Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Cover page. | |
Document Type | 10-K |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2019 |
Document Transition Report | false |
Entity File Number | 333-192373 |
Entity Registrant Name | Sabine Pass Liquefaction, LLC |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 27-3235920 |
Entity Address, Address Line One | 700 Milam Street |
Entity Address, Address Line Two | Suite 1900 |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77002 |
City Area Code | 713 |
Local Phone Number | 375-5000 |
Title of 12(b) Security | None |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Public Float | $ | $ 0 |
Documents Incorporated by Reference | None |
Entity Central Index Key | 0001499200 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | shares | 0 |
Balance Sheets
Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 0 | $ 0 |
Restricted cash | 181 | 756 |
Accounts and other receivables | 292 | 346 |
Accounts receivable—affiliate | 104 | 113 |
Advances to affiliate | 133 | 210 |
Inventory | 103 | 87 |
Derivative assets | 17 | 6 |
Other current assets | 36 | 18 |
Other current assets—affiliate | 22 | 21 |
Total current assets | 888 | 1,557 |
Property, plant and equipment, net | 13,861 | 13,209 |
Debt issuance costs, net | 6 | 12 |
Non-current derivative assets | 32 | 31 |
Other non-current assets, net | 165 | 158 |
Total assets | 14,952 | 14,967 |
Current liabilities | ||
Accounts payable | 38 | 11 |
Accrued liabilities | 629 | 768 |
Due to affiliates | 49 | 48 |
Deferred revenue | 132 | 91 |
Derivative liabilities | 9 | 66 |
Total current liabilities | 857 | 984 |
Long-term debt, net | 13,524 | 13,500 |
Non-current derivative liabilities | 16 | 14 |
Other non-current liabilities | 5 | 3 |
Other non-current liabilities—affiliate | 16 | 0 |
Commitments and contingencies (see Note 14) | ||
Member’s equity | 534 | 466 |
Total liabilities and member’s equity | $ 14,952 | $ 14,967 |
Statements of Income
Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Revenues | $ 6,523 | $ 6,126 | $ 4,024 |
Revenues from contracts with customers | 6,522 | 6,127 | 4,024 |
Operating costs and expenses | |||
Cost of sales (excluding depreciation and amortization expense shown separately below) | 3,373 | 3,403 | 2,317 |
Cost of sales—affiliate | 47 | 32 | 23 |
Operating and maintenance expense | 547 | 342 | 243 |
Operating and maintenance expense—affiliate | 450 | 423 | 329 |
Development expense | 0 | 2 | 2 |
General and administrative expense | 6 | 5 | 7 |
General and administrative expense—affiliate | 79 | 50 | 58 |
Depreciation and amortization expense | 447 | 349 | 264 |
Impairment expense and loss on disposal of assets | 6 | 0 | 0 |
Total operating costs and expenses | 4,955 | 4,606 | 3,243 |
Income from operations | 1,568 | 1,520 | 781 |
Other income (expense) | |||
Interest expense, net of capitalized interest | (705) | (589) | (494) |
Loss on modification or extinguishment of debt | 0 | 0 | (42) |
Derivative loss, net | 0 | 0 | (2) |
Other income | 10 | 13 | 7 |
Total other expense | (695) | (576) | (531) |
Net income | 873 | 944 | 250 |
LNG [Member] | |||
Revenues | |||
Revenues | 5,211 | 4,827 | 2,635 |
Revenues from contracts with customers | 5,210 | 4,828 | 2,635 |
LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | $ 1,312 | $ 1,299 | $ 1,389 |
Statements of Member's Equity (
Statements of Member's Equity (Deficit) - USD ($) $ in Millions | Total | Sabine Pass LNG-LP, LLC [Member] |
Members' equity, beginning of period at Dec. 31, 2016 | $ 486 | $ 486 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Capital contributions | 7 | 7 |
Distributions | (781) | (781) |
Net income | 250 | 250 |
Member's equity, end of period at Dec. 31, 2017 | (38) | (38) |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Capital contributions | 129 | 129 |
Distributions | (569) | (569) |
Net income | 944 | 944 |
Member's equity, end of period at Dec. 31, 2018 | 466 | 466 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Capital contributions | 1,046 | 1,046 |
Distributions | (1,851) | (1,851) |
Net income | 873 | 873 |
Member's equity, end of period at Dec. 31, 2019 | $ 534 | $ 534 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 873 | $ 944 | $ 250 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 447 | 349 | 264 |
Amortization of debt issuance costs, deferred commitment fees, premium and discount | 27 | 22 | 19 |
Loss on modification or extinguishment of debt | 0 | 0 | 42 |
Total losses (gains) on derivatives, net | (72) | 101 | 26 |
Net cash provided by (used for) settlement of derivative instruments | 5 | (3) | (14) |
Impairment expense and loss on disposal of assets | 6 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts and other receivables | 19 | (122) | (99) |
