Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment, Net of Accumulated Depreciation (Tables)

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Property, Plant and Equipment, Net of Accumulated Depreciation (Tables)
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net of Accumulated Depreciation
As of December 31, 2021 and 2020, property, plant and equipment, net of accumulated depreciation consisted of the following (in millions):
December 31,
2021 2020
LNG terminal    
LNG terminal and interconnecting pipeline facilities $ 16,973  $ 16,908 
LNG terminal construction-in-process 2,746  2,154 
Accumulated depreciation (2,893) (2,344)
Total LNG terminal, net of accumulated depreciation 16,826  16,718 
Fixed assets    
Fixed assets 29  29 
Accumulated depreciation (25) (24)
Total fixed assets, net of accumulated depreciation 4  5 
Property, plant and equipment, net of accumulated depreciation $ 16,830  $ 16,723 
Schedule of Depreciation and Offsets to LNG Terminal Costs
The following table shows depreciation expense and offsets to LNG terminal costs during the years ended December 31, 2021, 2020 and 2019 (in millions):
Year Ended December 31,
2021 2020 2019
Depreciation expense $ 552  $ 547  $ 523 
Offsets to LNG terminal costs (1) 105  —  48 
(1)We recognize 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.
Property Plant and Equipment Estimated Useful Lives Table
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 6 and 50 years, as follows:
Components Useful life (years)
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
6-50
Other
10-30