Related Party Transactions
|3 Months Ended|
Mar. 31, 2022
|Related Party Transactions [Abstract]|
|Related Party Transactions||RELATED PARTY TRANSACTIONS
Natural Gas Supply Agreements
CCL Natural Gas Supply Agreement
CCL was party to a natural gas supply agreement with a related party in the ordinary course of business, to obtain a fixed minimum daily volume of feed gas for the operation of the CCL Project. The related party entity was acquired by a non-related party on November 1, 2021; therefore, as of such date, this agreement ceased to be considered a related party agreement. During the three months ended March 31, 2021, we recorded $35 million of cost of sales related to this agreement, of which $1 millionwas related to Liquefaction Supply Derivatives gain.
Natural Gas Transportation and Storage Agreements
SPL is party to various natural gas transportation and storage agreements and CTPL is party to an operational balancing agreement with a related party in the ordinary course of business for the operation of the SPL Project, with initial primary terms of up to 10 years with extension rights. This related party is partially owned by Brookfield Asset Management, Inc., who indirectly acquired a portion of CQP’s limited partner interests in September 2020. We recorded operating and maintenance expense of $12 million and $10 million during the three months ended March 31, 2022 and 2021, respectively. Additionally, we recorded accrued liabilities of $5 million and $4 million as of March 31, 2022 and December 31, 2021, respectively, with this related party.
CCL is party to natural gas transportation agreements with Midship Pipeline Company, LLC (“Midship Pipeline”) in the ordinary course of business for the operation of the CCL Project, for a period of 10 years which began in May 2020. We account for our investment in Midship Holdings, LLC, which manages the business and affairs of Midship Pipeline, as an equity method investment. We recorded operating and maintenance expense of $2 million during both the three months ended March 31, 2022 and 2021. Additionally, we recorded accrued liabilities of $1 million as of both March 31, 2022 and December 31, 2021 with this related party.
Operation and Maintenance Service AgreementsCheniere LNG O&M Services, LLC (“O&M Services”), our wholly owned subsidiary, provides the development, construction, operation and maintenance services to Midship Pipeline pursuant to agreements in which O&M Services receives an agreed upon fee and reimbursement of costs incurred. O&M Services recorded $2 million in each of the three months ended March 31, 2022 and 2021, of other revenues and $1 million and $2 million of other receivables as of March 31, 2022 and December 31, 2021, respectively, for services provided to Midship Pipeline under these agreements.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef