a complicated network of Panama-based shell companies by a Lloyd’s List investigation in November 2023. The vessels were also linked with an alarmingly high number of seafarer abandonment reports.

Norwegian insurer Ro Marine issued the Blue Card for Tanzania-flagged Captain Nikolas, but told Lloyd’s List in October that vessel was not covered as the owners “failed to settle the premium”. Zanzibar Maritime Authority, which administers the Tanzanian flag, did not respond to emails asking whether the ship had a Blue Card from another insurer.

The fire incident came amid a surge in Iranian LPG imports into Bangladesh that has rattled traders and local importers, who say they are being undercut by the steep discounts offered by their less compliant competitors.

Depending on the quantity purchased and port of discharge, Iranian LPG was being sold at discounts ranging from about 20%-35% per tonne to Iraqi cargoes, a market source told Lloyd’s List.

Following the double ship blaze in October and amid pressure from local LPG distributors, the Bangladeshi Ministry of Shipping issued a circular warning industry to avoid sanctioned cargoes and warning of penalties for violators. However, it appears that, at least so far, the government’s resolve to tackle the issue has been lacklustre.

The operators of Horizon 1, G YMM, and Alba Gas were approached for comment.

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