TMX Group (TSX: X) announced the development of a blockchain-based prototype to power a new service offering from Natural Gas Exchange (NGX), a North American energy exchange and a wholly-owned subsidiary of TMX Group.
NGX collaborated with Nuco Inc. (Nuco), a digital infrastructure provider, to build a new system using Distributed Ledger Technology (DLT) to improve the tracking of natural gas flows at delivery locations in the United States. The prototype is designed to optimize the NGX natural gas settlement process for clients by providing a transparent view of gas movements across locations and enabling participants to more accurately report their positions. The NGX use case for the prototype also has the potential to enhance delivery and payment processing, mitigate the risk of, and expedite remediation of, supply shortfalls, and provide secure transactional data.
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,” said Steve Lappin, President and CEO, NGX. “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.
TMX’s digital strategy forges on in pursuit of tangible business applications for emerging technologies across our diverse enterprise,” said John Lee, Vice-President, Innovation and Enterprise Delivery, TMX Group. “We gained valuable experience working with Nuco to leverage their DLT capabilities in deploying a customized solution for NGX’s business. The ability to efficiently develop and produce innovative prototypes will prove to be a differentiator for TMX as we strive to deliver new, transformative solutions for our clients.
Nuco’s CEO Matthew Spoke believes this is a great step forward for Nuco:
As the leading provider of blockchain technology in Canada, Nuco is proud to work with the TMX Group in implementing their digital strategy and to create the foundation of a new digital economy in Canada and around the world.