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Russia integrates Blockchain technology for gas supply

Blockchain technology for gas supply

According to reports coming from Gazprom, a leading oil and gas company in Russia, it has completed a Blockchain pilot project which will enable the company to use Blockchain technology for gas supply to record contracts.

The company will be integrating the Blockchain Technology capabilities with its operations.

Gazprom company is a state-owned firm and will be collaborating with Gazprombank in order to develop a Distributed ledger technology prototype that will execute gas agreements with the use of smart contracts.

Blockchain technology for gas supply

Alexey Miller, the head of Gazprom has reportedly met with the Russian Prime Minister, Dmitry Medvedev in order to give this project a green-light.

Miller made statement saying that:

“Presently, we have worked with Gazprombank to develop a blockchain prototype. The platform will automate the process of entering into, monitoring and executing contracts. This system also involves automatic calculation of gas payments.”

The head of Gazprom later revealed that the Blockchain will enable the authorization of parties to take part in gas transactions while proving access to vital information through the system. This system will be leveraging the immutable ledger of the DLT in order to safe guard against unauthorised interferences and any unwanted alterations to contracting documents.

The Distributed Ledger Technology pilot phase

The company reported that during the pilot phase of the Blockchain test, all radio frequency tags (RFID) and satellite positioning sensors (GPS) were installed on the gas shipment equipment of Gazprom.

Data was recorded on the RFID tags after the gas was ready for shipment from the firm’s Veliky Novgorod plant which later generated a document containing delivery informations.

Blockchain technology for gas supply

The Russian company later used GPS sensors in order to monitor the movement of the cargos being moved. This also Included the speed, numbers, and the duration of deliveries from Veliky Novgorod to storage facilities in Murmansk.

This was later recorded via a Smart Contract along with the entire data gathered from the RFID and the GPS systems.

Gazprom plans to use the blockchain solution in Russia for further storing of complex information such as warehouse and transport operations, including the management of its entire supply chain.

The company has made it clear that it firmly believes in the DLT potential after this tremendous success of a Blockchain pilot phase and that it will be a huge success in the oil and gas sector.

Companies like Shell and other cooperations have also started similar projects in order to take advantaged of the benefits that the blockchain has to offer.

Gazprom wants to implement the process as soon as possible and will be focusing on automating the maintenance of gas supply and contractual agreements.

As Gazprom uses the Blockchain technology for gas supply, do you think we can see other companies follow suit?

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coinmag

My occupation is the Research of blockchains and their practical applications in the economy. I have graduated through various levels of education, including electrical technique, Business, Psychology, and innovative technologies.

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