First systemic research conducted on application of blockchain technology in natural gas sector with participation of Azerbaijani scientist
31 August 2022

First systemic research conducted on application of blockchain technology in natural gas sector with participation of Azerbaijani scientist

Baku, August 31, AZERTAC An assistant professor of the Azerbaijan State University of Economics (UNEC), the chairman of the Natural Resources, Energy and Ecology Committee of the Parliament, Sadig Gurbanov, provided scientific organization of an article, “Tailored Blockchain Applications for the Natural Gas Industry: The Case Study of SOCAR, in the Energies magazine (Energies 2022, 15, 6010. https://doi.org/10.3390/en15166010), together with researchers of reputable universities from Turkiye and Russia. This magazine has CiteScore of Q1 for the scientific field of engineering and is included into the databases of the Scopus and Web of Science, which are recognized as the world’s most reputable international indexation systems, AZERTAC reports. The article is the first scientific and comprehensive research into the application of the blockchain technology in the natural gas sector. The article analyzes and evaluates the application of the blockchain technology in different sectors of the economy and the applicability of the blockchain system in the gas industry. It is scientifically proven in the research that the application of the blockchain technology will optimize data management, minimize operational costs, prevent wrong decisions and fraud and increase the quality of monitoring on maintenance. The introduction of the blockchain-based system in the natural gas industry allows for tracing processes from identification of gas leakages to transportation of natural gas. The research provides a broad analysis of the outcomes of the application of the blockchain-based system in SOCAR. It also investigated the advantages and risks of the blockchain application in one of the leading companies in the area of natural gas, SOCAR, via interviews (several managers in the structure of SOCAR participated) and surveys. The notions, experience and expectations provided by the SOCAR leadership were used in the article. It was identified that specialists from the gas industry do not unambiguously accept views on the blockchain application in the natural gas industry, as approaches and thoughts are largely different. It was proven in the research that the blockchain application will pave the way for the transparency of highly ensured traceability, better audit quality, automatic discovery of leakage of natural gas, tracing of parties which do not fulfil their commitments and accuracy of compliance with the implementation of trade contracts. Also, the research identified potential areas of use of blockchain in SOCAR and showed the problems and risks of the blockchain application, as well as ways of their solution. The Energies is an influential international publication covering scientific researches in the areas of energy policy, technology, engineering and administration. The Energies is included into the databases of the Scopus and Web of Science, which are recognized as the world’s most reputable international indexation systems, and has CiteScore of Q1 (engineering).