Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v2.4.0.6
Property, Plant and Equipment
 9 Months Ended
Sep. 30, 2012
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Property, Plant and Equipment

Property, plant and equipment consists of liquefied natural gas ("LNG") terminal costs and fixed assets, as follows (in thousands):
 
September 30,
 
December 31,
 
2012
 
2011
LNG terminal costs
 
 
 
LNG terminal
$
1,641,581

 
$
1,637,724

LNG terminal construction-in-process
927,665

 
286

LNG site and related costs, net
158

 
163

Accumulated depreciation
(155,989
)
 
(124,409
)
Total LNG terminal costs, net
2,413,415

 
1,513,764

 
 
 
 
Fixed assets
 
 
 
Computers and office equipment
336

 
227

Vehicles
496

 
416

Machinery and equipment
1,416

 
1,068

Other
631

 
916

Accumulated depreciation
(2,291
)
 
(1,975
)
Total fixed assets, net
588

 
652

Property, plant and equipment, net
$
2,414,003

 
$
1,514,416


 
Depreciation expense related to the Sabine Pass LNG terminal totaled $10.6 million and $10.7 million for the three months ended September 30, 2012 and 2011, respectively. Depreciation expense related to the Sabine Pass LNG terminal totaled $31.6 million and $32.0 million for the nine months ended September 30, 2012 and 2011, respectively.

In June 2012, LNG trains 1 and 2 of the liquefaction facilities we are developing and constructing adjacent to the Sabine Pass LNG terminal (the "Liquefaction Project") satisfied the criteria for capitalization. Accordingly, costs associated with the construction of LNG trains 1 and 2 of the Liquefaction Project have been recorded as construction-in-process since that date. For the three and nine months ended September 30, 2012, we capitalized $14.0 million of interest expense related to the construction of LNG trains 1 and 2 of the Liquefaction Project.