Shanghai Gas-VeChain partnership enters phase 2, VET/USD falls for third straight day

• Shanghai Gas had partnered with VeChain blockchain in April. 
• The companies are now entering the second phase of their collaboration.
• The second phase will identify new financial opportunities in the energy sector.

Back in April, the VeChain Foundation and the Shanghai Gas (Group) Co. Ltd had joined forces to establish an “energy-as-service” ecosystem. Four months after the partnership announcement, the companies have now entered the second phase of the energy giant’s digitization drive.

Shanghai Gas is a dominant gas player in China and controls more than 90% of the market share in the city. In terms of customer size and transportation capacity, it is also the largest supplier in mainland China. In the first phase of the collaboration, Shangai Gas stored the LNG delivery information and storage facility information on the VeChainThor blockchain. 

The second phase will investigate the feasibility study of VeChain Thor integration, research of logistic management, promotion and trading of energy. Additionally, the partnership will be used to identify new financial opportunities in the energy sector. 

The VeChain Foundation and Shanghai Gas have a shared goal of optimizing the latter’s grid operation. This will be done by leveraging the benefits of VeChain’s blockchain to come up with solutions devised for operational efficiency. By pivoting operations to the blockchain, the gas giant can automate key departments, especially logistic management and energy trading.

VET/USD daily chart

VET/USD bears took control for the third straight day as prices dropped to $0.o1965. The price is currently resting right on top of the upward trending line. The MACD shows that market momentum is on the verge of reversing from bullish to bearish.

VET/USD has one strong resistance at $0.022. On the downside, we have healthy support levels at $0.0187, $0.0182 (SMA 20), $0.0172 and $0.0162 (SMA 50).