Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v2.4.0.6
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2012
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure
Property, Plant and Equipment

Property, plant and equipment consists of liquefied natural gas ("LNG") terminal costs and fixed assets, as follows (in thousands):
 
June 30,
 
December 31,
 
2012
 
2011
LNG terminal costs
 
 
 
LNG terminal
$
1,639,922

 
$
1,637,724

LNG terminal construction-in-process
45,618

 
286

LNG site and related costs, net
159

 
163

Accumulated depreciation
(145,436
)
 
(124,409
)
Total LNG terminal costs, net
1,540,263

 
1,513,764

 
 
 
 
Fixed assets
 
 
 
Computers and office equipment
278

 
227

Vehicles
496

 
416

Machinery and equipment
1,416

 
1,068

Other
613

 
916

Accumulated depreciation
(2,192
)
 
(1,975
)
Total fixed assets, net
611

 
652

Property, plant and equipment, net
$
1,540,874

 
$
1,514,416


 
Depreciation expense related to the Sabine Pass LNG terminal totaled $10.5 million and $10.6 million for the three months ended June 30, 2012 and 2011, respectively. Depreciation expense related to the Sabine Pass LNG terminal totaled $21.0 million and $21.3 million for the six months ended June 30, 2012 and 2011, respectively.

In June 2012, our liquefaction project satisfied the criteria for capitalization. Accordingly, costs associated with the construction of the liquefaction facilities have been recorded as construction-in-process since that date.