Small Iranian tankers, part of what investigators call a "ghost fleet," are evading a U.S. naval blockade and smuggling sanctioned liquefied petroleum gas (LPG) to China, according to a months-long probe by United Against Nuclear Iran (UANI). UANI investigators documented one such tanker, the SOGL, en route to China in September.
UANI stated that at least nine similar tankers carrying Iranian oil or LPG have bypassed U.S. restrictions in the Strait of Hormuz since Washington reinstated the blockade in July. The tanker SOGL allegedly departed an Iranian port in August, carrying approximately 500,000 barrels of LPG, and evaded the blockade on September 1. It then traveled to a Malaysian offshore anchorage, where UANI filmed it receiving fuel and services before continuing to China to discharge its cargo.
"This tanker had loaded its Iranian LPG from Assaluyeh Port, Iran, in late August. It then breached the U.S. blockade and made its way to a Malaysian anchorage," said Jemima Shelley, a senior analyst at UANI. "What this shows us is that some vessels are managing to breach the U.S. maritime blockade."
The U.S. maritime blockade, first imposed in April, was reinstated on July 14 and has significantly curtailed Iran's crude oil exports, a key source of revenue for the country. Shelley noted that while most vessels are intercepted, nine small tankers have successfully evaded the blockade since mid-July.
Malaysian Anchorage as a Staging Ground
The Eastern Outer Port Limits Anchorage (EOPL) off the coast of Malaysia has emerged as a crucial staging ground for Iran's sanctioned energy trade with China. This offshore area allows vessels to receive supplies and transfer cargo, providing a logistical pathway for Iranian exports while U.S. naval forces patrol closer to Iran's coast.
UANI documented these activities firsthand on September 16, chartering a supply vessel to observe the EOPL anchorage. "Here we witnessed firsthand the illicit activities of ghost fleet tankers, as well as some Iran-flagged cargo ships that were located in this anchorage, one of them being the SOGL," Shelley stated.
LPG is a flammable mixture of hydrocarbons like propane and butane, used for heating, cooking, and industrial purposes. Shelley highlighted the risks associated with transporting LPG, noting that while the U.S. blockade primarily aims to turn vessels around, the volatile nature of LPG could necessitate more forceful intervention.
To evade detection, these smaller tankers often turn off their Automatic Identification System (AIS) transponders and fly false flags, making them difficult to track. Shelley described how some tankers conduct risky ship-to-ship transfers of LPG in the Gulf of Oman before the receiving vessel attempts to breach the blockade.
Sanctions and Destinations
The tanker SOGL, identified by IMO number 9208227, was added to the U.S. Treasury Department's Office of Foreign Assets Control sanctions list on October 8 for its alleged involvement in transporting Iranian petroleum products. The vessel has operated under multiple flags and has been linked to front companies.
China is the primary destination for Iran's oil and LPG exports, with Shelley estimating that China imports nearly 100% of Iran's oil and LPG exports. This trade provides Iran with economic relief from U.S. and OPEC sanctions, while China benefits from discounted prices.
Following UANI's observation, the SOGL did not conduct a ship-to-ship transfer but instead proceeded to China, discharging its LPG cargo at Xinzhou Port. Another U.S.-sanctioned LPG carrier, the G Summer, was also tracked transmitting signals from the Arabian Sea in April, indicating an all-Chinese crew aboard and Iran as its last cargo country.