Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment, Net of Accumulated Depreciation

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Property, Plant and Equipment, Net of Accumulated Depreciation
 12 Months Ended
Dec. 31, 2023
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,
2023 2022
Terminal and related assets    
Terminal and interconnecting pipeline facilities (1) $ 34,069  $ 33,815 
Land 463  451 
Construction-in-process 3,480  1,685 
Accumulated depreciation (6,099) (4,985)
Total terminal and related assets, net of accumulated depreciation 31,913  30,966 
Fixed assets and other    
Computer and office equipment 37  33 
Furniture and fixtures 31  20 
Computer software 125  121 
Leasehold improvements 43  48 
Other 21  20 
Accumulated depreciation (183) (191)
Total fixed assets and other, net of accumulated depreciation 74  51 
Assets under finance leases
Marine assets 532  533 
Accumulated depreciation (63) (22)
Total assets under finance leases, net of accumulated depreciation 469  511 
Property, plant and equipment, net of accumulated depreciation $ 32,456  $ 31,528 
(1)Includes power generation facility and associated power infrastructure located near Corpus Christi, Texas that was acquired during the year ended December 31, 2023 to mitigate power price risk associated with our anticipated increased power load at the Corpus Christi LNG Terminal.

The following table shows depreciation expense and offsets to LNG terminal costs (in millions):
Year Ended December 31,
2023 2022 2021
Depreciation expense $ 1,190  $ 1,113  $ 1,006 
Offsets to LNG terminal costs (1) —  204  319 
(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.
Terminal and related assets

Our terminal and related assets are depreciated using the straight-line depreciation method applied to groups of LNG terminal assets with varying useful lives. The identifiable components of our terminal and related assets 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 Leases

Our assets under finance leases primarily consist 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.