Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment, Net of Accumulated Depreciation

v3.22.4
Property, Plant and Equipment, Net of Accumulated Depreciation
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net of Accumulated Depreciation PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
 
Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions):
December 31,
2022 2021
LNG terminal    
Terminal and interconnecting pipeline facilities $ 20,072  $ 16,973 
Construction-in-process 140  2,746 
Accumulated depreciation (3,512) (2,893)
Total LNG terminal, net of accumulated depreciation 16,700  16,826 
Fixed assets    
Fixed assets 29  29 
Accumulated depreciation (25) (25)
Total fixed assets, net of accumulated depreciation 4  4 
Assets under finance leases
Tug vessels 23  — 
Accumulated depreciation (2) — 
Total assets under finance lease, net of accumulated depreciation 21  — 
Property, plant and equipment, net of accumulated depreciation $ 16,725  $ 16,830 
The following table shows depreciation expense and offsets to LNG terminal costs (in millions):
Year Ended December 31,
2022 2021 2020
Depreciation expense $ 630  $ 552  $ 547 
Offsets to LNG terminal costs (1) 148  105  — 
(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.
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 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

Fixed Assets

Our fixed assets are recorded at cost and are depreciated on a straight-line method based on estimated lives of the individual assets or groups of assets.

Assets under Finance Lease

Our assets under finance lease consists of certain tug vessels that meet the classification of a finance lease. These assets are depreciated on a straight-line method over the respective lease term. See Note 12—Leases for additional details of our finance leases.