Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

v3.20.4
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment PROPERTY, PLANT AND EQUIPMENT
 
As of December 31, 2020 and 2019, property, plant and equipment, net consisted of the following (in millions):
December 31,
2020 2019
LNG terminal costs    
LNG terminal and interconnecting pipeline facilities $ 27,475  $ 27,305 
LNG site and related costs 324  322 
LNG terminal construction-in-process 5,378  3,903 
Accumulated depreciation (2,935) (2,049)
Total LNG terminal costs, net 30,242  29,481 
Fixed assets and other    
Computer and office equipment 25  23 
Furniture and fixtures 19  22 
Computer software 117  110 
Leasehold improvements 45  42 
Land 59  59 
Other 25  21 
Accumulated depreciation (164) (141)
Total fixed assets and other, net 126  136 
Assets under finance lease
Tug vessels 60  60 
Accumulated depreciation (7) (4)
Total assets under finance lease, net 53  56 
Property, plant and equipment, net $ 30,421  $ 29,673 
The following table shows depreciation expense and offsets to LNG terminal costs during the years ended December 31, 2020 and 2019 (in millions):
Year Ended December 31,
2020 2019 2018
Depreciation expense $ 926  $ 788  $ 445 
Offsets to LNG terminal costs (1) 19  301  140 
(1)    We realize 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.

LNG Terminal Costs

Our LNG terminals are depreciated using the straight-line depreciation method applied to groups of LNG terminal assets with varying useful lives. The identifiable components of our LNG terminals have depreciable lives between 7 and 50 years, as follows:
Components Useful life (yrs)
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
7-50
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.