VeChain enables blockchain for Chinese LNG
November 13, 2018
VeChain is partnering Chinese energy companies to pilot blockchain-enabled liquified natural gas (LNG).
China's commitment to clean energy adoption and the reduction of carbon emissions has taken a step forward with the announcement of LNG management, enabled by the VeChain Thor blockchain. This is the result of a joint initiative between VeChain and two of China's leading energy and gas companies – ENN Energy Holdings and Shanghai Gas Group.
ENN Energy Holdings is responsible for the design and system construction of LNG-related business scenarios and is providing the necessary vehicles and equipment. In the pilot rollout, ENN will provide the onsite technical team and testing locations working within its existing businesses. As an extension of the pilot and surrounding tests, ENN will also be one of the operating parties in the commercial landing projects.
VeChain is responsible for providing blockchain core technology and the necessary software services.
Shanghai Gas is the overseeing party for ensuring the expansion across the national LNG market and has already connected a host of similar companies. Its role is to provide policy guidance ensuring government mandates and related process management. 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.
The system handles 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 Thor blockchain to establish credible industry standards per government mandates. From there, all aspects related to the data will be tracked, shared and traded using the Thor blockchain, which will be used for further auditing the LNG market.
The online LNG trading exchange will use Greatgas.cn affiliated to ENN. VeChain is responsible for providing backend blockchain infrastructure technology for this exchange. The Thor blockchain will be used for processes and procedures currently on the web site, including the storage of qualification certificates and SKU inspection reports.
Zhoushan LNG Storage & Distribution Centre will be the first to implement this during the pilot phase prior to a broader rollout. The centre (pictured) includes three docks, two all-inclusive LNG storage tanks, 14 tank lorry 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 this plant is three million tons.
ENN Energy Holdings has been involved in the urban pipeline gas business since 1992. It is one of the largest-scale clean energy distributors in China. It has formed four core businesses – natural gas sales, integrated energy service, energy trade, and energy transmission and distribution. By the end of 2017, the company had a total asset of RMB60bn and more than 400 wholly-owned and holding companies and branches, with more than 32,000 employees.
Since the forming of Shanghai Gas in 1865, the state-owned urban gas company has experienced more than 150 years of business. As of 2017, the Shanghai Gas market share accounted for more than 90% of Shanghai's total market, with an annual supply of more than eight billion cubic metres.
Formed 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. It has operations in Singapore, Luxembourg, Tokyo, Shanghai, Paris, Hong Kong and San Francisco.