Accounts receivable—affiliate | 9 | 49 | (63) |
Advances to affiliate | (34) | (76) | (13) |
Inventory | (16) | (3) | 11 |
Accounts payable and accrued liabilities | (138) | 165 | 190 |
Due to affiliates | 8 | (6) | 22 |
Deferred revenue | 40 | 7 | 38 |
Other, net | (13) | (4) | (4) |
Other, net—affiliate | 0 | 0 | (12) |
Net cash provided by operating activities | 1,161 | 1,423 | 657 |
Cash flows from investing activities | |||
Property, plant and equipment, net | (1,282) | (771) | (1,279) |
Other | (1) | 0 | 0 |
Net cash used in investing activities | (1,283) | (771) | (1,279) |
Cash flows from financing activities | |||
Proceeds from issuances of debt | 0 | 0 | 2,314 |
Repayments of debt | 0 | 0 | (703) |
Debt issuance and deferred financing costs | 0 | 0 | (29) |
Capital contributions | 1,046 | 129 | 7 |
Distributions | (1,499) | (569) | (781) |
Net cash provided by (used in) financing activities | (453) | (440) | 808 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (575) | 212 | 186 |
Cash, cash equivalents and restricted cash—beginning of period | 756 | 544 | 358 |
Cash, cash equivalents and restricted cash—end of period | $ 181 | $ 756 | $ 544 |
Statements of Cash Flows - Bala
Statements of Cash Flows - Balances per Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Balances per Balance Sheets: | ||||
Cash and cash equivalents | $ 0 | $ 0 | ||
Restricted cash | 181 | 756 | ||
Total cash, cash equivalents and restricted cash | $ 181 | $ 756 | $ 544 | $ 358 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | ORGANIZATION AND NATURE OF OPERATIONS We are a Delaware limited liability company formed by Cheniere Partners. We are a Houston-based company with one member, Sabine Pass LNG-LP, LLC, an indirect wholly owned subsidiary of Cheniere Partners. We and SPLNG are each indirect wholly owned subsidiaries of Cheniere Investments, which is a wholly owned subsidiary of Cheniere Partners, a publicly traded limited partnership (NYSE MKT: CQP). Cheniere Partners is a 48.6% owned subsidiary of Cheniere, a Houston-based energy company primarily engaged in LNG-related businesses. Cheniere also owns 100% of the general partner interest in Cheniere Partners through ownership in Cheniere Energy Partners GP, LLC. We are currently operating five natural gas liquefaction Trains and are constructing one additional Train for a total production capacity of approximately 30 mtpa of LNG (the “Liquefaction Project”) at the Sabine Pass LNG terminal. The Sabine Pass LNG terminal is located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast, adjacent to the existing regasification facilities owned and operated by SPLNG. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Our Financial Statements have been prepared in accordance with GAAP . Certain reclassifications have been made to conform prior period information to the current presentation. The reclassifications did not have a material effect on our financial position, results of operations or cash flows. Recent Accounting Standards We adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , and subsequent amendments thereto on January 1, 2019 using the optional transition approach to apply the standard at the beginning of the first quarter of 2019 with no retrospective adjustments to prior periods. This standard requires a lessee to recognize leases on its balance sheet by recording a lease liability representing the obligation to make future lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The adoption of the standard did not materially impact our Financial Statements. Upon adoption of the standard we recorded right-of-use assets of $20 million in other non-current assets, net, and lease liabilities of $4 million in other non-current liabilities and $16 million in other non-current liabilities—affiliate. Use of Estimates The preparation of Financial Statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the Financial Statements and the accompanying notes. Management evaluates its estimates and related assumptions regularly, including those related to fair value measurements, revenue recognition, property, plant and equipment, derivative instruments and asset retirement obligations (“AROs”) , as further discussed under the respective sections within this note. