Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.19.3
Property, Plant and Equipment
 9 Months Ended
Sep. 30, 2019
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment PROPERTY, PLANT AND EQUIPMENT
 
As of September 30, 2019 and December 31, 2018, property, plant and equipment, net consisted of the following (in millions):
 
 
September 30,
 
December 31,
 
 
2019
 
2018
LNG terminal costs
 
 
 
 
LNG terminal and interconnecting pipeline facilities
 
$
16,807

 
$
12,760

LNG terminal construction-in-process
 
1,196

 
3,913

Accumulated depreciation
 
(1,671
)
 
(1,290
)
Total LNG terminal costs, net
 
16,332

 
15,383

Fixed assets
 
 

 
 

Fixed assets
 
26

 
26

Accumulated depreciation
 
(20
)
 
(19
)
Total fixed assets, net
 
6

 
7

Property, plant and equipment, net
 
$
16,338

 
$
15,390

 

Depreciation expense was $136 million and $104 million during the three months ended September 30, 2019 and 2018, respectively, and $386 million and $310 million during the nine months ended September 30, 2019 and 2018, respectively.

We realized offsets to LNG terminal costs of $48 million during the nine months ended September 30, 2019 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 Trains of the Liquefaction Project, during the testing phase for its construction. We did not realize any offsets to LNG terminal costs during the three months ended September 30, 2019 and in the three and nine months ended September 30, 2018.