Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.7.0.1
Property, Plant and Equipment
 3 Months Ended
Mar. 31, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
 
Property, plant and equipment, net consists of LNG terminal costs and fixed assets, as follows (in millions):
 
 
March 31,
 
December 31,
 
 
2017
 
2016
LNG terminal costs
 
 
 
 
LNG terminal
 
$
10,420

 
$
7,976

LNG terminal construction-in-process
 
4,826

 
6,728

Accumulated depreciation
 
(616
)
 
(553
)
Total LNG terminal costs, net
 
14,630

 
14,151

Fixed assets
 
 

 
 

Fixed assets
 
20

 
20

Accumulated depreciation
 
(14
)
 
(13
)
Total fixed assets, net
 
6

 
7

Property, plant and equipment, net
 
$
14,636

 
$
14,158

 

Depreciation expense during the three months ended March 31, 2017 and 2016 was $64 million and $18 million, respectively.

During the three months ended March 31, 2017 and 2016, we realized offsets to LNG terminal costs of $124 million and $14 million, respectively, that were related to the sale of commissioning cargoes because these amounts were earned prior to the start of commercial operations, during the testing phase for the construction of the Liquefaction Project.