Chinese Petrochemical Giant is using Blockchain on big Gasoline Project

The blockchain technology has captured the attention of big investors.

Few days ago Sinochem Group, a chinese petrochemical giant, has successfully used this innovative technology to perform a gasoline export.

Sinochem Group businesses are focused on energy, agriculture, chemicals, real estate, and finance service businesses in China and internationally. It is involved in the exploration and production, refining and trading, warehousing and marketing, and distribution and retailing of oil and gas. Sinochem is a State-owned company and during 2016 generated revenues for 59 billion dollars.

All the trials were not revealed but Sinochem Group states that it is not the first expedition with the blockchain technology, in fact, one was conducted in December, 2017 for importing crude oil from Middle East.

After the shipment, Sinochem Group posted on its website a little announcement explaining their vision about blockchain tech:

“The blockchain technology is characterized by transparency, efficiency, safety and stability. The standardization and platformization of the blockchain technology enabled trade in China’s petrochemical industry in the future will help improve the transparency of the transaction business in China’s petrochemical industry and enhance the overall risk management level of the industry.”

So the digital world and small contracts could save almost 20% or 30% financial costs. Deployment a cost-effective method for future shipment will be a great benefit for China in the longer term.

Similar situations among public and big companies are expected to emerge in the coming months and years. For example in June, BP partnered with Italian oil giant Eni, Wien Energie of Austria, technology company BTL of Canada as well as Ernst & Young to conduct natural gas trading pilot based on blockchain.

Chinese government is investing many billions dollars on its companies. The strategy is disruptive: change old businesses methodologies with new technologies, blockchain and cryptocurrencies are part of the new digital era and asian countries are leading the change.

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