Sichuan-Chongqing Accelerate Joint Development of 100-Billion-Cubic-Meter "Gas Giant"; Upgraded Drilling and Production Technologies Drive New Demand
With the first cooperation agreement signed between the energy authorities of Sichuan and Chongqing, the goal of establishing the Sichuan Basin as China's largest natural gas production base has entered full implementation. In 2020, the Development and Reform Commissions and Energy Bureaus of Chongqing and Sichuan jointly signed the "Cooperation Agreement on Promoting High-Quality Integrated Development of Energy in the Chengdu-Chongqing Twin City Economic Circle," marking a key step forward in cross-regional energy collaboration.
Near 1 trillion yuan investment deployment; 100 billion yuan production capacity target anchored at 2035
Per the agreement, Sichuan and Chongqing will jointly invest approximately 9900 billion yuan to advance 20 major energy projects across energy networks, supply security, and storage/regulation. Of this, 7100 billion yuan is earmarked for large-scale natural gas development, with plans to establish a trillion-cubic-meter-level natural gas production base in the Sichuan Basin by 2035.
From a resource perspective, the Sichuan Basin holds total natural gas reserves of up to 38.84 trillion cubic meters, with a discovery rate of less than 10%, indicating immense exploration and development potential. Currently, the Sichuan-Chongqing region accounts for nearly 30% of China's annual natural gas production. Production is projected to exceed 630 billion cubic meters in 2025, laying a solid foundation for the 2035 trillion cubic meter vision.
Deep and ultra-deep drilling becomes the main battleground; challenges in complex formations escalate.
As exploration and development in the Sichuan Basin advance deeper, deep and ultra-deep zones have become key targets for capacity construction. In 2025 year 10 month, the Shendi Chuankel No.1 well, deployed by PetroChina Southwest Oil & Gas Field, broke through a drilling depth of 10000 meters, reaching Sinian strata from 4 billion years ago and marking the first entry into the "unexplored zone" of the Sichuan Basin's deep interior.
However, ultra-deep drilling faces extreme challenges: underground temperatures exceeding 200°C reduce the strength of metal drill tools; formation pressures surpass 130 MPa; and depths below 7000 meters enter uncharted formations, making drilling akin to "blind operation." Ultra-deep drilling and completion face complex engineering hurdles, including more complicated formation conditions and harsher wellbore environments. Prominent pain points include rapid bit wear and low rock-breaking efficiency. Overcoming these world-class challenges in efficient rock breaking and drill tool safety requires high-precision drilling equipment and advanced technologies.
Guilin Zhongke Jinzuan: Specialized in Complex Formation Drilling Solutions
Against the backdrop of accelerating trillion-cubic-meter capacity construction in the Sichuan Basin and surging demand for drilling through deep, complex formations, Guilin Zhongke Jinduan Material Technology Co., Ltd. (hereinafter "Guilin Zhongke Jinduan") is perfectly aligned with core industry needs.
Founded in 2023 6, the company is registered in Xiangshan District, Guilin City, Guangxi Zhuang Autonomous Region. It is a technology enterprise specializing in new material technology promotion, metal tool manufacturing, and the production and sales of specialized geological exploration equipment. Its business scope covers non-metallic mineral product manufacturing and specialized geological exploration equipment manufacturing, with a focus on technological breakthroughs in complex formation drilling.
Notably, Guilin Zhongke Jinzhuang focuses on the R&D, manufacturing, and sales of high-end diamond drilling bits, specializing in complex formation drilling. Leveraging its core DMC composite drilling technology, the company integrates advanced systems including isomorphous composite wear-resistant metallurgy, concave-convex drag-reducing efficient rock breaking, and high-temperature/high-pressure capabilities. These technologies align closely with the engineering demands of ultra-deep well drilling and completion in the Sichuan Basin, particularly regarding efficient rock breaking and enhanced bit durability.
As the Sichuan-Chongqing 100-billion-cubic-meter capacity base construction enters a 15-year strategic cycle, natural gas development investment during the "14th Five-Year Plan" period alone reached 2700 billion yuan. With continuous growth in deep and ultra-deep well drilling, the market size for drilling and completion engineering continues to expand. Guilin Zhongke Jinzhuan is poised to leverage its expertise in complex formation drilling to provide technical support to oil and gas exploration companies, enhancing drilling efficiency and reducing overall costs.
Full-chain collaboration: the time has come to upgrade drilling technology.
Industry data shows that advanced ultra-deep drilling technology in the Sichuan Basin has made drilling depths exceeding 9000 meters a reality, with key technologies enabling efficient exploration and development of ultra-deep oil and gas resources. From planning to real-world operations at depths of over 10,000 meters, the Sichuan Basin is accelerating construction of China's first 100-billion-cubic-meter natural gas production base. As drilling extends into deeper and more complex formations, high-performance drilling tools and solutions for challenging geology will become increasingly critical, creating new growth opportunities for companies across the supply chain.