Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.10.0.1
Property, Plant and Equipment
 9 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
 
As of September 30, 2018 and December 31, 2017, property, plant and equipment, net consisted of the following (in millions):
 
 
September 30,
 
December 31,
 
 
2018
 
2017
LNG terminal costs
 
 
 
 
LNG terminal and interconnecting pipeline facilities
 
$
12,706

 
$
12,703

LNG terminal construction-in-process
 
3,757

 
3,310

Accumulated depreciation
 
(1,187
)
 
(880
)
Total LNG terminal costs, net
 
15,276

 
15,133

Fixed assets
 
 

 
 

Fixed assets
 
26

 
23

Accumulated depreciation
 
(20
)
 
(17
)
Total fixed assets, net
 
6

 
6

Property, plant and equipment, net
 
$
15,282

 
$
15,139

 

Depreciation expense was $104 million and $85 million during the three months ended September 30, 2018 and 2017, respectively, and $310 million and $233 million during the nine months ended September 30, 2018 and 2017, respectively.

We realized offsets to LNG terminal costs of $79 million and $242 million in the three and nine months ended September 30, 2017, respectively, that were related to the sale of commissioning cargoes because these amounts were earned or loaded prior to the start of commercial operations of the respective Train of the Liquefaction Project, during the testing phase for its construction. We did not realize any offsets to LNG terminal costs in the three and nine months ended September 30, 2018.