Sinochem Group, a Chinese petrochemical company, has announced that it has used blockchain technology to successful export gasoline in a trial shipment. The test was done by Sinochem Energy Technology, a subsidiary of Sinochem Group. According to Chinese state media the shipment was moved to Singapore from Quanzhou, a city in China. Per Sinochem this marked the first time a commodity trading system based on blockchain technology was being used in shipping where all the key players in the process were involved.
Last year in December Sinochem was involved in a trial where the importation of crude oil from Middle East was simulated on blockchain. From the simulation Sinochem said that smart contracts and digitized bills of lading would lead to the streamlining of crude oil transactions and a reduction in the financing costs by between 20% and 30%.
Globally the energy sector has shown a lot of interest in the blockchain technology and several oil majors have explored its used in energy trading platforms. In June last year Eni and BP conducted trials that used blockchain technology in a gas trading platform. Two European energy giants, E.on and Enel, have also experimented with a blockchain platform which was developed by Ponton, an IT firm. One of the biggest electricity providers in Australia is also conducting a trial of a blockchain platform known as Power Ledger.
This comes in the wake of the blockchain consortium formed to develop standards for blockchain applications in the shipping, logistics and trucking sectors, BiTA (Blockchain in Transport Alliance) announced that Purolator had joined the group.
Blockchain in Transport Alliance
According to the chief information officer and vice president of Purolator, Ricardo Costa, the firm which is based in Canada wanted to give its contribution in helping blockchain shape the future of the logistics and shipping sector. Per Costa some of the benefits of blockchain to the logistics and shipping sector will include loss prevention, security and vendor management.
For Purolator blockchain applications will assist the Canadian giant in giving its customers an exception experience with regards to tracking, speed and improved shipment visibility. Besides developing blockchain standards BiTA carries out education for the shipping industry.