Shanghai Gas Co., Ltd, collaborates with Vechain to bring further development in blockchain-based energy projects. The economically feasible nature of blockchain technology encouraged Shanghai to seize the opportunity for further investments. Besides cost-effectiveness, Shanghai Gas discovered a lot of potential in this collaboration as the blockchain technology has reduced the complexity in the transaction and made it easier to be used.
After a successful test phase, Shanghai Gas has now decided to further collaborate with #VeChain to introduce a comprehensive #blockchain-powered 'Energy-as-a-Service' Platform & business ecosystem that includes logistics management, energy trading & more.https://t.co/xWUdIlJkXb
— VeChain Foundation (@vechainofficial) March 31, 2020
According to the Vechain News, This collaboration aims to enhance the business processes, make considerable reductions in operation costs, and make improvements in supply chain efficiency while further building a trust-free “Energy-as-a-Service” ecosystem.
The Significance of Natural Gas in the Energy Market
Natural gas is gradually playing a vital role in the energy market. It’s cost-effectiveness, it’s pure and environment-friendly nature makes it an important source of energy and investment.
As per the reports of the World Energy Outlook 2019, released by the International Energy Agency (IEA), countries like China are few leading forces based on the demands of natural gas, as China stands at the forefront in the LNG market industry across the globe.
Despite facing challenges in such a wide marketplace back in 2017, the National Development and Reform Commission (NDRC) of China revealed their 13th Five Year Plan on energy development, which aims to encourage and promote the natural gas market.
What’s the solution to this?
To overcome problems of transaction processes, security, the variance between demand and supply, a more transparent solution with an effective pricing mechanism is the need of the industry; blockchain technology can provide the most reliable solution in this regard.
Shanghai Gas has been leading the domestic energy industry by covering 90% of the energy market in Shanghai. It is now moving ahead towards the implementation of a digital system and making innovations with blockchain technology.
What is This Project About?
In the first phase, the LNG delivery information and the component information from the storage tank, which shows the quality of the LNG will be collected and uploaded into the VeChainThor blockchain by controlling the one-stop BaaS Data Platform i.e. VeChain ToolChainTM.
As a result, this applied solution removes barriers of information in the supply chain, and ensures a more transparent process, along with a reliable database for LNG risk management. This project will be involving all stakeholders, including both upstream and downstream parties, to make their contributions towards a blockchain-based energy ecosystem in the near future.
Effect of COVID-19 on the Industry: Increasing Demand of Digital Transformation
The unexpected spread of the novel coronavirus has compelled a lot of organizations to work remotely. This has rapidly increased the demand for digital transformation, which calls for the unification of developing technologies like cloud and services based on blockchain.
The success of phase one of this project has enabled Shanghai Gas to keep going with its operations online during the outbreak and they will serve for the upcoming digital transformation.
These three organizations have together designed a strategic plan that is based on the business processes of Shanghai Gas, which is to implement a detailed blockchain-enabled “Energy-as-as-Service” business ecosystem which comprises of management of the logistics, energy trading, new financial products that involve key stakeholders from the energy industry.