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2 and 3 are terms for the priority of inputs to valuation approaches used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy Level 2 inputs are inputs that are directly or indirectly observable for the asset or liability, other than quoted prices included within Level 1. Hierarchy Level 3 inputs are inputs that are not observable in the market. In determining fair value, we use observable market data when available, or models that incorporate observable market data. In addition to market information, we incorporate transaction-specific details that, in management’s judgment, market participants would take into account in measuring fair value. We maximize the use of observable inputs and minimize our use of unobservable inputs in arriving at fair value estimates. Recurring fair-value measurements are performed for derivative instruments as disclosed in Note 7—Derivative Instruments . The carrying amount of cash and cash equivalents, restricted cash, accounts receivable and accounts payable reported on the Balance Sheets approximates fair value. The fair value of debt is the estimated amount we would have to pay to repurchase our debt in the open market, including any premium or discount attributable to the difference between the stated interest rate and market interest rate at each balance sheet date. Debt fair values, as disclosed in Note 10—Debt , are based on quoted market prices for identical instruments, if available, or based on valuations of similar debt instruments using observable or unobservable inputs. Non-financial assets and liabilities initially measured at fair value include intangible assets and AROs. Revenue Recognition We recognize revenues when we transfer control of promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. Revenues from the sale of LNG are recognized as LNG revenues. See Note 11—Revenues from Contracts with Customers for further discussion of revenues. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted Cash Restricted cash consists of funds that are contractually or legally restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our Balance Sheets. Accounts Receivable Accounts receivable is reported net of any allowances for doubtful accounts. We periodically review the collectability on our accounts receivable and recognize an allowance if there is probability of non-collection, based on historical write-off and customer-specific factors. We did no t have an allowance on our accounts receivable as of December 31, 2019 and 2018 . Inventory LNG and natural gas inventory are recorded at the lower of weighted average cost and net realizable value. Materials and other inventory are recorded at the lower of cost and net realizable value and subsequently charged to expense when issued. Accounting for LNG Activities Generally, we begin capitalizing the costs of a Train once it meets the following criteria: (1) regulatory approval has been received, (2) financing for the Train is available and (3) management has committed to commence construction. Prior to meeting these criteria, most of the costs associated with a Train are expensed as incurred. These costs primarily include professional fees associated with preliminary front-end engineering and design work, costs of securing necessary regulatory approvals and other preliminary investigation and development activities related to the Train. Generally, costs that are capitalized prior to a project meeting the criteria otherwise necessary for capitalization include: land acquisition costs, detailed engineering design work and certain permits that are capitalized as other non-current assets. The costs of lease options are amortized over the life of the lease once obtained. If no land or lease is obtained, the costs are expensed. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Expenditures for construction and commissioning activities, major renewals and betterments that extend the useful life of an asset are capitalized, while expenditures for maintenance and repairs (including those for planned major maintenance projects) to maintain property, plant and equipment in operating condition are generally expensed as incurred. We realize offsets to LNG terminal costs for sales of commissioning cargoes that were earned or loaded prior to the start of commercial operations of the respective Train during the testing phase for its construction. We depreciate our property, plant and equipment using the straight-line depreciation method. Upon retirement or other disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the account, and the resulting gains or losses are recorded in impairment expense and loss (gain) on disposal of assets. Management tests property, plant and equipment for impairment whenever events or changes in circumstances have indicated that the carrying amount of property, plant and equipment might not be recoverable. