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Costs Cut By 30%, China’s Petrochemical Enterprises Embrace Blockchain Technology

Beijing, Dec.25 (Xinhua) China’s Sinochem Corporation recently successfully piloted its first blockchain-based crude oil import trading targeting crude oil business from the Middle East importing to China.


An effect analysis of the trading shows that the digital bill of lading and smart contract as two major support for this application could significantly enhance the efficiency of crude oil transactions and optimize the transaction financing costs by 20% to 30%.

Featured by transparency, efficiency and security, blockchain technology could provide standard and platform for the tradings in the petrochemical industry in the future, and help enhance the transparency and risk management level of the trading business in the petrochemical industry.

Global acceleration of blockchain application pilots

At present, some large overseas traders are stepping up the blockchain application pilot projects, with many global oil giants involved. In February this year, Mercuria, a large-scale international energy and commodities trader, jointly piloted the blockchain application of crude oil with SG and ING. In March, TIC (Trafigura In China) joined Natixis and IBM to conduct the crude oil trading in Texas United States with blockchain technology on trial. In June, BP partnered with Italian oil giant Eni, Wien Energie of Austria, technology company BTL of Canada and Ernst & Young to conduct natural gas trading pilot based on blockchain……

In December, the successful pilot trial of the first blockchain trade in China’s petrochemical industry led by Sinochem Corp, demonstrates the confidence and strength of China’s petrochemical enterprises in entering the blockchain field and leading the global crude oil trade.

Global orientation and policy support

Blockchain has been listed in China’s “13th Five-Year Plan” of National Informatization. As one of the key elements of a sound digital infrastructure, blockchain will become a key application technology for building “Digital China” in an all-round way together with Big Data and Artificial Intelligence.

Blockchain technology’s successful applications in a row in the global petrochemical industry, would definitely usher in the climax of a variety of blockchain innovative applications in areas such as safe and reliable P2P real-time transactions worldwide, efficient and costless innovative finance, smart transactions, and the IOT-related big data platform.


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