Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Fair Value of Derivative Assets and Liabilities

The following table (in thousands) shows the fair value of our derivative assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2014 and 2013, which are classified as prepaid expenses and other, non-current derivative assets and other current liabilities in our Consolidated Balance Sheets.

	Fair Value Measurements as of
	December 31, 2014										December 31, 2013
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
LNG Inventory Derivatives asset (liability)	$	—	$	1,216		$	—	$	1,216		$	—	$	(161	)	$	—	$	(161	)
Fuel Derivatives asset	—		—			—		—			—		27			—		27
Term Gas Supply Derivatives asset	—		—			342		342			—		—			—		—
Interest Rate Derivatives asset (liability)	—		(12,036		)	—		(12,036		)	—		84,639			—		84,639

Fair Value Measurements, Sensitivity to Changes in Significant Unobservable Inputs for Level 3

The following table (in thousands, except natural gas basis spread) includes quantitative information for the unobservable inputs as of December 31, 2014:

	Net Fair Value Asset	Valuation Technique	Significant Unobservable Input	Significant Unobservable Inputs Range
Term Gas Supply Derivatives	$342	Basis Spread plus Liquid Location	Basis Spread	$ (0.350) - $0.035

Fair Value of Derivative Instruments by Balance Sheet Location

The following table (in thousands) shows the fair value and location of our Commodity Derivatives on our Consolidated Balance Sheets:

		Fair Value Measurements as of
	Balance Sheet Location	December 31, 2014			December 31, 2013
LNG Inventory Derivatives asset (liability)	Prepaid expenses and other	$	1,216		$	(161	)
Fuel Derivatives asset	Prepaid expenses and other	—			27
Term Gas Supply Derivatives asset	Prepaid expenses and other	76			—
Term Gas Supply Derivatives asset	Non-current derivative assets	586			—
Term Gas Supply Derivatives liability	Other current liabilities	(53		)	—
Term Gas Supply Derivatives liability	Other non-current liabilities	(267		)	—

Derivative Instruments, Gain (Loss)

The following table (in thousands) shows the changes in the fair value and settlements and location of our Commodity Derivatives recorded on our Consolidated Statements of Operations during the years ended December 31, 2014, 2013 and 2012:

		Year Ended December 31,
	Income Statement Location	2014			2013			2012
LNG Inventory Derivatives gain (loss)	Revenues	$	(31	)	$	(463	)	$	1,036
LNG Inventory Derivatives gain	Derivative gain (loss), net	1,108			476			—
Fuel Derivatives gain (loss) (1)	Derivative gain (loss), net	281			181			(622		)
Term Gas Supply Derivatives gain (2)	Operating and maintenance expense	342			—			—

(1) Excludes settlements of hedges of the exposure to price risk attributable to future purchases of natural gas to be utilized as fuel to operate the Sabine Pass LNG terminal for which Sabine Pass LNG has elected the normal purchase normal sale exception from derivative accounting and has recorded as operating and maintenance expense.

(2) There were no settlements during the reporting period.

Schedule of Notional Amounts of Outstanding Derivative Positions

At December 31, 2014, Sabine Pass Liquefaction had the following Interest Rate Derivatives outstanding:

	Initial Notional Amount	Maximum Notional Amount	Effective Date	Maturity Date	Weighted Average Fixed Interest Rate Paid	Variable Interest Rate Received
Interest Rate Derivatives - Not Designated	$20.0 million	$2.5 billion	August 14, 2012	July 31, 2019	1.98%	One-month LIBOR

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table (in thousands) details the effect of our Interest Rate Derivatives included in Other Comprehensive Income (“OCI”) and AOCI for the years ended December 31, 2014, 2013 and 2012:

	Gain (Loss) in OCI			Gain (Loss) Reclassified from AOCI into Interest Expense (Effective Portion)		Losses Reclassified into Earnings as a Result of Discontinuance of Cash Flow Hedge Accounting
December 31, 2012
Interest Rate Derivatives - Designated	$	(21,290	)	$	—	$	—
Interest Rate Derivatives - De-designated	(5,814		)	—		—
Interest Rate Derivatives - Settlements	(136		)	—		—
December 31, 2013
Interest Rate Derivatives - Designated	21,297			—		—
Interest Rate Derivatives - De-designated	—			—		5,807
Interest Rate Derivatives - Settlements	(30		)	—		166
December 31, 2014
Interest Rate Derivatives - Designated	—			—		—
Interest Rate Derivatives - De-designated	—			—		—
Interest Rate Derivatives - Settlements	—			—		—

Derivative Gross Presentation on Consolidated Balance Sheets

The following table (in thousands) shows the fair value of our derivatives outstanding on a gross and net basis:

	Gross Amounts Recognized			Gross Amounts Offset in the Consolidated Balance Sheets			Net Amounts Presented in the Consolidated Balance Sheets			Gross Amounts Not Offset in the Consolidated Balance Sheets
Offsetting Derivative Assets (Liabilities)										Derivative Instrument		Cash Collateral Received (Paid)		Net Amount
As of December 31, 2014:
LNG Inventory Derivatives	$	1,216		$	1,132		$	84		$	—	$	—	$	84
Term Gas Supply Derivatives	662			—			662			—		—		662
Term Gas Supply Derivatives	(320		)	—			(320		)	—		—		(320		)
Interest Rate Derivatives - Not Designated	11,158			—			11,158			—		—		11,158
Interest Rate Derivatives - Not Designated	(23,194		)	—			(23,194		)	—		—		(23,194		)
As of December 31, 2013:
LNG Inventory Derivatives	(161		)	(161		)	—			—		—		—
Fuel Derivatives	27			—			27			—		—		27
Interest Rate Derivatives - Not Designated	98,123			—			98,123			—		—		98,123
Interest Rate Derivatives - Not Designated	(13,484		)	—			(13,484		)	—		—		(13,484		)

Interest Rate Contract [Member]

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Fair Value of Derivative Instruments by Balance Sheet Location

The following table (in thousands) shows the fair value of our Interest Rate Derivatives:

		Fair Value Measurements as of
	Balance Sheet Location	December 31, 2014			December 31, 2013
Interest Rate Derivatives - Not Designated	Non-current derivative assets	$	11,158		$	98,123
Interest Rate Derivatives - Not Designated	Other current liabilities	(23,194		)	(13,484		)

Interest Rate Contract [Member] | Derivative gain (loss), net [Member]

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative Instruments, Gain (Loss)

The following table (in thousands) shows the changes in the fair value and settlements of our Interest Rate Derivatives—Not Designated recorded in derivative gain (loss), net on our Consolidated Statements of Operations during the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
	2014			2013		2012
Interest Rate Derivatives - Not Designated	$	(119,401	)	$	88,596	$	679