Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.20.2
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment PROPERTY, PLANT AND EQUIPMENT
 
As of June 30, 2020 and December 31, 2019, property, plant and equipment, net consisted of the following (in millions):
 
 
June 30,
 
December 31,
 
 
2020
 
2019
LNG terminal costs
 
 
 
 
LNG terminal and interconnecting pipeline facilities
 
$
27,453

 
$
27,305

LNG site and related costs
 
322

 
322

LNG terminal construction-in-process
 
4,484

 
3,903

Accumulated depreciation
 
(2,494
)
 
(2,049
)
Total LNG terminal costs, net
 
29,765

 
29,481

Fixed assets and other
 
 

 
 

Computer and office equipment
 
24

 
23

Furniture and fixtures
 
19

 
22

Computer software
 
114

 
110

Leasehold improvements
 
43

 
42

Land
 
59

 
59

Other
 
25

 
21

Accumulated depreciation
 
(154
)
 
(141
)
Total fixed assets and other, net
 
130

 
136

Assets under finance lease
 
 
 
 
Tug vessels
 
60

 
60

Accumulated depreciation
 
(5
)
 
(4
)
Total assets under finance lease, net
 
55

 
56

Property, plant and equipment, net
 
$
29,950

 
$
29,673



Depreciation expense was $231 million and $203 million during the three months ended June 30, 2020 and 2019, respectively, and $463 million and $346 million during the six months ended June 30, 2020 and 2019, respectively.

We realized offsets to LNG terminal costs of $202 million during the six months ended June 30, 2019 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 Trains of the Liquefaction Projects, during the testing phase for its construction. We did not realize any offsets to LNG terminal costs during the three and six months ended June 30, 2020 and the three months ended June 30, 2019.