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets for purposes of assessing recoverability. Recoverability generally is determined by comparing the carrying value of the asset to the expected undiscounted future cash flows of the asset. If the carrying value of the asset is not recoverable, the amount of impairment loss is measured as the excess, if any, of the carrying value of the asset over its estimated fair value. Interest Capitalization We capitalize interest costs during the construction period of our LNG terminal and related assets as construction-in-process. Upon commencement of operations, these costs are transferred out of construction-in-process into terminal and interconnecting pipeline facilities assets and are amortized over the estimated useful life of the asset. Derivative Instruments We use derivative instruments to hedge our exposure to cash flow variability from commodity price risk. Derivative instruments are recorded at fair value and included in our Balance Sheets as assets or liabilities depending on the derivative position and the expected timing of settlement, unless they satisfy criteria for and we elect the normal purchases and sales exception. When we have the contractual right and intend to net settle, derivative assets and liabilities are reported on a net basis. Changes in the fair value of our derivative instruments are recorded in earnings, unless we elect to apply hedge accounting and meet specified criteria. We did no t have any derivative instruments designated as cash flow or fair value hedges during the years ended December 31, 2019, 2018 and 2017 . See Note 7—Derivative Instruments for additional details about our derivative instruments. Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents, restricted cash, derivative instruments and accounts receivable. We maintain cash balances at financial institutions, which may at times be in excess of federally insured levels. We have not incurred losses related to these balances to date. The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments. Certain of our commodity derivative transactions are executed through over-the-counter contracts which are subject to nominal credit risk as these transactions are settled on a daily margin basis with investment grade financial institutions. Collateral deposited for such contracts is recorded within other current assets. We monitor counterparty creditworthiness on an ongoing basis; however, we cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, we may be limited in our ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, we may not realize the benefit of some of our derivative instruments. We have entered into fixed price long-term SPAs generally with terms of 20 years with eight third parties and have entered into agreements with Cheniere Marketing. We are dependent on the respective customers’ creditworthiness and their willingness to perform under their respective SPAs. See Note 14—Customer Concentration for additional details about our customer concentration. Debt Our debt consists of current and long-term secured and unsecured debt securities and credit facilities with banks and other lenders. Debt issuances are placed directly by us or through securities dealers or underwriters and are held by institutional and retail investors. Debt is recorded on our Balance Sheets at par value adjusted for unamortized discount or premium and net of unamortized debt issuance costs related to term notes. Debt issuance costs consist primarily of arrangement fees, professional fees, legal fees and printing costs. If debt issuance costs are incurred in connection with a line of credit arrangement or on undrawn funds, they are presented as an asset on our Balance Sheets. Discounts, premiums and debt issuance costs directly related to the issuance of debt are amortized over the life of the debt and are recorded in interest expense, net of capitalized interest using the effective interest method. Gains and losses on the extinguishment or modification of debt are recorded in gain (loss) on modification or extinguishment of debt on our Statements of Income . Asset Retirement Obligations We recognize AROs for legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal use of the asset and for conditional AROs in which the timing or method of settlement are conditional on a future event that may or may not be within our control. The fair value of a liability for an ARO is recognized in the period in which it is incurred, if a reasonable estimate of fair value can be made. The fair value of the liability is added to the carrying amount of the associated asset. This additional carrying amount is depreciated over the estimated useful life of the asset. We have no t recorded an ARO associated with the Sabine Pass LNG terminal. Based on the real property lease agreements at the Sabine Pass LNG terminal, at the expiration of the term of the leases we are required to surrender the LNG terminal in good working order and repair, with normal wear and tear and casualty expected. Our property lease agreements at the Sabine Pass LNG terminal have terms of up to 90 years including renewal options. We have determined that the cost to surrender the liquefaction facilities at the Sabine Pass LNG terminal in good order and repair, with normal wear and tear and casualty expected, is immaterial. Income Taxes We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Statements of Income , is able to be included in the federal income tax return of Cheniere Partners, a publicly traded partnership which indirectly owns us. