Property, Plant and Equipment

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consists of LNG terminal costs and fixed assets and other, as follows (in thousands):



	September 30,			December 31,
	2013			2012
LNG terminal costs
LNG terminal	$	2,233,748		$	2,233,595
LNG terminal construction-in-process	3,735,876			1,269,798
LNG site and related costs, net	5,766			5,398
Accumulated depreciation	(278,071		)	(235,275		)
Total LNG terminal costs, net	5,697,319			3,273,516

Fixed assets and other
Computer and office equipment	7,808			7,014
Furniture and fixtures	4,167			4,057
Computer software	13,125			13,012
Leasehold improvements	7,226			6,989
Other	7,552			6,844
Accumulated depreciation	(31,630		)	(29,127		)
Total fixed assets, net	8,248			8,789
Property, plant and equipment, net	$	5,705,567		$	3,282,305

LNG Terminal Costs

Depreciation expense related to the Sabine Pass LNG terminal totaled $14.4 million and $14.5 million for the three months ended September 30, 2013 and 2012, respectively. Depreciation expense related to the Sabine Pass LNG terminal totaled $43.0 million for each of 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.

Fixed Assets and Other

Depreciation expense related to our fixed assets and other totaled $0.8 million for each of the three months ended September 30, 2013 and 2012. Depreciation expense related to our fixed assets and other totaled $2.5 million and $3.6 million for the nine months ended September 30, 2013 and 2012, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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