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China National Offshore Oil Corporation (CNOOC), the country's largest offshore oil producer by output, announced on Monday that its overseas liquefied natural gas (LNG) supply base has started operation.

The Queensland Curtis LNG project in Australia is expected to secure an annual supply of 3.6 million tons of LNG for China for 20 years. Proven and explorable reserves in the base total 350 billion cubic meters.

The company hailed the project as having "milestone significance" in enhancing China's position in the global LNG industry.

CNOOC signed LNG agreements with BG Group to purchase interests in the Queensland Curtis LNG project in Australia in 2010 and 2013.

Currently, CNOOC has seven LNG receiving terminals in operation in China's coastal regions, with annual receiving capacity of 25 million tons.

China's appetite for natural gas has grown substantially with industrialization and urbanization initiatives to cut emissions.

So far, China has imported 70 million total tons of LNG.