According to the latest Reuters report, banks ING and Societe Generale are in talks with traders to test LNG trading based on blockchain, the technology starting to shake up the traditional energy industry.
Blockchain, which originates from digital currency bitcoin, works as an electronic transaction-processing and record-keeping system that allows all parties to track information through a secure network, with no need for third-party verification.
While established energy suppliers and traders will continue operating as they are for the foreseeable future, blockchain is starting to break into the power market.
The banks said their blockchain platform helped Mercuria reduce some processes from three hours to 25 minutes and make cost savings of up to 30%, supporting the case for expansion into LNG.
Wien Energie is still testing the use of blockchain in wholesale gas trading together with start-up BTL and supported by consultancy EY.
Big utilities too have started investing in blockchain, exploring the use of the technology in different parts of the sector.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10032017/ing-and-socgen-to-test-lng-trading/