Shanghai Gas Collaborates Further With VeChain To Implement The VeChainThor Blockchain-enabled Energy Project
March 31, 2020, Shanghai, China — Shanghai Gas (Group) Co., Ltd, a wholly-owned subsidiary of Shenergy Group Company Limited with registered capital of RMB 4.2 billion, collaborates further with VeChain to develop a blockchain-enabled energy project. As the overseeing body of the pilot LNG management solution in the Zhoushan LNG Storage and Distribution Centre co-convened by VeChain and ENN Energy Holdings Limited, Shanghai Gas saw the reductions in transaction complexity and cost brought by blockchain technology, and decided to seize the opportunity for more investments. The partnership aims to optimize business processes, reduce operation cost, improve the supply chain efficiency and build a trust-free “Energy-as-a-Service” ecosystem.
Natural gas is playing an increasingly important role in the energy market with its cost-effective, clean and environmentally friendly nature. According to the World Energy Outlook 2019 released by the International Energy Agency (IEA), one of the leading forces in terms of global demand of natural gas is China, which positions the Chinese domestic LNG market at the front line of the entire industry.
Facing the challenge of such a giant marketplace, in January 2017, the National Development and Reform Commission (NDRC) of China unveiled its 13th Five Year Plan on energy development, which emphasized to promote natural gas market reform and facilitate the building of a trusted energy national network. However, the lack of information sharing between stakeholders in the industry have brought difficulties in the deregulation of price controls, fair access for third parties involvement, and the separation of energy infrastructure from sales channels.
Under such circumstances, a more transparent solution to solve the problems of transaction processes, security issues, imbalance between supply and demand, pricing mechanisms has become a must need in the industry, in which blockchain technology has emerged as a viable solution.
As a dominant player in the domestic energy industry, occupying over 90% of the energy market in Shanghai, Shanghai Gas is on its way towards digital transformation and innovation by exploring blockchain technology. In 2018, Shanghai Gas, together with ENN and VeChain deployed the Pilot Blockchain-Enabled Liquified Natural Gas Solution. Based on the success of the pilot, Shanghai Gas acknowledged the positives of distributed ledger technology and the advantages of blockchain technical services, which leads to their decision to enhance the collaboration to reap more benefits.
On October 24, 2019, the Chinese Government underscored the importance of blockchain technology in the energy industry, which accelerated the speed from innovation to real application. Heeding the call of the Government, the attention towards blockchain adoption has accelerated among businesses, enterprises and authorities in China. In this regard, Shanghai Gas chose 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.
In the first phase of this project, the LNG delivery information and the component information of the storage tank, which shows the quality of LNG will be collected and uploaded onto the VeChainThor blockchain by leveraging the one-stop BaaS Data Platform — VeChain ToolChain™. As a result, the solution significantly eliminates information barriers in the supply chain, contributes to a transparent product process, and provides a reliable data base for LNG risk management. The project will involve all stakeholders, both upstream and downstream in the entire supply chain for the contribution to the creation of a blockchain-based energy ecosystem in the future.
Due to the unexpected global outbreak of the COVID-19 epidemic, many enterprises are now having to work remotely. A dramatic demand for digital transformation has occurred, calling for the integration of emerging technology such as cloud and blockchain based services. The success 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 three parties have formulated a long-term strategic plan based on the business processes of Shanghai Gas, which is to incorporate a comprehensive blockchain-enabled ‘Energy-as-a-Service’ business ecosystem that includes logistics management, energy trading, innovative financial products and involves key stakeholders around the energy industry.
Here is the webpage of storage information, which contains (from the left to the right) Tank No; Collection Date; Total Volume; VID; TX ID; Hash Value; Verification Results.
With the continued development and reform of the LNG market in China, a huge and vibrant natural gas market potentially brought by the countries along “The Belt and Road” is being expected. According to the BP Statistical Review of World Energy 2019, by the end of 2018, 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. The countries along the “The Belt and Road” consumed a total of about 1,685 million tonnes of oil equivalent, which is 51% of worldwide natural gas consumption, among which Russia and China ranked at the second and the third among all of the countries.
As “The Belt and Road” initiative progresses, companies that lead the pack in terms of possessing advanced digital infrastructure and technology will play a central role. As the co-founder of The Belt and Road Initiative Blockchain Alliance (BRIBA), VeChain is confident in enabling businesses and benefiting all stakeholders along the “The Belt and Road” with reliable and proven blockchain technology and infrastructure.
About Shanghai Gas (Group) Co., Ltd.
Shanghai Gas (Group) Co., Ltd. is a wholly-owned subsidiary of Shenergy Group Company Limited with registered capital of RMB 4.2 billion. The business scope of the Company covers the investment, construction, operation, and sales of natural gas pipeline network, production and marketing of manufactured gas as well as operation of liquefied gas. The Company occupies over 90% of the gas market of Shanghai with its customer size and storage & transportation capacity ranking the first in China.
Launched in 2015, VeChain aims to connect blockchain technology to the real world by providing a comprehensive governance structure, a robust economic model, and IoT integration. VeChain is the pioneer of real-world applications using public blockchain technology, with international operations in Singapore, Luxembourg, Tokyo, Shanghai, Paris, Hong Kong, and San Francisco. Together with our strategic partners PwC and DNV GL, we have established cooperative relations with many leading enterprises in different industries, including Walmart China, BMW, BYD Auto, Haier, H&M, LVMH, D.I.G, ENN, AWS, PICC, ASI etc.For more information about VeChain, please follow our twitter @vechainofficial or visit our official website www.vechain.com. For news inquiries, please email to email@example.com