Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment (Notes)

v2.4.0.8
Property, Plant and Equipment (Notes)
 6 Months Ended
Jun. 30, 2013
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
 
Property, plant and equipment consists of LNG terminal costs and fixed assets, as follows (in thousands):
 
 
June 30,
 
December 31,
 
 
2013
 
2012
LNG terminal costs
 
 
 
 
LNG terminal
 
$
2,224,392

 
$
2,224,230

LNG terminal construction-in-process
 
2,868,812

 
1,228,647

LNG site and related costs, net
 
152

 
156

Accumulated depreciation
 
(262,925
)
 
(234,349
)
Total LNG terminal costs, net
 
4,830,431

 
3,218,684

 
 
 
 
 
Fixed assets
 
 

 
 

Computer and office equipment
 
424

 
368

Vehicles
 
884

 
704

Machinery and equipment
 
1,471

 
1,473

Other
 
750

 
760

Accumulated depreciation
 
(2,609
)
 
(2,397
)
Total fixed assets, net
 
920

 
908

 
 
 
 
 
Property, plant and equipment, net
 
$
4,831,351

 
$
3,219,592

 
Depreciation expense related to the Sabine Pass LNG terminal totaled $14.2 million for each of the three months ended June 30, 2013 and 2012. Depreciation expense related to the Sabine Pass LNG terminal totaled $28.4 million for each of the six months ended June 30, 2013 and 2012.

In June 2012, we satisfied the criteria for capitalizing costs associated with Trains 1 and 2 of the Liquefaction Project, and in May 2013, we satisfied the criteria for capitalizing costs associated with Trains 3 and 4 of the Liquefaction Project. For the three and six months ended June 30, 2013, we capitalized $59.4 million and $94.7 million of interest expense related to the construction of the Liquefaction Project, respectively.