Kunlun Energy has started construction of China's largest liquefaction plant.

The PetroChina spin-off's 600,000 tonnes per annum project at Tai'an, Shandong province, will begin operations in 2013.

The inland facility is expected to cost 1.5 billion yuan ($238 million), Reuters reported.

It will only temporarily hold the title of China's biggest liquefaction facility, as a planned unit in Huanggang, Hubei province, will have double its capacity.