|
LNG inventory and LNG inventory-affiliate
|
12 Months Ended |
|---|---|
|
Dec. 31, 2011
|
|
| LNG INVENTORY AND LNG INVENTORY—AFFILIATE [Abstract] | |
| Inventory Disclosure [Text Block] |
LNG INVENTORY AND LNG INVENTORY—AFFILIATE
LNG inventory and LNG inventory—affiliate are recorded at cost and are subject to lower of cost or market ("LCM") adjustments at the end of each period. LNG inventory—affiliate represents LNG inventory purchased under a related party LNG lease agreement with Cheniere Marketing, LLC ("Cheniere Marketing"), a wholly owned subsidiary of Cheniere, as described in Note 13—"Related Party Transactions". LNG inventory cost is determined using the average cost method. Recoveries of losses resulting from interim period LCM adjustments are recorded when market price recoveries occur on the same inventory in the same fiscal year. These recoveries are recognized as gains in later interim periods with such gains not exceeding previously recognized losses.
As of December 31, 2011 and 2010, we had $0.5 million and $1.2 million, respectively, of LNG inventory on our Consolidated Balance Sheets. During the years ended December 31, 2011, 2010 and 2009, we recognized $0.4 million, $0.3 million and zero, respectively, as a result of LCM adjustments to our LNG inventory.
As of December 31, 2011 and 2010, we had $4.4 million and zero, respectively, of LNG inventory—affiliate on our Consolidated Balance Sheets. During the years ended December 31, 2011, 2010 and 2009, we recognized $10.6 million, zero and zero, respectively, as a result of LCM adjustments to our LNG inventory—affiliate.
|