Annual report pursuant to Section 13 and 15(d)

Other Non-Current Assets

Other Non-Current Assets
12 Months Ended
Dec. 31, 2022
Other Assets, Noncurrent [Abstract]  
Other non-current assets, net consisted of the following (in millions):
December 31,
2022 2021
Contract assets, net of current expected credit losses $ 171  $ 135 
Advances made to municipalities for water system enhancements 78  81 
Equity method investments 16  56 
Advances and other asset conveyances to third parties to support LNG terminals 92  80 
Debt issuance costs and debt discount, net of accumulated amortization 60  34 
Advances made under EPC and non-EPC contracts — 
Advance tax-related payments and receivables 20  17 
Other 92  54 
Total other non-current assets, net $ 529  $ 462 

Equity Method Investments

Interest in Midship Holdings, LLC

As of December 31, 2022, our equity method investment balance consists of our interest in Midship Holdings, LLC (“Midship Holdings”), which manages the business and affairs of Midship Pipeline Company, LLC (“Midship Pipeline”). Midship Pipeline is currently operating an approximately 200-mile natural gas pipeline project (the “Midship Project”) that connects production in the Anadarko Basin to Gulf Coast markets. The Midship Project commenced operations in April 2020.

During the years ended December 31, 2022, 2021 and 2020, we recognized other-than-temporary impairment losses of $67 million, $37 million and $129 million, respectively, related to our investment in Midship Holdings. Impairment losses during the year ended December 31, 2022 were primarily the result of increased forecast construction-related and operating costs, resulting in an other-than-temporary reduction in the fair value of our equity interests. Impairment losses during the years ended December 31, 2021 and 2020 were precipitated primarily due to declining market conditions in the energy industry and customer credit risk, resulting in an other-than-temporary reduction in the fair value of our equity interests. The fair values of our equity interests were primarily measured using an income approach, which utilized level 3 fair value inputs such as
projected earnings and discount rates. Impairment losses associated with our equity method investment is presented in other expense, net.

Our investment in Midship Holdings, net of impairment losses, was $16 million and $56 million as of December 31, 2022 and 2021, respectively.
Interest in ADCC Pipeline, LLCIn June 2022, we acquired a 30% equity interest in ADCC Pipeline, LLC and its wholly owned subsidiary (collectively, “ADCC Pipeline”) through our wholly owned subsidiary Cheniere ADCC Investments, LLC. ADCC Pipeline will develop, construct and operate an approximately 42-mile natural gas pipeline project (the “ADCC Pipeline Project”) connecting the Agua Dulce natural gas hub to the CCL Project. We currently have a future commitment of up to approximately $93 million to fund our equity interest, which commitment is subject to a condition precedent that has not yet been satisfied. Upon funding of such commitment, the investment will be recognized in our Consolidated Balance Sheets as an equity method investment.