Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.19.3
Property, Plant and Equipment
 9 Months Ended
Sep. 30, 2019
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment PROPERTY, PLANT AND EQUIPMENT
 
As of September 30, 2019 and December 31, 2018, property, plant and equipment, net consisted of the following (in millions):
 
 
September 30,
 
December 31,
 
 
2019
 
2018
LNG terminal costs
 
 
 
 
LNG terminal and interconnecting pipeline facilities
 
$
27,224

 
$
13,386

LNG site and related costs
 
322

 
86

LNG terminal construction-in-process
 
3,576

 
14,864

Accumulated depreciation
 
(1,827
)
 
(1,299
)
Total LNG terminal costs, net
 
29,295

 
27,037

Fixed assets and other
 
 

 
 

Computer and office equipment
 
23

 
17

Furniture and fixtures
 
22

 
22

Computer software
 
106

 
100

Leasehold improvements
 
42

 
41

Land
 
59

 
59

Other
 
20

 
21

Accumulated depreciation
 
(134
)
 
(111
)
Total fixed assets and other, net
 
138

 
149

Assets under finance lease
 
 
 
 
Tug vessels
 
60

 
60

Accumulated depreciation
 
(3
)
 
(1
)
Total assets under finance lease, net
 
57

 
59

Property, plant and equipment, net
 
$
29,490

 
$
27,245



Depreciation expense was $211 million and $112 million during the three months ended September 30, 2019 and 2018, respectively, and $557 million and $331 million during the nine months ended September 30, 2019 and 2018, respectively.

We realize offsets to LNG terminal costs for sales of commissioning cargoes that were earned or loaded prior to the start of commercial operations of the respective Train during the testing phase for its construction. We realized offsets to LNG terminal costs of $99 million and $301 million during the three and nine months ended September 30, 2019, respectively, for sales of commissioning cargoes from the Liquefaction Projects. We did not realize any offsets to LNG terminal costs during the three and nine months ended September 30, 2018.