Energy majors BP, Shell and Statoil are to co-develop a blockchain-based digital platform for energy trading, Platts reports.
The investor group, which includes trading houses Gunvor, Koch Supply & Trading, and Mercuria, plus banks ABN Amro, ING and Societe Generale, aims to “modernize and transform post-transaction management of physical energy commodities trading,” the companies said in a joint statement Monday.
“The intent is to move away from traditional and cumbersome paper contracts and operations documentation to secure, smart contracts and authenticated transfers of electronic documents,” the group said.
The platform is to be managed and operated as an independent entity and is expected to be operational by the end of 2018.
The goal is to create a secure, real-time blockchain-based digital platform to manage physical energy transactions from trade entry to final settlement.
The platform should reduce administrative operational risks and costs of physical energy trading. Over time, the venture intends to lead the migration of all forms of energy transaction data to the blockchain, the companies said.
Recall in In June, BP and Italy’s Eni completed a pilot program for European gas trading using blockchain technology developed by Canada’s BTL Group.
In May, over 20 European energy trading firms joined forces to develop peer-to-peer blockchain-based trading using Hamburg-based IT company Ponton’s Enerchain framework.
In October, E.ON and Enel completed a first power trade using the system.
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