| PROPERTY, PLANT AND EQUIPMENT
As of March 31, 2019 and December 31, 2018, property, plant and equipment, net consisted of the following (in millions):
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March 31, |
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December 31, |
|
|
2019 |
|
2018 |
LNG terminal costs |
|
|
|
|
LNG terminal and interconnecting pipeline facilities |
|
$ |
23,626 |
|
|
$ |
13,386 |
|
LNG site and related costs |
|
319 |
|
|
86 |
|
LNG terminal construction-in-process |
|
5,239 |
|
|
14,864 |
|
Accumulated depreciation |
|
(1,433 |
) |
|
(1,299 |
) |
Total LNG terminal costs, net |
|
27,751 |
|
|
27,037 |
|
Fixed assets and other |
|
|
|
|
|
|
Computer and office equipment |
|
18 |
|
|
17 |
|
Furniture and fixtures |
|
22 |
|
|
22 |
|
Computer software |
|
101 |
|
|
100 |
|
Leasehold improvements |
|
41 |
|
|
41 |
|
Land |
|
59 |
|
|
59 |
|
Other |
|
22 |
|
|
21 |
|
Accumulated depreciation |
|
(119 |
) |
|
(111 |
) |
Total fixed assets and other, net |
|
144 |
|
|
149 |
|
Assets under finance lease |
|
|
|
|
Tug vessels |
|
60 |
|
|
60 |
|
Accumulated depreciation |
|
(2 |
) |
|
(1 |
) |
Total assets under finance lease, net |
|
58 |
|
|
59 |
|
Property, plant and equipment, net |
|
$ |
27,953 |
|
|
$ |
27,245 |
|
Depreciation expense was $143 million and $108 million during the three months ended March 31, 2019 and 2018, respectively.
We realize offsets to LNG terminal costs for sales of commissioning cargoes that were earned or loaded prior to the start of commercial operations of the respective Train during the testing phase for its construction. We realized offsets to LNG terminal costs of $202 million in the three months ended March 31, 2019 for sales of commissioning cargoes from Train 5 of the SPL Project and Train 1 of the CCL Project. We did not realize any offsets to LNG terminal costs in the three months ended March 31, 2018.
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