NEW question marks today hang over the future of a toxic ship blocked from leaving Southampton last year amid fears it could be illegally scrapped.

The Margaret Hill, a 50,700 tonne liquified natural gas tanker, was prevented from leaving the city’s docks last August.

environment Agency (EA) bosses feared the tanker was bound for India, where ships are routinely broken up in dangerous conditions.

After three months of talks the ship was eventually granted permission to depart, but only after its owners promised to put it back into use as a floating treatment plant.

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It has been anchored off Dubai for the past month but marine industry reports suggest the vessel has again been sold to a cash buyer for breaking in India.

This would represent a serious breach of the agreement struck between the EA and the Margaret Hill’s owners, New York-based Fortress Credit.

An EA spokesman last night said the organisation had been given assurances there were no plans to sell the ship.

“Following the rumours circulating in the press, representatives for Fortress have today contacted us and confirmed that they have no current intentions or plans to send the ship to India for breaking,”

the spokesman said.

“We have a clear view on what we think of unregulated shipbreaking yards as these facilities pose serious risks both to the environment and human health because they are not equipped to break up ships properly.”

Last night Fortress Credit refused to comment on the future of the ship.