Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.10.0.1
Property, Plant and Equipment
9 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
 
As of September 30, 2018 and December 31, 2017, property, plant and equipment, net consisted of the following (in millions):
 
 
September 30,
 
December 31,
 
 
2018
 
2017
LNG terminal costs
 
 
 
 
LNG terminal and interconnecting pipeline facilities
 
$
13,162

 
$
12,687

LNG site and related costs
 
86

 
86

LNG terminal construction-in-process
 
14,269

 
11,932

Accumulated depreciation
 
(1,192
)
 
(882
)
Total LNG terminal costs, net
 
26,325

 
23,823

Fixed assets and other
 
 

 
 

Computer and office equipment
 
17

 
14

Furniture and fixtures
 
19

 
19

Computer software
 
97

 
92

Leasehold improvements
 
41

 
41

Land
 
59

 
59

Other
 
18

 
16

Accumulated depreciation
 
(107
)
 
(86
)
Total fixed assets and other, net
 
144

 
155

Tug vessels under capital lease
 
30

 

Property, plant and equipment, net
 
$
26,499

 
$
23,978



Depreciation expense was $112 million and $91 million during the three months ended September 30, 2018 and 2017, respectively, and $331 million and $250 million during the nine months ended September 30, 2018 and 2017, respectively.

We realized offsets to LNG terminal costs of $82 million and $252 million in the three and nine months ended September 30, 2017, respectively, that were related to the sale of commissioning cargoes because these amounts were earned or loaded prior to the start of commercial operations of the respective Train of the SPL Project, during the testing phase for its construction. We did not realize any offsets to LNG terminal costs in the three and nine months ended September 30, 2018.