Property, Plant and Equipment

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

As of September 30, 2019 and December 31, 2018, property, plant and equipment, net consisted of the following (in millions):

	September 30,			December 31,
	2019			2018
LNG terminal costs
LNG terminal and interconnecting pipeline facilities	$	16,807		$	12,760
LNG terminal construction-in-process	1,196			3,913
Accumulated depreciation	(1,671		)	(1,290		)
Total LNG terminal costs, net	16,332			15,383
Fixed assets
Fixed assets	26			26
Accumulated depreciation	(20		)	(19		)
Total fixed assets, net	6			7
Property, plant and equipment, net	$	16,338		$	15,390

 

Depreciation expense was $136 million and $104 million during the three months ended September 30, 2019 and 2018, respectively, and $386 million and $310 million during the nine months ended September 30, 2019 and 2018, respectively.

We realized offsets to LNG terminal costs of $48 million during the nine months ended September 30, 2019 that were 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. We did not realize any offsets to LNG terminal costs during the three months ended September 30, 2019 and in the three and nine months ended September 30, 2018.