Energy News

VeChain inks blockchain deal for Chinese Gas Solution

liquefied natural gas LNG

Today Chinese enterprise blockchain company VeChain announced a deal for a liquified natural gas (LNG) management solution that will leverage the VeChainThor Blockchain. The partners are ENN Energy and state-owned Shanghai Gas.

The project aims to provide a quality assurance process for the different types of natural gas. For example, LNG energy potential is measured as gross calorific value (GCV) and measurements need to be taken for contaminants such as Hydrogen Sulphide and Carbon Dioxide.

Data is certified by a third party and uploaded to the blockchain. Once on the blockchain, the information will be tracked, shared and traded. The trading exchange is which is affiliated to ENN Energy.

In the pilot, ENN Energy will be responsible for the physical and business aspects of the project, and VeChain is providing blockchain technology and associated software services. Shanghai Gas’ role is to provide policy guidance and ensure the solution adheres to government mandates. Once the project is live, Shanghai Gas will help with national expansion.

About VeChain

On its website VeChain claims to be “the world’s leading blockchain platform offering Blockchain-as-a-Service to enterprises”. It started in China but set up a foundation in Singapore which managed its ICO. The token’s current market capitalization is more than $500m and ranks just behind ZCash at number 20 on the coinmarketcap list.

But despite China’s ban on cryptocurrencies, the company operates in China and even has deals with government entities such as the People’s Insurance Company of China (PICC).

In May DNV, the risk management and quality assurance company bought a stake in VeChain. The Norwegian company is active in maritime and energy sectors and helped introduce VeChain to PICC.

DNV is also involved in the VeChain carbon credit system announced two months ago but formally launched two weeks ago. Other participants are auto company BYD and PICC.

VeChain’s blockchain technology is a customized version of Ethereum using Proof of Authority. With more than 100 nodes around the world, the governance is centralized.