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, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net of Accumulated Depreciation PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
 
As of December 31, 2021 and 2020, property, plant and equipment, net of accumulated depreciation consisted of the following (in millions):
December 31,
2021 2020
LNG terminal    
LNG terminal and interconnecting pipeline facilities $ 30,660  $ 27,475 
LNG site and related costs 441  324 
LNG terminal construction-in-process 2,995  5,378 
Accumulated depreciation (3,912) (2,935)
Total LNG terminal, net of accumulated depreciation 30,184  30,242 
Fixed assets and other    
Computer and office equipment 25  25 
Furniture and fixtures 20  19 
Computer software 120  117 
Leasehold improvements 45  45 
Land 1  59 
Other 19  25 
Accumulated depreciation (176) (164)
Total fixed assets and other, net of accumulated depreciation 54  126 
Assets under finance lease
Tug vessels 60  60 
Accumulated depreciation (10) (7)
Total assets under finance lease, net of accumulated depreciation 50  53 
Property, plant and equipment, net of accumulated depreciation $ 30,288  $ 30,421 

The following table shows depreciation expense and offsets to LNG terminal costs during the years ended December 31, 2021, 2020 and 2019 (in millions):
Year Ended December 31,
2021 2020 2019
Depreciation expense $ 1,006  $ 926  $ 788 
Offsets to LNG terminal costs (1) 319  19  301 
(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.

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 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.