VeChain enters the 2nd project phase with Chinese natural gas giant

  • The VeChain Foundation and the Chinese natural gas giant Shanghai Gas are starting the second phase of the project to build an “energy as a service” ecosystem.
  • In the second phase, the feasibility of the VeChainThor integration will be analyzed and studies will be carried out to examine new financial opportunities in the energy industry.

Back in April, the VeChain Foundation and the Chinese natural gas giant Shanghai Gas (Group) Co, Ltd. agreed to work closely together to establish an “energy-as-a-service” ecosystem. The energy group is a big player in China, has a share capital of 4.2 billion RMB (about 592 million USD) and occupies about 90 percent of Shanghai’s gas market. It is also the largest supplier in mainland China in terms of customer size as well as storage and transportation capacity.

The partnership dates back to 2018 when Shanghai Gas, together with ENN Energy Holdings and VeChain, launched a pilot project for the LNG storage and distribution center in Zhoushan. In April, Shanghai Gas was delighted with the results of the pilot project, which is why the expansion of the partnership beyond the pilot project was agreed.

ENN Group and Shanghai Gas are committed to accelerate their business processes and improve supply chain efficiency through an “energy as a service” ecosystem. In particular, the collaboration will also automate the energy giant’s work process, including energy trading, logistics management, financial product processing and collaboration with key energy partners.

In the first phase of the project, the delivery information of the LNG and the information of the storage facility, which shows the quality of the LNG, were stored on the VeChainThor blockchain. As local Chinese media now report, Shanghai Natural Gas is currently planning to enter the second phase of the project.

This includes investigating the feasibility of the blockchain integration, promoting the development of energy trading and logistics management through research, and creating new financial opportunities in the energy industry. According to the report, stakeholders in the value chain, including insurance companies, logistics companies and banks, will benefit from the initiative.

Since Chinese President Xi Jinping gave a speech in October last year in which he said that China must “seize the opportunities” presented by the blockchain, the country has been making massive efforts to expand the use of the blockchain. As the report also explains, the market for blockchain energy solutions is growing rapidly. Experts estimate that the value of this market in China will rise to as much as USD 35 billion by 2025.

VeChain (VET) price stays bullish

Together with the general market trend, the VeChain (VET) price continues to show bullish signs. Over the past months, VET has been one of the biggest winners in the crypto market. Since the beginning of the year, VET has risen from USD 0.0053 to currently USD 0.0210, almost quadrupling its price.

As analyst “Teddy” noted yesterday, the VET price continues to show bullish signals on the daily chart. After VET was able to break out of a downward trend channel a few days ago, a further upward trend is imminent.

About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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