Property, Plant and Equipment
|12 Months Ended|
Dec. 31, 2018
|Property, Plant and Equipment [Abstract]|
|Property, Plant and Equipment||
PROPERTY, PLANT AND EQUIPMENT
As of December 31, 2018 and 2017, property, plant and equipment, net consisted of the following (in millions):
Depreciation expense was $413 million, $331 million and $148 million during the years ended December 31, 2018, 2017 and 2016, respectively.
We realize offsets to LNG terminal costs for sales of commissioning cargoes that were earned or loaded prior to the start of commercial operations of the respective Train during the testing phase for its construction. We realized offsets to LNG terminal costs of $94 million, $301 million and $201 million in the years ended December 31, 2018, 2017 and 2016, respectively, for sales of commissioning cargoes from the Liquefaction Project.
LNG Terminal Costs
The Sabine Pass LNG terminal is depreciated using the straight-line depreciation method applied to groups of LNG terminal assets with varying useful lives. The identifiable components of the Sabine Pass LNG terminal with similar estimated useful lives have a depreciable range between 6 and 50 years, as follows:
Fixed Assets and Other
Our fixed assets and other are recorded at cost and are depreciated on a straight-line method based on estimated lives of the individual assets or groups of assets.
The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef