VeChain, Chinese Energy Firms Partner to Build Blockchain-Based LNG Solution

LNG Carrier
LNG Carrier /Flickr

Singapore based blockchain firm VeChain has formed a partnership with two Chinese energy companies to build a liquefied natural gas (LNG) management solution using blockchain.

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At the China International Gas & Heating Technology and Equipment Exhibition 2018 hosted by the China Gas Association, it was revealed that ENN Energy Holdings and Shanghai Gas will use the blockchain technology to develop an LNG management solution in bid to streamline the supply chain data in the energy and gas industry.

Partnership To Use VeChainThor Blockchain

As part of the partnership, ENN Energy is responsible for the design and system construction of LNG-related business developments. The company will provide the necessary vehicles/equipment and the onsite technical team and testing locations.

On the other hand, Shanghai Gas will be the overseeing party to ensure that the solution expands across the national LNG market and has already connected a host of similar companies to the expansion of the solution. The company will provide policy guidance ensuring government mandates and related process management.

In addition, Shanghai Gas will provide resource coordination and support for the development of LNG-related businesses within the commercial landing project to facilitate its national expansion.

Meanwhile, VeChain will provide blockchain core technology and the necessary software services. The company’s VeChainThor Blockchain will power the solution.

Blockchain-Based LNG Management Solution

The proposed solution will handle the quality assurance process including classification standards, weighing practices, and transportation process for the different types of natural gas.

All information is certified by a third-party authority and uploaded to the VeChainThor Blockchain to establish credible industry standards per government mandates. Then, all aspects related to the data will be tracked, shared, and traded using the VeChainThor Blockchain which will be used for further auditing the LNG market, according to a press statement issued by VeChain.

The online LNG trading exchange for the solution will use affiliated to ENN Energy. VeChain is responsible for providing backend blockchain infrastructure technology for this exchange. The VeChainThor Blockchain will be used for processes and procedures currently on the website, including the storage of qualification certificates and SKU inspection reports.

Zhoushan LNG Storage and Distribution Centre will be the first to implement the blockchain-based solution during the pilot phase prior to a broader rollout. Zhoushan includes 3 docks, 2 all-inclusive LNG storage tanks, 14 tank truck loading rafts, high-pressure IFV gasification facilities, high-pressure external transmission, cold energy power generation and other supporting technologies and auxiliary facilities. The annual processing capacity of LNG at the plant is 3 million tons, VeChain said in the statement.

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