Property, Plant and Equipment

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, net consists of LNG terminal costs and fixed assets, as follows (in millions):

	September 30,			December 31,
	2017			2016
LNG terminal costs
LNG terminal	$	7,821		$	5,270
LNG terminal construction-in-process	5,290			6,675
Accumulated depreciation	(251		)	(75		)
Total LNG terminal costs, net	12,860			11,870
Fixed assets
Fixed assets	9			9
Accumulated depreciation	(5		)	(4		)
Total fixed assets, net	4			5
Property, plant and equipment, net	$	12,864		$	11,875

Depreciation expense was $66 million and $24 million in the three months ended September 30, 2017 and 2016, respectively, and $177 million and $33 million in the nine months ended September 30, 2017 and 2016, respectively.

We realized offsets to LNG terminal costs of $79 million and $59 million in the three months ended September 30, 2017 and 2016, respectively, and $242 million and $201 million in the nine months ended September 30, 2017 and 2016, 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 Liquefaction Project, during the testing phase for its construction.