Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment (Notes)

v2.4.0.8
Property, Plant and Equipment (Notes)
 9 Months Ended
Sep. 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):
 
 
September 30,
 
December 31,
 
 
2013
 
2012
LNG terminal costs
 
 
 
 
LNG terminal
 
$
2,224,364

 
$
2,224,230

LNG terminal construction-in-process
 
3,694,355

 
1,228,647

LNG site and related costs, net
 
150

 
156

Accumulated depreciation
 
(276,960
)
 
(234,349
)
Total LNG terminal costs, net
 
5,641,909

 
3,218,684

 
 
 
 
 
Fixed assets
 
 

 
 

Computer and office equipment
 
474

 
368

Vehicles
 
884

 
704

Machinery and equipment
 
1,490

 
1,473

Other
 
837

 
760

Accumulated depreciation
 
(2,722
)
 
(2,397
)
Total fixed assets, net
 
963

 
908

 
 
 
 
 
Property, plant and equipment, net
 
$
5,642,872

 
$
3,219,592

 
Depreciation expense related to the Sabine Pass LNG terminal totaled $14.4 million for each of the three months ended September 30, 2013 and 2012. Depreciation expense related to the Sabine Pass LNG terminal totaled $42.8 million for the nine months ended September 30, 2013 and 2012.

In June 2012, we began capitalizing costs associated with Train 1 and Train 2 of the Liquefaction Project, and in May 2013, we began capitalizing costs associated with Train 3 and Train 4 of the Liquefaction Project. For the three months ended September 30, 2013 and 2012, we capitalized $30.2 million and $14.0 million of interest expense related to the construction of the Liquefaction Project, respectively. For the nine months ended September 30, 2013 and 2012, we capitalized $125.0 million and $14.0 million of interest expense related to the construction of the Liquefaction Project, respectively.