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

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Zehir C., Zehir M., Borodin A., Mamedov Z. F. , Qurbanov S.

ENERGIES, vol.15, no.16, 2022 (Peer-Reviewed Journal) identifier

  • Publication Type: Article / Article
  • Volume: 15 Issue: 16
  • Publication Date: 2022
  • Doi Number: 10.3390/en15166010
  • Journal Name: ENERGIES
  • Journal Indexes: Science Citation Index Expanded, Scopus, Academic Search Premier, Aerospace Database, CAB Abstracts, Communication Abstracts, Compendex, INSPEC, Metadex, Veterinary Science Database, Directory of Open Access Journals, Civil Engineering Abstracts
  • Keywords: blockchain, case study, internet of things (IoT), natural gas, engineering, MANAGEMENT SCHEME, CHALLENGES, OIL


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.