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Financial Statements. At December 31, 2019 , the tax basis of our assets and liabilities was $4.6 billion less than the reported amounts of our assets and liabilities. Pursuant to the indentures governing our debt, we are permitted to make distributions (“Tax Distributions”) for any fiscal year or portion thereof in which we are a limited partnership, disregarded entity or other substantially similar pass-through entity for federal and state income tax purposes. The Tax Distributions are equal to the tax that we would owe if we were a corporation subject to federal and state income tax that filed separate federal and state income tax returns, excluding the amounts covered by the state tax sharing agreement discussed in Note 12—Related Party Transactions . The Tax Distributions are limited to the amount of federal and/or state income taxes paid by Cheniere to the appropriate taxing authorities and are payable by us within 30 days of the date that Cheniere is required to make federal or state income tax payments to the appropriate taxing authorities. Business Segment Our liquefaction operations at the Sabine Pass LNG terminal represent a single reportable segment. Our |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Cash [Abstract] | |
Restricted Cash | RESTRICTED CASH Restricted cash consists of funds that are contractually or legally restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our Balance Sheets. As of December 31, 2019 and 2018 , restricted cash consisted of the following (in millions): December 31, 2019 2018 Current restricted cash Liquefaction Project $ 181 $ 756 Pursuant to the accounts agreement entered into with the collateral trustee for the benefit of our debt holders, we are required to deposit all cash received into reserve accounts controlled by the collateral trustee. The usage or withdrawal of such cash is restricted to the payment of liabilities related to the Liquefaction Project |
Accounts and Other Receivables
Accounts and Other Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts and Other Receivables | ACCOUNTS AND OTHER RECEIVABLES As of December 31, 2019 and 2018 , accounts and other receivables consisted of the following (in millions): December 31, 2019 2018 Trade receivable $ 283 $ 330 Other accounts receivable 9 16 Total accounts and other receivables $ 292 $ 346 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY As of December 31, 2019 and 2018 , inventory consisted of the following (in millions): December 31, 2019 2018 Natural gas $ 9 $ 28 LNG 27 6 Materials and other 67 53 Total inventory $ 103 $ 87 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT As of December 31, 2019 and 2018 , property, plant and equipment, net consisted of the following (in millions): December 31, 2019 2018 LNG terminal costs LNG terminal $ 13,736 $ 10,004 LNG terminal construction-in-process 1,222 3,866 Accumulated depreciation (1,104 ) (667 ) Total LNG terminal costs, net 13,854 13,203 Fixed assets Fixed assets 18 14 Accumulated depreciation (11 ) (8 ) Total fixed assets, net 7 6 Property, plant and equipment, net $ 13,861 $ 13,209 Depreciation expense was $442 million , $339 million and $257 million during the years ended December 31, 2019, 2018 and 2017 , respectively. We realized offsets to LNG terminal costs of $48 million , $94 million and $301 million during the years ended December 31, 2019, 2018 and 2017 , 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 Trains of the Liquefaction Project , during the testing phase for its construction. LNG Terminal Costs LNG terminal costs related to the Liquefaction Project are depreciated using the straight-line depreciation method applied to groups of LNG terminal assets with varying useful lives. The identifiable components of the Liquefaction Project have depreciable lives between 7 and 50 years, as follows: Components Useful life (yrs) Water pipelines 30 Liquefaction processing equipment 7-50 Other 10-30 Fixed Assets and Other Our fixed assets and other are recorded at cost and are depreciated on a straight-line method based on estimated lives of the individual assets or groups of assets. