ING & Societe Generale to test blockchain-based LNG trading

posted about 1 year ago
Banks ING and Societe Generale are in talks with traders to test liquefied natural gas (LNG) trading based on blockchain, the technology starting to shake up the traditional energy industry.

n February, ING and Societe Generale offered their blockchain platform to trading house Mercuria to sell an African oil cargo to China.

The banks said their blockchain platform helped Mercuria reduce some processes from three hours to 25 minutes and make cost savings of up to 30 percent, supporting the case for expansion into LNG, natural gas converted to liquid form for easier storage or transport.

"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," said ING's managing director for trade and commodity finance, Patrick Arnaud.

He is already talking to several companies active in the LNG market about testing a blockchain-based deal within months.

Mercuria Chief Executive Marco Dunand said last year blockchain payments could slash payment costs in a system stuck in the "17th or 18th century" by some 30 percent.
Tags: news, blockchain