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Tailored Blockchain Applications for the Natural Gas Industry: The Case Study of SOCAR

Author

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  • Cemal Zehir

    (Department of Business Administration, Yildiz Technical University, Istanbul 34220, Turkey
    Center for Islamic Finance, Azerbaijan State University of Economics (UNEC), Baku AZ 1001, Azerbaijan)

  • Melike Zehir

    (Center for Islamic Finance, Azerbaijan State University of Economics (UNEC), Baku AZ 1001, Azerbaijan
    Graduate School of Social Sciences, Yildiz Technical University, Istanbul 34220, Turkey)

  • Alex Borodin

    (Center for Islamic Finance, Azerbaijan State University of Economics (UNEC), Baku AZ 1001, Azerbaijan
    Department of Finance of Sustainable Development, Plekhanov Russian University of Economics, 117997 Moscow, Russia)

  • Zahid Farrukh Mamedov

    (Center for Islamic Finance, Azerbaijan State University of Economics (UNEC), Baku AZ 1001, Azerbaijan)

  • Sadiq Qurbanov

    (Center for Islamic Finance, Azerbaijan State University of Economics (UNEC), Baku AZ 1001, Azerbaijan)

Abstract

Blockchain technology has emerging areas of deployment in diverse sectors and use cases. In this study, several potential application areas of blockchain with promising benefits have been identified in the natural gas industry. There is no single solution that can address different challenges and meet disparate requirements. Therefore, it is important to understand the needs of the natural gas industry and propose appropriate blockchain solutions. Moreover, in the literature, there is a lack of detailed case studies involving industrial experts from the natural gas sector. Expert opinion can be useful for prioritizing the most needed or expected blockchain application areas among several options. By considering privacy, authentication, speed, security, energy consumption, and costs, suitable blockchain types and consensus mechanisms can be determined. This study presents one of the first detailed case studies for tailored applications of blockchain in the natural gas industry. Through a two-staged semi-structured interview with executives from SOCAR Azerbaijan, the most important blockchain application areas and operational requirements were identified. Furthermore, the most suitable blockchain solutions that can address application-specific conditions and needs were determined. This study both, develops a replicable and reliable methodology to conduct detailed blockchain implementation case studies in the natural gas industry and various other sectors, and provides detailed insights into the primary application areas, operational expectations–requirements, and implementation challenges specific to each application.

Suggested Citation

  • Cemal Zehir & Melike Zehir & Alex Borodin & Zahid Farrukh Mamedov & Sadiq Qurbanov, 2022. "Tailored Blockchain Applications for the Natural Gas Industry: The Case Study of SOCAR," Energies, MDPI, vol. 15(16), pages 1-19, August.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:16:p:6010-:d:892315
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    References listed on IDEAS

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    1. Ahmad, Raja Wasim & Salah, Khaled & Jayaraman, Raja & Yaqoob, Ibrar & Omar, Mohammed, 2022. "Blockchain in oil and gas industry: Applications, challenges, and future trends," Technology in Society, Elsevier, vol. 68(C).
    2. Alex Borodin & Galina Panaedova & Svetlana Frumina & Aidyn Kairbekuly & Natalia Shchegolevatykh, 2021. "Modeling the Business Environment of an Energy Holding in the Formation of a Financial Strategy," Energies, MDPI, vol. 14(23), pages 1-18, December.
    3. Yan, Mingyu & Gan, Wei & Zhou, Yue & Wen, Jianfeng & Yao, Wei, 2022. "Projection method for blockchain-enabled non-iterative decentralized management in integrated natural gas-electric systems and its application in digital twin modelling," Applied Energy, Elsevier, vol. 311(C).
    4. Fangyuan Zhao & Wai Kin (Victor) Chan, 2020. "When Is Blockchain Worth It? A Case Study of Carbon Trading," Energies, MDPI, vol. 13(8), pages 1-28, April.
    5. Erik Karger & Marvin Jagals & Frederik Ahlemann, 2021. "Blockchain for Smart Mobility—Literature Review and Future Research Agenda," Sustainability, MDPI, vol. 13(23), pages 1-32, November.
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    Cited by:

    1. Yuliya Tyurina & Svetlana Frumina & Svetlana Demidova & Aidyn Kairbekuly & Maria Kakaulina, 2023. "Estimation of Tax Expenditures Stimulating the Energy Sector Development and the Use of Alternative Energy Sources in OECD Countries," Energies, MDPI, vol. 16(6), pages 1-17, March.
    2. Elena Fedchenko & Lyubov Gusarova & Timur Timkin & Natalie Gryzunova & Michał Bilczak & Svetlana Frumina, 2023. "Methodology for an Audit of Institutional Projects in the Energy Sector," Energies, MDPI, vol. 16(8), pages 1-16, April.
    3. Cemal Zehir & Melike Zehir, 2022. "Emerging blockchain solutions in the mobility ecosystem: Associated risks and areas for applications," Bussecon Review of Social Sciences (2687-2285), Bussecon International Academy, vol. 4(2), pages 01-14, April.
    4. Aleksandra Leschinskaya & Oksana Kirillova & Maksim Palyanov, 2023. "Assessment of the Formation of the Economic Effect of Cross-Subsidization in the Electric Power Industry," Energies, MDPI, vol. 16(16), pages 1-13, August.

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