Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v2.4.0.6
Property, Plant and Equipment
 3 Months Ended
Mar. 31, 2013
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
 
Property, plant and equipment consists of LNG terminal and natural gas pipeline costs, investments in oil and gas properties, and fixed assets, as follows (in thousands):
 
March 31,
 
December 31,
 
2013
 
2012
LNG terminal costs
 
 
 
LNG terminal
$
1,651,101

 
$
1,651,106

LNG terminal construction-in-process
1,815,032

 
1,267,371

LNG site and related costs, net
5,396

 
5,398

Accumulated depreciation
(178,076
)
 
(167,472
)
Total LNG terminal costs, net
$
3,293,453

 
$
2,756,403

 
 
 
 
Natural gas pipeline costs
 

 
 

Natural gas pipeline
$
564,145

 
$
564,034

Natural gas pipeline construction-in-process
11,033

 
2,427

Pipeline right-of-ways
18,455

 
18,455

Accumulated depreciation
(71,545
)
 
(67,803
)
Total natural gas pipeline costs, net
$
522,088

 
$
517,113

 
 
 
 
Oil and gas properties, successful efforts method
 

 
 

Proved
$
3,925

 
$
3,917

Accumulated depreciation, depletion and amortization
(3,249
)
 
(3,209
)
Total oil and gas properties, net
$
676

 
$
708

 
 
 
 
Fixed assets
 

 
 

Computer and office equipment
$
7,298

 
$
7,014

Furniture and fixtures
4,145

 
4,057

Computer software
13,015

 
13,012

Leasehold improvements
7,022

 
6,989

Other
3,321

 
2,927

Accumulated depreciation
(26,719
)
 
(25,918
)
Total fixed assets, net
$
8,082

 
$
8,081

Property, plant and equipment, net
$
3,824,299

 
$
3,282,305


 
LNG Terminal Costs
 
Depreciation expense related to the Sabine Pass LNG terminal totaled $10.6 million for each of the three months ended March 31, 2013 and 2012.

In June 2012, Train 1 and Train 2 of the Liquefaction Project satisfied the criteria for capitalization. Accordingly, costs associated with the construction of Train 1 and Train 2 of the Liquefaction Project have been recorded as construction-in-process since that date. For the three months ended March 31, 2013, we capitalized $35.3 million of interest expense related to the construction of the Liquefaction Project.

Natural Gas Pipeline Costs 

Depreciation expense related to the Creole Trail Pipeline totaled $3.7 million for each of the three months ended March 31, 2013 and 2012.

Fixed Assets 

Depreciation expense related to our fixed assets totaled $0.8 million and $2.0 million for the three months ended March 31, 2013 and 2012, respectively.