Shanghai Gas (Group) Co. starts bearing a hand with further with VeChain to develop a blockchain-enabled energy project. Wane in transaction sophistication and cost brought by the blockchain technology has caught sight of Shanghai Gas as the overseeing body of the pilot LNG management solution in the Zhoushan LNG Storage and Distribution centre associated by VeChain and ENN Energy Holdings Limited. Shanghai Gas wanted to make the best use of the opportunity indeed.
One of the leading forces in terms of global demand of natural gas is in China positioning the Chinese Domestic LNG market at the front line of the entire industry. Natural gas with some of its amazing natures is playing a vital role in the energy market. The National Development and Reform Commission (NDRC) of China have revealed its plan on energy development with an eye to promoting the natural gas market reform and facilitating the building of a trusted energy national network. But there are a number of problems standing in line including fair access for third parties involvement, the separation of energy infrastructure from sales channels, problems with transaction processes, security issues, and imbalance between supply and demand yet to be solved in the industry.
Shanghai Gas, which is very positive about distributed ledger technology and blockchain technical service, is working with ENN and VeChain deployed the Pilot Blockchain-Enabled Liquified Natural Gas Solution to step into digital transformation and innovation by exploring blockchain technology. With the positive support of the Chinese Government, Shanghai Gas has chosen to join hands with the expertises from VeChain to kick off the further blockchain-based energy project, which has moved to the next stage of implementation after a successful pilot.
The LNG delivery information and the component information of the storage tank will be collected and then uploaded onto the VeChainThor Blockchain by leveraging the one-stop BaaS Data Platform in the primary stage. And this will result in the solution significantly banishes information barriers in the supply chain, contributes to a transparent product process and provides a reliable data base for LNG risk management. The COVID-19 epidemic has shown the importance of this emerging technology and the fruition of the first phase enabled Shanghai Gas to maintain their business operation online during this special period and will serve as a fundamental basis for the fully digital transformation roadmap to come.
The involved three parties have formulated a long-term strategic plan based on the business processes of Shanghai Gas. The importance of natural gas in China’s LNG market can be verbalized with the report published by the end of 2018 is the proven natural gas reserves in the countries along the ‘’The Belt and Road’’ accounts for 156.3 trillion cubic meters, occupying 79.4% of the worldwide proven natural gas reserves. VeChain being the co-founder of The Belt and Road Initiative Blockchain Alliance (BRIBA) is confident in enabling businesses and benefiting stakeholders along the ‘’The Belt and Road’’ with reliable blockchain technology.