Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

Property, Plant and Equipment
12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment PROPERTY, PLANT AND EQUIPMENT
As of December 31, 2020 and 2019, property, plant and equipment, net consisted of the following (in millions):
December 31,
2020 2019
LNG terminal costs    
LNG terminal and interconnecting pipeline facilities $ 16,908  $ 16,894 
LNG terminal construction-in-process 2,154  1,275 
Accumulated depreciation (2,344) (1,807)
Total LNG terminal costs, net 16,718  16,362 
Fixed assets    
Fixed assets 29  27 
Accumulated depreciation (24) (21)
Total fixed assets, net
Property, plant and equipment, net $ 16,723  $ 16,368 
The following table shows depreciation expense and offsets to LNG terminal costs during the years ended December 31, 2020, 2019 and 2018 (in millions):
Year Ended December 31,
2020 2019 2018
Depreciation expense $ 547  $ 523  $ 413 
Offsets to LNG terminal costs (1) —  48  94 
(1)    We realize offsets to LNG terminal costs 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.

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 have depreciable lives between 7 and 50 years, as follows:
Components Useful life (yrs)
LNG storage tanks 50
Natural gas pipeline facilities 40
Marine berth, electrical, facility and roads 35
Water pipelines 30
Regasification processing equipment 30
Sendout pumps 20
Liquefaction processing equipment

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.