Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.8.0.1
Property, Plant and Equipment
 9 Months Ended
Sep. 30, 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):
 
 
September 30,
 
December 31,
 
 
2017
 
2016
LNG terminal costs
 
 
 
 
LNG terminal
 
$
10,554

 
$
7,976

LNG terminal construction-in-process
 
5,320

 
6,728

Accumulated depreciation
 
(783
)
 
(553
)
Total LNG terminal costs, net
 
15,091

 
14,151

Fixed assets
 
 

 
 

Fixed assets
 
22

 
20

Accumulated depreciation
 
(16
)
 
(13
)
Total fixed assets, net
 
6

 
7

Property, plant and equipment, net
 
$
15,097

 
$
14,158

 

Depreciation expense was $85 million and $42 million in the three months ended September 30, 2017 and 2016, respectively, and $233 million and $86 million in the nine months ended September 30, 2017 and 2016, respectively.

We realized offsets to LNG terminal costs of $79 million and $59 million in the three months ended September 30, 2017 and 2016, respectively, and $242 million and $201 million in the nine months ended September 30, 2017 and 2016, 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.