Banks to Test Gas Trading on Blockchain

Blockchain, News | March 13, 2017 By:

ING and Societe Generale are in talks with traders to test liquefied natural gas (LNG) trading that will be based on blockchain.

In February, ING and Societe Generale successfully used blockchain technology to carry out a live oil trade between parties with Mercuria, a global commodity trading group. The banks claimed the test proved that there were significant speed, cost and risk benefits achieved via blockchain use.

“LNG is an area we definitely want to focus on because it’s a growing market,” said Patrick Arnaud, ING’s managing director for trade and commodity finance. “But at the same time, it’s controlled by a few very important players.”

Arnaud said the banks are already talking to several companies active in the LNG market about testing a blockchain-based deal. The timeframe was noted as “within months.”