Yesterday a new DLT gas joint venture Eleox announced the launch of its first solution – Ox Pair for trade confirmations. The joint venture members are bp, Castleton Commodities International (CCI), Koch Energy Services, Macquarie, Mercuria Energy America, and Shell Energy North America.
“We have a distinct advantage in that six leading companies in the industry are giving us constant testing and feedback to perfect products that will transform the post-trade process,” said Matthew Almy, Eleox’s CEO. “Without their invaluable input we would not have been able to launch our first DLT product within 12 months.”
The advantage must also be the DLT experience of several of the members. Four of them (apart from CCI or Macquarie) are participants in another DLT post trade venture, UK-based VAKT which targets the oil sector. VAKT is one of the most mature DLT joint ventures and has been a roaring success. Within months of going live in 2018, it was recording two thirds of North Sea crude trades.
By using Eleox’s Ox Pair, the commodities firms can identify inconsistencies between their energy trading risk management (“ETRM”) systems. Confirmed trades are then recorded on each of the organization’s nodes on the permissioned distributed ledger and are contractually binding. Ox Pair is the first of several gas post trade solutions for Eleox members.
“Shell’s go-live on Eleox’s platform is an important milestone in our pursuit of innovation and digitization in our trading business,” said Carolyn Comer, President, Shell Energy North America.
Eleox uses Digital Asset’s DAML and is a member of the Canton Network.
Eleox is not the only energy joint venture in the United States. Blockchain for Energy focuses on the extraction process for oil and gas. There’s currently no overlap between its 12 members and that of Eleox.