Two European banks are in talks with companies in the LNG market to offer a transaction recording system based on blockchain technology. These are ING Direct, of Netherlands and Societe Generale, France, who, after having tested with an oil cargo from Mercuria, want to enter the LNG world.
In fact, the significant results of the test of Easy Trading Connect with the oil company are an incentive for this new test, because with the application of a blockchain to the transaction, significantly reduced costs and time invested.
Patrick Arnaud, General Director for Trade and Commodity Financing of ING Direct, said, "the LNG is an area that we definitely want to focus on, as it is a growing market target, and at the same time it is controlled by a few very important players of ING".
According to Arnaud, ING is already in talks with some companies in the field to run some pilot tests with the application of blockchain to operations with LNG, although it reserved their names. The tests they conducted in February, along with Mercuria, were extremely successful. With the application of the technology, the time of operations of the oil charge was reduced from 3 hours to 25 minutes, and also meant a cut of about 30% in costs.
The oil cargo was sold up to 3 times successfully on its journey from Africa to China, and the application of smart contracts proved its effectiveness, eliminating paperwork and unnecessary checks. These initiatives have a clear horizon: that the application of blockchain to certain areas of trade and global finance will allow new levels of security and significant improvements, and even governments of the world begin to see the potential of this technology for public administration.