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| Related Party Transactions | RELATED PARTY TRANSACTIONS Natural Gas Supply Agreements
SPL and CCL are party to natural gas supply agreements with related parties in the ordinary course of business, to obtain a fixed minimum daily volume of feed gas for the operation of the Liquefaction Projects. These related parties are partially owned by The Blackstone Group Inc., who also partially owns Cheniere Partners’ limited partner interests.
SPL Natural Gas Supply Agreement
The term of the SPL agreement is for five years, which can commence no earlier than November 1, 2021 and no later than November 1, 2022, following the achievement of contractually-defined conditions precedent. As of September 30, 2021
and December 31, 2020, the notional amount for this agreement was 99 TBtu and 91 TBtu, respectively. As of both September 30, 2021 and December 31, 2020, the agreement had a fair value of zero.
CCL Natural Gas Supply Agreement
The term of the CCL agreement extends through March 2022. Under this agreement, CCL recorded $19 million and $13 million in accrued liabilities, as of September 30, 2021 and December 31, 2020, respectively.
The Liquefaction Supply Derivatives related to this agreement are recorded on our Consolidated Balance Sheets as follows (in millions, except notional amount):
We recorded the following amounts on our Consolidated Statements of Operations during the three and nine months ended September 30, 2021 and 2020 related to this agreement (in millions):
Natural Gas Transportation and Storage Agreements
SPL is party to various natural gas transportation and storage agreements and CTPL is party to an operational balancing agreement with a related party in the ordinary course of business for the operation of the SPL Project, with initial primary terms of up to 10 years with extension rights. This related party is partially owned by Brookfield Asset Management, Inc., who indirectly acquired a portion of Cheniere Partners’ limited partner interests in September 2020. We recorded operating and maintenance expense of $12 million and $34 million and cost of sales of zero and $1 million during the three and nine months ended September 30, 2021, respectively, and accrued liabilities of $5 million and $4 million as of September 30, 2021 and December 31, 2020, respectively, with this related party.
CCL is party to natural gas transportation agreements with Midship Pipeline Company, LLC (“Midship Pipeline”) in the ordinary course of business for the operation of the CCL Project, for a period of 10 years which began in May 2020. We account for our investment in Midship Holdings, LLC (“Midship Holdings”), which manages the business and affairs of Midship Pipeline, as an equity method investment. We recorded operating and maintenance expense of $2 million during both the three months ended September 30, 2021 and 2020 and $7 million and $4 million during the nine months ended September 30, 2021 and 2020, respectively. Additionally, we recorded accrued liabilities of $1 million as of both September 30, 2021 and December 31, 2020 with this related party.
Operation and Maintenance Service Agreements Cheniere LNG O&M Services, LLC (“O&M Services”), our wholly owned subsidiary, provides the development, construction, operation and maintenance services to Midship Pipeline pursuant to agreements in which O&M Services receives an agreed upon fee and reimbursement of costs incurred. O&M Services recorded $2 million in each of the three months ended September 30, 2021 and 2020 and $5 million and $8 million in the nine months ended September 30, 2021 and 2020, respectively, of other revenues and $1 million and $2 million of accounts receivable as of September 30, 2021 and December 31, 2020, respectively, for services provided to Midship Pipeline under these agreements.
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