- The VeChain Foundation has entered into a partnership with the Chinese natural gas giant Shanghai Gas to build an „Energy-as-a-Service“ ecosystem.
- In a first step of the project, information on LNG will be collected and stored on the VeChainThor Blockchain.
VeChain gains further acceptance in China. Since the Chinese President Xi Jinping gave a speech in October, in which he said that China must “ use the chances“, which arise from Blockchain, VeChain has been able to establish several well-known partnerships in China. For example, the VeChain Foundation has entered into a partnership with the Anhui Tea Association and has been promoted by the state media in China.
As it became known yesterday, China’s Shanghai Gas (Group) Co, Ltd, a subsidiary of the Shenergy Group Company Limited with a registered capital of 4.2 billion RMB (about 592 million USD) will work with VeChain to build an „Energy-as-a-Service“ ecosystem. With this, VeChain brings the next major company on board to transform the energy sector in China through VeChainThor Blockchain.
Natural gas giant from China chooses VeChain
Shanghai Gas is a giant in the Chinese market for natural gas and liquefied natural gas. It accounts for 90 percent of Shanghai’s gas market and is the largest supplier in China in terms of customer size as well as storage and transport capacity. In 2018, Shanghai Gas, together with ENN Energy Holdings and VeChain, already implemented a pilot project for the liquefied natural gas storage and distribution center in Zhoushan.
As stated in VeChain’s blog post, Shanghai Gas was excited about the results of the pilot project, and the partnership now aims to optimize business processes for the entire company, reduce operating costs and improve supply chain efficiency. In addition, VeChain, ENN and Shanghai Gas also aim to address the lack of information exchange between players across the industry:
Under these circumstances, a more transparent solution to the problems of transaction processes, security issues, supply/demand mismatches and pricing mechanisms has become a necessity in an industry where block chain technology has emerged as a viable solution.
In the first phase of the project, the LNG supply and storage information, which shows the quality of the Liquefied Natural Gas, will be collected and stored on the VeChainThor Blockchain. This should significantly reduce the information barriers in the supply chain and create a more transparent product process.
The project will involve all „stakeholders, both up and downstream in the supply chain, to assist in the future creation of a blockchain-based energy ecosystem“. The technical implementation will be done via the VeChain ToolChainTM, whereby Shanghai Gas will be allowed in the first phase, due to the corona virus, to maintain its business operations remotely via the cloud and blockchain based solution.
Over the long term, the three parties formed a strategic plan based on Shanghai Gas‘ business processes to create a comprehensive blockchain-enabled „Energy-as-a-Service“ ecosystem that includes logistics management, energy trading and innovative financial products, and brings together key energy industry stakeholders.
In addition, VeChain is optimistic that the use of the Energy-as-a-Service ecosystem can be extended to the participating energy companies of the Belt and Road Initiative, a global development strategy in nearly 70 countries in Asia, Europe and Africa. The VeChain Foundation comments on this:
With the ongoing development and transformation of the LNG market in China, a huge and dynamic natural gas market is expected, which could be supported by the countries along the „Belt and Road“. […]
As „The Belt and Road“ initiative progresses, companies that are leaders in the ownership of advanced digital infrastructure and technology will play a central role. As co-founder of the Blockchain Alliance of The Belt and Road Initiative (BRIBA), VeChain is confident that the reliable and proven blockchain technology and infrastructure will benefit companies and all stakeholders along the Belt and Road.