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS We have entered into commodity derivatives consisting of natural gas supply contracts for the commissioning and operation of the Liquefaction Project (“Physical Liquefaction Supply Derivatives”) and associated economic hedges (collectively, the “Liquefaction Supply Derivatives”) . We had previously entered into interest rate swaps to hedge the exposure to volatility in a portion of the floating-rate interest payments under one of our credit facilities (“Interest Rate Derivatives”) , and these Interest Rate Derivatives were settled in March 2017. We recognize our derivative instruments as either assets or liabilities and measure those instruments at fair value. None of our derivative instruments are designated as cash flow or fair value hedging instruments, and changes in fair value are recorded within our Statements of Income to the extent not utilized for the commissioning process. The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis as of December 31, 2019 and 2018 , which are classified as derivative assets , non-current derivative assets , derivative liabilities or non-current derivative liabilities in our Balance Sheets (in millions): Fair Value Measurements as of December 31, 2019 December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Liquefaction Supply Derivatives asset (liability) $ 3 $ (3 ) $ 24 $ 24 $ 5 $ (23 ) $ (25 ) $ (43 ) We value our Liquefaction Supply Derivatives using a market-based approach incorporating present value techniques, as needed, using observable commodity price curves, when available and other relevant data. The fair value of our Physical Liquefaction Supply Derivatives is predominantly driven by observable and unobservable market commodity prices and, as applicable to our natural gas supply contracts, our assessment of the associated events deriving fair value, including evaluating whether the respective market is available as pipeline infrastructure is developed. The fair value of our Physical Liquefaction Supply Derivatives incorporates risk premiums related to the satisfaction of conditions precedent, such as completion and placement into service of relevant pipeline infrastructure to accommodate marketable physical gas flow. As of December 31, 2019 and 2018 , some of our Physical Liquefaction Supply Derivatives existed within markets for which the pipeline infrastructure was under development to accommodate marketable physical gas flow. We include a portion of our Physical Liquefaction Supply Derivatives as Level 3 within the valuation hierarchy as the fair value is developed through the use of internal models which incorporate significant unobservable inputs. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks, such as future prices of energy units for unobservable periods, liquidity, volatility and contract duration. The Level 3 fair value measurements of natural gas positions within our Physical Liquefaction Supply Derivatives could be materially impacted by a significant change in certain natural gas prices. The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of December 31, 2019 : Net Fair Value Asset (in millions) Valuation Approach Significant Unobservable Input Significant Unobservable Inputs Range Physical Liquefaction Supply Derivatives $24 Market approach incorporating present value techniques Henry Hub basis spread $(0.350) - $0.058 Increases or decreases in basis, in isolation, would decrease or increase, respectively, the fair value of our Physical Liquefaction Supply Derivatives . The following table shows the changes in the fair value of our Level 3 Physical Liquefaction Supply Derivatives during the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, 2019 2018 2017 Balance, beginning of period $ (25 ) $ 43 $ 79 Realized and mark-to-market gains (losses): Included in cost of sales 6 (3 ) (37 ) Purchases and settlements: Purchases — (37 ) 14 Settlements 42 (29 ) (12 ) Transfers out of Level 3 (1) 1 1 (1 ) Balance, end of period $ 24 $ (25 ) $ 43 Change in unrealized gains (losses) relating to instruments still held at end of period $ 6 $ (3 ) $ (37 ) (1) Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. Derivative assets and liabilities arising from our derivative contracts with the same counterparty are reported on a net basis, as all counterparty derivative contracts provide for the unconditional right of set-off in the event of default. The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments in instances when our derivative instruments are in an asset position. Additionally, counterparties are at risk that we