Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Property, Plant and Equipment

 v2.3.0.11
Note 7 - Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2011
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
Property, Plant and Equipment

Property, plant and equipment consists of LNG terminal and natural gas pipeline costs, LNG site and related costs, investments in oil and gas properties, and fixed assets, as follows (in thousands):
 
 
June 30,
2011
 
December 31,
2010
LNG terminal costs
 
 
 
 
LNG terminal
 
$
1,639,184

 
$
1,638,811

LNG terminal construction-in-process
 
44,945

 
39,393

LNG site and related costs, net
 
3,485

 
3,362

Accumulated depreciation
 
(103,687
)
 
(82,246
)
Total LNG terminal costs, net
 
1,583,927

 
1,599,320

 
 
 
 
 
Natural gas pipeline costs
 
 

 
 

Natural gas pipeline
 
563,732

 
563,714

Natural gas pipeline construction-in-process
 
2,542

 
2,484

Pipeline right-of-ways
 
18,455

 
18,455

Accumulated depreciation
 
(45,405
)
 
(37,939
)
Total natural gas pipeline costs, net
 
539,324

 
546,714

 
 
 
 
 
Oil and gas properties, successful efforts method
 
 

 
 

Proved
 
4,165

 
3,872

Accumulated depreciation, depletion and amortization
 
(3,027
)
 
(2,604
)
Total oil and gas properties, net
 
1,138

 
1,268

 
 
 
 
 
Fixed assets
 
 

 
 

Computers and office equipment
 
5,518

 
5,472

Furniture and fixtures
 
4,509

 
4,509

Computer software
 
12,601

 
12,526

Leasehold improvements
 
7,318

 
7,318

Other
 
1,615

 
1,453

Accumulated depreciation
 
(22,617
)
 
(20,983
)
Total fixed assets, net
 
8,944

 
10,295

Property, plant and equipment, net
 
$
2,133,333

 
$
2,157,597

 
LNG Terminal Costs
 
Depreciation expense related to the Sabine Pass LNG terminal totaled $10.7 million and $10.5 million for the three months ended June 30, 2011 and 2010, respectively. Depreciation expense related to the Sabine Pass LNG terminal totaled $21.4 million and $21.0 million for the six months ended June 30, 2011 and 2010, respectively.

Natural Gas Pipeline Costs
 
Depreciation expense related to our Creole Trail pipeline totaled $3.8 million for the three months ended June 30, 2011 and 2010. Depreciation expense related to our Creole Trail pipeline totaled $7.5 million for the six months ended June 30, 2011 and 2010.
  
Fixed Assets
 
Depreciation expense related to our fixed assets totaled $0.8 million and $1.1 million for the three months ended June 30, 2011 and 2010, respectively. Depreciation expense related to our fixed assets totaled $1.6 million and $2.5 million for the six months ended June 30, 2011 and 2010, respectively.