China has approved China National Offshore Oil Corp's liquefied natural gas project in southern Hainan Province, which will help meet rising demand for the cleaner-burning fuel.

The National Development and Reform Commission, the country's top economic planner, gave the final approval on July 7, the State-owned Assets Supervision and Administration Commission said in a statement dated Monday on its website.

The first phase of the terminal will receive 2 million tons of the super-cooled gas annually. Two storage tanks of 160,000 cubic meters each will also be built.

The terminal may come on stream in 2014 and reach its designed capacity in 2016, according to SASAC.