SHANGHAI, March 31, 2020 /PRNewswire/ -- Shanghai Gas (Group) Co., Ltd, a wholly-owned subsidiary of Shenergy Group Company Limited which provides energy coverage for greater Shanghai Metropolitan area, collaborate further with VeChain to develop and roll out a blockchain-enabled energy project. The partnership aims to optimize business processes, reduce operation costs, improve the supply chain efficiency and build a trust-free "Energy-as-a-Service" ecosystem.
As one of the leading forces of the global demand for natural gas, China is facing the challenge of effective management of its domestic market. In 2017, the National Development and Reform Commission (NDRC) of China unveiled its 13th Five Year Plan on energy development to facilitate the building of a trusted energy national network, but the lack of information sharing between stakeholders has brought great difficulties. Therefore, a more transparent solution 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, Shanghai Gas joined hands with ENN and VeChain to deploy the Pilot Blockchain-Enabled LNG (Liquified Natural Gas) Solution. Based on the success of the pilot project, Shanghai Gas decides to enhance the collaboration to reap more benefits, which leads to the decision to kick off the further blockchain-based energy project.
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 ToolChainTM. As a result, the solution significantly eliminates information barriers in the supply chain, contributes to a transparent product process, and provides a reliable database 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.
The global outbreak of the COVID-19 pandemic has facilitated a dramatic demand for digital transformation. The success of the first phase enabled Shanghai Gas to maintain its business operation online during this special period and will serve as a fundamental basis for the fully digital transformation roadmap to come.
The collaboration has formulated a long-term strategic plan 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.
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 with the "The Belt and Road" account 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 which provides energy coverage for the greater Shanghai Metro Area. 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 #1 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.