Note 7 - Property, Plant and Equipment

6 Months Ended

Jun. 30, 2011

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Property, Plant and Equipment

Property, plant and equipment consists of LNG terminal and natural gas pipeline costs, LNG site and related costs, investments in oil and gas properties, and fixed assets, as follows (in thousands):



	June 30, 2011			December 31, 2010
LNG terminal costs
LNG terminal	$	1,639,184		$	1,638,811
LNG terminal construction-in-process	44,945			39,393
LNG site and related costs, net	3,485			3,362
Accumulated depreciation	(103,687		)	(82,246		)
Total LNG terminal costs, net	1,583,927			1,599,320

Natural gas pipeline costs
Natural gas pipeline	563,732			563,714
Natural gas pipeline construction-in-process	2,542			2,484
Pipeline right-of-ways	18,455			18,455
Accumulated depreciation	(45,405		)	(37,939		)
Total natural gas pipeline costs, net	539,324			546,714

Oil and gas properties, successful efforts method
Proved	4,165			3,872
Accumulated depreciation, depletion and amortization	(3,027		)	(2,604		)
Total oil and gas properties, net	1,138			1,268

Fixed assets
Computers and office equipment	5,518			5,472
Furniture and fixtures	4,509			4,509
Computer software	12,601			12,526
Leasehold improvements	7,318			7,318
Other	1,615			1,453
Accumulated depreciation	(22,617		)	(20,983		)
Total fixed assets, net	8,944			10,295
Property, plant and equipment, net	$	2,133,333		$	2,157,597

LNG Terminal Costs

Depreciation expense related to the Sabine Pass LNG terminal totaled $10.7 million and $10.5 million for the three months ended June 30, 2011 and 2010, respectively. Depreciation expense related to the Sabine Pass LNG terminal totaled $21.4 million and $21.0 million for the six months ended June 30, 2011 and 2010, respectively.

Natural Gas Pipeline Costs

Depreciation expense related to our Creole Trail pipeline totaled $3.8 million for the three months ended June 30, 2011 and 2010. Depreciation expense related to our Creole Trail pipeline totaled $7.5 million for the six months ended June 30, 2011 and 2010.

Fixed Assets

Depreciation expense related to our fixed assets totaled $0.8 million and $1.1 million for the three months ended June 30, 2011 and 2010, respectively. Depreciation expense related to our fixed assets totaled $1.6 million and $2.5 million for the six months ended June 30, 2011 and 2010, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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