S&P Global Platts has started the deployment of its Fujairah Oil Industry Zone Blockchain network, bringing the ‘first’ DLT implementation to the energy sector.
S&P Global Platts, one of the leading independent providers of information for the commodities and energy markets, announced that it started the deployment of its Blockchain solution that “will allow market participants to submit weekly inventory oil storage data” to UAE’s Fujairah Oil Industry Zone (FOIZ) and the regulator FEDCom, according to a release published on Feb. 22
According to Platts’ release, the Blockchain-based innovation will facilitate and secure the “unstructured process” of communication between terminal operators. The technology will reduce the need for manual data management by the regulator FEDCom and improve the quality of data by automatically validating the numbers, which will help avoid human errors.
The joint Platts and Fujairah oil storage reporting system is the first commercial implementation of Blockchain technology in the energy business to go live, Platts claims in its release.
In November 2017, BP, Shell and other traders have established a consortium with plans to develop a Blockchain-based platform for energy commodities trading by the end of 2018.
Earlier in 2017 Cointelegraph reported about major oil industry regions considering Blockchain technology as a solution to stabilize oil prices as well as to provide transparency for the industry players and to reduce the amount of manual work in the energy sector.