Quarterly report pursuant to Section 13 or 15(d)

Other Non-Current Assets

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Other Non-Current Assets
 6 Months Ended
Jun. 30, 2020
Other Assets, Noncurrent [Abstract]  
Other Non-Current Assets OTHER NON-CURRENT ASSETS

As of June 30, 2020 and December 31, 2019, other non-current assets, net consisted of the following (in millions):
 
 
June 30,
 
December 31,
 
 
2020
 
2019
Advances made to municipalities for water system enhancements
 
$
86

 
$
87

Advances and other asset conveyances to third parties to support LNG terminals
 
61

 
55

Advances made under EPC and non-EPC contracts
 
6

 
29

Equity method investments
 
206

 
108

Debt issuance costs and debt discount, net
 
86

 
45

Tax-related payments and receivables
 
20

 
20

Contract assets, net
 
58

 
18

Other
 
23

 
26

Total other non-current assets, net
 
$
546

 
$
388


Equity Method Investments

Our equity method investments consist of interests in privately-held companies. In 2017, we acquired an equity interest in Midship Holdings, LLC (“Midship Holdings”), which manages the business and affairs of Midship Pipeline Company, LLC (“Midship Pipeline”), which we account for as an equity method investment. See Note 8—Other Non-Current Assets of our Notes to Consolidated Financial Statements in our annual report on Form 10-K for the fiscal year ended December 31, 2019 for further information.

Our investment in Midship Holdings, net of impairment losses, was $205 million and $105 million at June 30, 2020 and December 31, 2019, respectively.

Cheniere LNG O&M Services, LLC (“O&M Services”), our wholly owned subsidiary, provides the development, construction, operation and maintenance services associated with the Midship Project pursuant to agreements in which O&M Services receives an agreed upon fee and reimbursement of costs incurred. O&M Services recorded $3 million during both the three months ended June 30, 2020 and 2019 and $6 million and $7 million in the six months ended June 30, 2020 and 2019, respectively, of other revenues and $2 million and $3 million of accounts receivable as of June 30, 2020 and December 31, 2019, respectively, for services provided to Midship Pipeline under these agreements. CCL has entered into a transportation precedent agreement and a negotiated rate agreement with Midship Pipeline to secure firm pipeline transportation capacity for a period of 10 years commencing May 2020. CCL recorded $2 million in operating and maintenance expense during both the three and six months ended June 30, 2020 and $1 million of accounts payable as of June 30, 2020 under this agreement. In March 2020, CCH and CCL entered into a guaranty agreement whereby CCH absolutely and irrevocably guarantees CCL’s obligation under the transportation precedent agreement with Midship Pipeline.