Shanghai Gas Collaborates with VeChain to Roll out Blockchain-Powered Energy-as-a-Service Platform After Successful Test Phase

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 ToolChain^TM. 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.