Chinese petrochemical giant Sinochem Group has succeeded in utilizing blockchain technology to carry out a gasoline export.
The trial shipment was completed by the group’s subsidiary, Sinochem Energy Technology, and traveled from the Chinese city of Quanzhou to Singapore, Xinhua said on Monday.
The state-owned corporation reportedly claimed that the trial shipment marks the first time that a blockchain-based commodity trading system has included all the central parties in the process.
Sinochem has previously experimented with blockchain technology, announcing in December that it had completed China’s “first simulated transaction of blockchain crude oil import business from the Middle East.”
At that time, the group said the simulation indicated that digital bills of lading and smart contracts could streamline crude oil transactions, “optimizing 20-30 percent of financing costs.”
It remarked in its December statement,
“The standardization and platformization of the blockchain technology enabled trade in China’s petrochemical industry in the future will help improve the transparency of the transaction business in China’s petrochemical industry and enhance the overall risk management level of the industry.”
The global energy sector has demonstrated considerable interest in blockchain technology, with several major corporations exploring blockchain-based energy trading platforms. Major oil companies BP and Eni started experimenting with one such platform for gas trading in June of 2017.
European energy giants Enel and E.on have also conducted trials using a blockchain platform developed by IT firm Ponton, and one of Australia’s largest electricity providers is currently testing a platform called Power Ledger.
Fuel tanker image via Shutterstock