Cheniere Energy, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2018

LEASES

During the years ended December 31, 2018, 2017 and 2016, we recognized rental expense for all operating leases of $335 million, $199 million and $86 million, respectively, related primarily to LNG vessel time charters, office space and land sites. Our land site leases for the Sabine Pass LNG terminal have initial terms varying up to 30 years with multiple options to renew up to an additional 60 years.

Future annual minimum lease payments, excluding inflationary adjustments, for operating leases are as follows (in millions):



Years Ending December 31,	Operating Leases (1)
2019 (2)	$	380
2020	184
2021	238
2022	264
2023	264
Thereafter	999
Total	$	2,329


(1)	Includes certain lease option renewals that are reasonably assured and payments for certain non-lease components.


(2)	Does not include $43 million in aggregate payments we will receive from our LNG vessel time charter subleases.

Capital Leases

In December 2015, we entered into a lease agreement for marine services related to the CCL Project that was classified as a capital lease. The service term of this lease commenced at various times during the year ended December 31, 2018, and the tug vessels received under the agreement are recorded within property, plant and equipment, net on our Consolidated Balance Sheets.

Future annual minimum lease payments, excluding inflationary adjustments, for capital leases are as follows (in millions):



Years Ending December 31,	Capital Leases
2019	$	5
2020	5
2021	5
2022	5
2023	5
Thereafter	73
Total minimum lease payments (1)	98
Less: amount representing imputed interest	(39		)
Present value of minimum lease payment	59
Less: current portion of capital lease obligations	(2		)
Non-current portion of capital lease obligations	$	57


(1)	Does not include payments for non-lease components of $98 million.