Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment, Net of Accumulated Depreciation

v3.22.4
Property, Plant and Equipment, Net of Accumulated Depreciation
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net of Accumulated Depreciation PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
 
Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions):
December 31,
2022 2021
LNG terminal    
Terminal and interconnecting pipeline facilities $ 33,815  $ 30,660 
Site and related costs 451  441 
Construction-in-process 1,685  2,995 
Accumulated depreciation (4,985) (3,912)
Total LNG terminal, net of accumulated depreciation 30,966  30,184 
Fixed assets and other    
Computer and office equipment 33  25 
Furniture and fixtures 20  20 
Computer software 121  120 
Leasehold improvements 48  45 
Land 1  1 
Other 19  19 
Accumulated depreciation (191) (176)
Total fixed assets and other, net of accumulated depreciation 51  54 
Assets under finance leases
Marine assets 533  60 
Accumulated depreciation (22) (10)
Total assets under finance lease, net of accumulated depreciation 511  50 
Property, plant and equipment, net of accumulated depreciation $ 31,528  $ 30,288 
The following table shows depreciation expense and offsets to LNG terminal costs (in millions):
Year Ended December 31,
2022 2021 2020
Depreciation expense $ 1,113  $ 1,006  $ 926 
Offsets to LNG terminal costs (1) 204  319  19 
(1)We recognize offsets to LNG terminal costs related to the sale of commissioning cargoes because these amounts were earned or loaded prior to the start of commercial operations of the respective Trains of the Liquefaction Projects during the testing phase for its construction.
LNG Terminal Costs

Our LNG terminals are depreciated using the straight-line depreciation method applied to groups of LNG terminal assets with varying useful lives. The identifiable components of our LNG terminals have depreciable lives between 6 and 50 years, as follows:
Components Useful life (years)
LNG storage tanks 50
Natural gas pipeline facilities 40
Marine berth, electrical, facility and roads 35
Water pipelines 30
Regasification processing equipment 30
Sendout pumps 20
Liquefaction processing equipment
6-50
Other
10-30
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.

Assets under Finance Lease

Our assets under finance lease consists of certain tug vessels and LNG vessel time charters that meet the classification of a finance lease. These assets are depreciated on a straight-line method over the respective lease term. See Note 12—Leases for additional details of our finance leases.