Yesterday, the Shanghai Gas Group completed the trial of a liquefied natural gas (LNG) blockchain project for data sharing, reported Shanghai Daily. Shanghai Gas ran the first phase of the initiative in collaboration with blockchain firm VeChain, which provided the technology and other services.
In late 2018, Shanghai Gas, a unit of state-owned Shenergy Group, announced it was working with VeChain for an LNG management solution. At the time, the companies said the project would focus on providing quality assurance for different types of natural gas.
Now, the first phase of the project has been completed, and VeChain’s blockchain solution was used to upload and search data about an LNG storage tank. This includes the quality of gas, which is usually provided by a third party company, as well as order information and pickup quantity.
LNG storage tanks are generally temperature-controlled and insulated to protect the natural gas.
The solution enables the seamless sharing of data across other stakeholders in the value chain. This includes logistics firms, banks, and insurance companies, who could conduct business based on the immutable data stored on the blockchain. Thus, blockchain could enable better management of LNG storage and trade.
China is currently one of the largest importers of LNG in the world, partially due to its inclination to use cleaner fuel for power generation. Consumer demand is also on the rise, with 40% of gas consumption by urban and industrial areas.
Shanghai Gas will now move into the second phase of the blockchain project, which will explore logistics management, energy trade and financing options. The goal is to develop an ‘energy as a service’ business model.
Singapore-based VeChain offers enterprise blockchain solutions through its VeChainThor protocol, predominantly in mainland China. VeChainThor is a public blockchain.