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, 2024
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,
2024 2023
Terminal and related assets    
Terminal and interconnecting pipeline facilities $ 34,282  $ 34,069 
Land 465  463 
Construction-in-process 5,486  3,480 
Accumulated depreciation (7,231) (6,099)
Total terminal and related assets, net of accumulated depreciation 33,002  31,913 
Fixed assets and other    
Computer and office equipment 36  37 
Furniture and fixtures 31  31 
Computer software 122  125 
Leasehold improvements 47  43 
Other 24  21 
Accumulated depreciation (188) (183)
Total fixed assets and other, net of accumulated depreciation 72  74 
Assets under finance leases
Marine assets 587  532 
Accumulated depreciation (109) (63)
Total assets under finance leases, net of accumulated depreciation 478  469 
Property, plant and equipment, net of accumulated depreciation $ 33,552  $ 32,456 
The following table shows depreciation expense and offsets to LNG terminal costs (in millions):
Year Ended December 31,
2024 2023 2022
Depreciation expense $ 1,213  $ 1,190  $ 1,113 
Offsets to LNG terminal costs (1) —  —  204 
(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 criteria to be classified as finance leases. These assets are depreciated on a straight-line method over the respective lease term. See Note 11—Leases for additional details of our finance leases.