China’s Sinochem Complete Gasoline Export Over Blockchain System With Government Effort
BEIJING April 2, 2018 – Chinese petrochemical giant Sinochem Group has successfully leveraged blockchain technology to conduct a gasoline shipment.
Sinochem Group is a key state-owned enterprise and one of China’s four state oil companies, ranking 143rd in 2017 in the Fortune Global 500 list. The trial shipment was completed by the group’s subsidiary, Sinochem Energy Technology, and traveled from the Chinese city of Quanzhou to Singapore, reported by Xinhua on Monday.
This is the world’s first blockchain application in energy trade with government involvement, and also marks the first time that essential parties in the run of staple commodity trading are all involved with blockchain.
By using blockchain technology, bills of key sectors in the cross-border trades were digitized, and transaction information like contract signing, payment remittance, bill of lading and customs controls in the process were easily recorded. Compared to the traditional approach, the application of blockchain helps enhance the efficiency by more than 50% and optimize over 30% financing cost.
Actually it is not Sinochem’s first try on blockchain application. Last December, the corporation has succeeded in China’s first simulated transaction of blockchain crude oil import trading from the Middle East. At that time, analysis showed that the digital bill of lading and smart contract as two major support for it could significantly enhance the efficiency of crude oil transactions and optimize the transaction financing costs by 20% to 30%.
A few months later, this time blockchain technology is used in gasoline export business. It simplifies the procedures and shortens the transaction time in traditional cross-border trades of energy chemical industry. The global energy sector has showed considerable interest in blockchain technology and offered big hugs for blockchain-powered business. Some large overseas traders are stepping up the blockchain application pilot projects. Last February, Mercuria, a large-scale international energy and commodities trader, jointly piloted the blockchain application of crude oil with SG and ING. In the following March, TIC (Trafigura In China) joined Natixis and IBM to conduct the crude oil trading in Texas United States with blockchain technology on trial. Soon in June, BP partnered with Italian oil giant Eni, Wien Energie of Austria, technology company BTL of Canada as well as Ernst & Young to conduct natural gas trading pilot based on blockchain……