Breaking News: Wankai New Materials' Parent Company Zhink Group Successfully Secures Oil and Gas Exploration Rights in Sichuan Basin

On December 12, 2025, Zhejiang Zhink Group Co., Ltd., the parent company of Wankai New Materials, successfully won the exploration rights for the “Wanyuan North Block Oil and Gas Prospect in the Sichuan Basin, Sichuan Province.” This marks the first time in the history of the Sichuan–Chongqing region that a private enterprise has obtained oil and gas exploration rights. Recently, Zhink Group officially signed the exploration rights transfer contract with the Ministry of Natural Resources of the People's Republic of China.

The Wanyuan North Block is mainly located in Wanyuan City, Dazhou, Sichuan Province, covering an area of approximately 509 square kilometers. According to preliminary assessments by professional institutions, the block is estimated to contain around 227.9 billion cubic meters of natural gas resources (subject to actual exploration results).

Natural gas resources in northeastern Sichuan are generally characterized by high sulfur content. In recent years, driven by rapid demand growth from industries such as lithium iron phosphate batteries and fertilizers, domestic sulfur prices have risen to approximately RMB 4,000 per ton, significantly enhancing the strategic and economic value of high-sulfur natural gas.

High-sulfur natural gas is a resource type with both strategic importance and strong commercial potential. The successful acquisition of this block represents a critical milestone in Zhink Group's strategic positioning in southwestern China's natural gas sector, laying a solid upstream resource foundation for the group's natural gas industry development and carrying landmark significance for the natural gas chemical industry chain in the Sichuan–Chongqing region.

Importantly, natural gas is a core feedstock in the petrochemical industry. Through reforming and synthesis processes, natural gas can be converted into syngas, methanol, and further into ethylene oxide, which is the key intermediate for producing monoethylene glycol (MEG)—one of the two principal raw materials for polyethylene terephthalate (PET). MEG is essential for manufacturing PET resin, polyester fibers, and packaging materials. Therefore, the strategic development of natural gas resources will help strengthen the upstream supply security of MEG, further supporting the sustainable and integrated development of the PET and polyester industry chain.