BG Group has announced the sale of $1.93 billion worth of holdings in the Queensland Curtis Liquefied Natural Gas (QCLNG) project to China National Offshore Oil Corporation (CNOOC).

“These agreements extend our strong relationship with CNOOC, which spans not only LNG but also exploration offshore China and production in the UK Continental Shelf through participation in the large Buzzard oil field,” BG’s Chief Executive Chris Finlayson said.

An initial off-take agreement in 2010 between BG Group and CNOOC, of 3.6 million tonnes a year for 20 years from 2014, remains Australia's largest LNG contract between two single companies.

Federal Minister for Resources and Energy, Gary Gray, welcomed the announcement, saying it reaffirms Australia as a leader in the hydrocarbon export sector.

"Ours is a mutually beneficial partnership. China is the world's fastest growing energy market, with huge demand for LNG, at the same time as Australia is poised to become one of the world's top two LNG exporters,” Mr Gray said.

"The future of LNG production is in Australia and today's agreement demonstrates we are increasing our capabilities in LNG construction and operation through a focus on innovation and the right approach from government and industry."