Managed and operated as an independent entity, the new venture will focus on developing a secure, real-time blockchain-based digital platform to upgrade and transform energy commodities trading.
Subject to regulatory clearance, the platform will manage physical energy transactions from trade entry to final settlement.
The consortium comprises energy majors BP, Shell and Statoil; trading houses Gunvor, Koch Supply & Trading, and Mercuria; as well as banks ABN Amro, ING and Societe Generale.
In addition to reducing administrative operational risks and physical energy trading costs, the blockchain-based platform will help in improving the reliability and efficiency of back-end trading operations for all supply chain users.
ING trade and commodity finance global head Anthony van Vliet said: “Marquee brands and competitors in the energy, trade and banking industry sharing one vision gives us a great opportunity to transform processing in the energy trade commodity sector.”
Planned to be operational by the end of 2018, the platform is also expected to open the door to innovative funding and financing solutions, the consortium said.
The group noted: "The intent is to move away from traditional and cumbersome paper contracts and operations documentation to secure, smart contracts and authenticated transfers of electronic documents.”
The venture seeks to lead the migration of all forms of energy transaction data to the blockchain in future. This is expected to result in improving data quality and security.
