ING and Societe Generale banks are having talks with traders in order to test and explore liquefied natural gas (LNG) trading using blockchain technology, Reuters reported.
The move comes a month after ING and SocGen successfully used blockchain technology to carry out a live oil trade between parties with Mercuria, a global commodity trading group. The blockchain test proved that there were significant speed, cost and risk benefits to be achieved.
"LNG is an area we definitely want to focus on because it's a growing market but at the same time it's controlled by a few very important players," Patrick Arnaud, ING's managing director for trade and commodity finance, stated.
According to Patrick, the company is already in talks with several firms that are active in the LNG market about testing a blockchain-based deal within months. The names of the companies that are into the project were not mentioned.
Various firms are testing blockchain technology for energies trading including Energi Mine that was founded by Omar Rahim, a former energy trader at big utilities, in order to develop a blockchain-based trading platform linking big energy users with battery storage to buy electricity at the cheapest times. Also, Wien Energie is testing the potentials of blockchain in wholesale gas trading together with start-up BTL and supported by consultancy EY.
Innogy SE, a German-based energy company is also in talks with European peers Fortum, Enel, and Enexis, among others, to implement blockchain technology to their networks of electric car charging stations.
