On May 24, 2017, TMX Group announced the development of a blockchain-based prototype that enables the transfer of natural gas. The project was the result of a partnership between Natural Gas Exchange (NGX), TMX’s wholly-owned subsidiary and a leading North American energy exchange, and Nuco Inc., a digital infrastructure provider.
Steve Lappin, NGX President and CEO, stated, "This exciting new prototype is designed to more accurately and efficiently track activity and provide clients with valuable analytics on natural gas movements, while preserving the confidentiality and integrity of the data." He further elaborated, "NGX is committed to seeking out new ways to improve the client experience throughout the transaction delivery and settlement process, from production to end user, to drive growth in our business."
The prototype seeks to improve the tracking of natural gas flow from a variety of delivery locations within the United States. As a result, the NGX natural gas settlement process will be optimized and streamlined as clients will be able to track gas movement across different locations and submit more accurate reports. These features enable the prototype to enhance delivery and payment processing, mitigate risks, and provide secure transaction data.
Shane Quinn, Senior Manager of Communications and Public Affairs at TMX, told ETHNews that the developers experimented with a number of blockchain protocols for the prototype, but the latest implementation is deployed on the Ethereum blockchain.
“In our overall innovation strategy, TMX is taking a diversified approach and examining multiple platforms. In the use cases that we have explored to this point, we have used Hyperledger (Liquidity Alliance, Voting proxy prototype) and Ethereum (today's announced energy prototype).”
Quinn also explained why TMX partnered with the newly formed blockchain startup Nuco:
“TMX is new to this realm. We chose to work with Nuco because they are a creative, ambitious young company with the necessary agility to quickly develop and deliver effective prototypes.”