Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment (Notes)

v2.4.1.9
Property, Plant and Equipment (Notes)
 12 Months Ended
Dec. 31, 2014
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
 
Property, plant and equipment consists of LNG terminal costs and fixed assets and other, as follows (in thousands):
 
December 31,
 
2014
 
2013
LNG terminal costs
 
 
 
LNG terminal
$
2,269,429

 
$
2,234,796

LNG terminal construction-in-process
7,155,046

 
4,489,668

LNG site and related costs, net
9,395

 
6,511

Accumulated depreciation
(350,497
)
 
(292,434
)
Total LNG terminal costs, net
9,083,373

 
6,438,541

Fixed assets and other
 

 
 

Computer and office equipment
5,111

 
8,115

Furniture and fixtures
5,531

 
4,319

Computer software
46,882

 
13,504

Leasehold improvements
43,622

 
7,303

Land and other
92,403

 
15,388

Accumulated depreciation
(30,169
)
 
(32,771
)
Total fixed assets and other, net
163,380

 
15,858

Property, plant and equipment, net
$
9,246,753

 
$
6,454,399


 
LNG Terminal Costs

The Sabine Pass LNG terminal is depreciated using the straight-line depreciation method applied to groups of LNG terminal assets with varying useful lives. The identifiable components of the Sabine Pass LNG terminal with similar estimated useful lives have a depreciable range between 15 and 50 years, as follows:
Components
 
Useful life (yrs)
LNG storage tanks
 
50
Natural gas pipeline facilities
 
40
Marine berth, electrical, facility and roads
 
35
Regasification processing equipment (recondensers, vaporization and vents)
 
30
Sendout pumps
 
20
Other
 
15-30

We are developing the Corpus Christi Liquefaction Project and have capitalized certain costs associated with our proposed Corpus Christi LNG terminal for site work that improved the associated land.  As of December 31, 2014 and 2013, $66.1 million and $35.5 million, respectively, of costs associated with the initial site work for the proposed Corpus Christi LNG terminal were capitalized as LNG terminal construction-in-process.  

Fixed Assets and Other

Our fixed assets and other are recorded at cost and are depreciated on a straight-line method based on estimated lives of the individual assets or groups of assets.