US pilot will test blockchain for natural gas settlement

Last update on Jan. 21, 2020.

US pilot will test blockchain for natural gas settlement

Digital asset management company Big Data Energy Services and infrastructure consultants Ardua Strategies will examine the benefits of using distributed ledger technology in the natural gas settlement process.

The project will automate the many manual steps for post-trade processes including pricing, confirmation, settlement and invoicing. “Many key gas market participants have recognized the massive impact this transformative technology can have on the commercial functions of the industry and have been collaborating to demonstrate a path forward for its implementation, “says Cade Burks, chief digital officer of Houston-based Big Data Energy Services. “Through the proposed distributed ledger utilizing the NAESB (North American Energy Standards Board) standards, the industry can modernize the existing natural gas contracting and settlement process by automating the parts of transactions that are currently performed manually – alleviating bottlenecks and increasing efficiency and security.”

Big Data Energy Services will manage the technology infrastructure, select software providers, develop EDI interfaces into the DLT and coordinate with all stakeholders on standards documentation. Ardua Strategies will take a lead role in testing the surety of the DLT and EDI transactional process and for providing an independent and comprehensive cybersecurity review, covering DLT, the implementation across the EDI schema, end-point security, and human-system risks. “In addition to adding efficiency to the settlement processes, it’s anticipated that the cybersecurity benefits that DLT can provide will add confidence and integrity to the transaction. Mitigating cyber risks results in a stable natural gas market that is less vulnerable to attack,” says Annie McIntyre, president of Ardua Strategies.

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    Kickass on 08/23/2020 1:30 p.m. #

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