Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v2.4.0.8
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2013
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
 
Property, plant and equipment consists of LNG terminal costs, investments in oil and gas properties, and fixed assets, as follows (in thousands):
 
June 30,
 
December 31,
 
2013
 
2012
LNG terminal costs
 
 
 
LNG terminal
$
2,233,776

 
$
2,233,595

LNG terminal construction-in-process
2,909,974

 
1,269,798

LNG site and related costs, net
5,394

 
5,398

Accumulated depreciation
(263,977
)
 
(235,275
)
Total LNG terminal costs, net
$
4,885,167

 
$
3,273,516

 
 
 
 
Oil and gas properties, successful efforts method
 

 
 

Proved
$
3,933

 
$
3,917

Accumulated depreciation, depletion and amortization
(3,279
)
 
(3,209
)
Total oil and gas properties, net
$
654

 
$
708

 
 
 
 
Fixed assets
 

 
 

Computer and office equipment
$
7,563

 
$
7,014

Furniture and fixtures
4,163

 
4,057

Computer software
13,012

 
13,012

Leasehold improvements
7,239

 
6,989

Other
3,362

 
2,927

Accumulated depreciation
(27,555
)
 
(25,918
)
Total fixed assets, net
$
7,784

 
$
8,081

Property, plant and equipment, net
$
4,893,605

 
$
3,282,305


 
LNG Terminal Costs
 
Depreciation expense related to the Sabine Pass LNG terminal totaled $14.3 million for each of the three months ended June 30, 2013 and 2012. Depreciation expense related to the Sabine Pass LNG terminal totaled $28.6 million and $28.5 million for the six months ended June 30, 2013 and 2012, respectively.

In June 2012, we satisfied the criteria for capitalizing costs associated with Trains 1 and 2 of the Liquefaction Project, and in May 2013, we satisfied the criteria for capitalizing costs associated with Trains 3 and 4 of the Liquefaction Project. For the three months ended June 30, 2013, we capitalized $59.4 million of interest expense related to the construction of the Liquefaction Project. For the six months ended June 30, 2013, we capitalized $94.7 million of interest expense related to the construction of the Liquefaction Project.

Fixed Assets 

Depreciation expense related to our fixed assets totaled $0.8 million and $0.7 million for the three months ended June 30, 2013 and 2012, respectively. Depreciation expense related to our fixed assets totaled $1.6 million and $2.7 million for the six months ended June 30, 2013 and 2012, respectively.