PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

NOTE 3 — PROPERTY, PLANT AND EQUIPMENT

The components of property, plant and equipment consist of the following (in thousands):


	March 31, 2022		December 31, 2021
Upstream natural gas assets
Proved properties	$	117,336	$	96,297
Wells in progress	25,497		17,653
Accumulated DD&A	(52,539)		(48,638)
Total upstream natural gas assets, net	90,294		65,312

Driftwood Project
Land and land improvements	50,950		25,222
Driftwood terminal construction in progress	148,930		—
Finance lease assets, net of accumulated DD&A	57,589		57,883
Buildings and other assets, net of accumulated DD&A	363		371
Total Driftwood Project, net	257,832		83,476

Fixed assets and other
Leasehold improvements and other assets	4,443		3,104
Accumulated DD&A	(1,437)		(1,347)
Total fixed assets and other, net	3,006		1,757

Total property, plant and equipment, net	$	351,132	$	150,545

Land

We own land in Louisiana intended for the construction of the Driftwood Project. During the three months ended March 31, 2022, we acquired land essential for the construction of the Driftwood Project at a total cost of $19.0 million, inclusive of capitalized land purchase options of approximately $5.5 million.

Driftwood Terminal Construction in Progress

During the year ended December 31, 2021, the Company initiated certain owner construction activities necessary to proceed under our LSTK EPC agreement with Bechtel Energy Inc., formerly known as Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”), for Phase 1 of the Driftwood terminal dated as of November 10, 2017 (the “Phase 1 EPC Agreement”). On March 24, 2022, the Company issued a limited notice to proceed to Bechtel under the Phase 1 EPC Agreement to commence construction of Phase 1 of the Driftwood terminal on April 4, 2022. As the Company commenced construction activities, Deferred engineering costs and Permitting Costs of approximately $110.0 million and $13.4 million, respectively, were transferred to construction in progress as of March 31, 2022. The Company capitalizes all directly identifiable project costs as construction in progress until the constructed assets are placed in service.