Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.10.0.1
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
 
Property, plant and equipment, net consists of LNG terminal costs and fixed assets and other, as follows (in millions):
 
 
June 30,
 
December 31,
 
 
2018
 
2017
LNG terminal costs
 
 
 
 
LNG terminal
 
$
13,101

 
$
12,687

LNG terminal construction-in-process
 
13,511

 
11,932

LNG site and related costs
 
86

 
86

Accumulated depreciation
 
(1,087
)
 
(882
)
Total LNG terminal costs, net
 
25,611

 
23,823

Fixed assets and other
 
 

 
 

Computer and office equipment
 
17

 
14

Furniture and fixtures
 
19

 
19

Computer software
 
96

 
92

Leasehold improvements
 
41

 
41

Land
 
59

 
59

Other
 
17

 
16

Accumulated depreciation
 
(100
)
 
(86
)
Total fixed assets and other, net
 
149

 
155

Property, plant and equipment, net
 
$
25,760

 
$
23,978



Depreciation expense was $111 million and $89 million during the three months ended June 30, 2018 and 2017, respectively, and $219 million and $159 million during the six months ended June 30, 2018 and 2017, respectively.

We realized offsets to LNG terminal costs of $39 million and $170 million in the three and six months ended June 30, 2017, respectively, 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 Train of the SPL Project, during the testing phase for its construction. We did not realize any offsets to LNG terminal costs in the three and six months ended June 30, 2018.