will be unable to meet our commitments in instances where our derivative instruments are in a liability position. We incorporate both our own nonperformance risk and the respective counterparty’s nonperformance risk in fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of any applicable credit enhancements, such as collateral postings, set-off rights and guarantees. Interest Rate Derivatives In March 2017, we settled the Interest Rate Derivatives we previously had to protect against volatility of future cash flows and hedge a portion of the variable interest payments on the credit facilities we entered into in June 2015. The following table shows the changes in the fair value and settlements of our Interest Rate Derivatives recorded in derivative loss, net on our Statements of Income during the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, 2019 2018 2017 Interest Rate Derivatives loss $ — $ — $ (2 ) Liquefaction Supply Derivatives We have entered into primarily index-based physical natural gas supply contracts and associated economic hedges to purchase natural gas for the commissioning and operation of the Liquefaction Project. The remaining terms of the physical natural gas supply contracts range up to 10 years , some of which commence upon the satisfaction of certain events or states of affairs. The notional natural gas position of our Liquefaction Supply Derivatives was approximately 3,663 TBtu and 2,978 TBtu as of December 31, 2019 and 2018 , respectively. The following table shows the fair value and location of our Liquefaction Supply Derivatives on our Balance Sheets (in millions): Fair Value Measurements as of (1) Balance Sheet Location December 31, 2019 December 31, 2018 Derivative assets $ 17 $ 6 Non-current derivative assets 32 31 Total derivative assets 49 37 Derivative liabilities (9 ) (66 ) Non-current derivative liabilities (16 ) (14 ) Total derivative liabilities (25 ) (80 ) Derivative asset (liability), net $ 24 $ (43 ) (1) Does not include collateral posted with counterparties by us of $2 million and $1 million for such contracts, which are included in other current assets in our Balance Sheets as of December 31, 2019 and 2018 , respectively. The following table shows the changes in the fair value, settlements and location of our Liquefaction Supply Derivatives recorded on our Statements of Income during the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, Statement of Income Location (1) 2019 2018 2017 Liquefaction Supply Derivatives gain (loss) LNG revenues $ 1 $ (1 ) $ — Liquefaction Supply Derivatives gain (loss) Cost of sales 71 (100 ) (24 ) (1) Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. Balance Sheet Presentation Our derivative instruments are presented on a net basis on our Balance Sheets as described above. The following table shows the fair value of our derivatives outstanding on a gross and net basis (in millions): Gross Amounts Recognized Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets Offsetting Derivative Assets (Liabilities) As of December 31, 2019 Liquefaction Supply Derivatives $ 51 $ (2 ) $ 49 Liquefaction Supply Derivatives (27 ) 2 (25 ) As of December 31, 2018 Liquefaction Supply Derivatives $ 63 $ (26 ) $ 37 Liquefaction Supply Derivatives (92 ) 12 (80 ) |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Other Non-Current Assets | OTHER NON-CURRENT ASSETS As of December 31, 2019 and 2018 , other non-current assets, net consisted of the following (in millions): December 31, 2019 2018 Advances made to municipalities for water system enhancements $ 87 $ 90 Advances and other asset conveyances to third parties to support LNG terminal 35 36 Operating lease assets 21 — Information technology service prepayments 6 16 Advances made under EPC and non-EPC contracts 15 14 Other 1 2 Total other non-current assets, net $ 165 $ 158 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES As of December 31, 2019 and 2018 , accrued liabilities consisted of the following (in millions): December 31, 2019 2018 Interest costs and related debt fees $ 186 $ 186 Accrued natural gas purchases 325 518 Liquefaction Project costs 116 64 Other accrued liabilities 2 — Total accrued liabilities $ 629 $ 768 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of December 31, 2019 and 2018 , our debt consisted of the following (in millions): December 31, 2019 2018 Long-term debt 5.625% Senior Secured Notes due 2021 (“2021 Senior Notes”) $ 2,000 $ 2,000 6.25% Senior Secured Notes due 2022 (“2022 Senior Notes”) 1,000 1,000 5.625% Senior Secured Notes due 2023 (“2023 Senior Notes”) 1,500 1,500 5.75% Senior Secured Notes due 2024 (“2024 Senior Notes”) 2,000 2,000 5.625% Senior Secured Notes due 2025 (“2025 Senior Notes”) 2,000 2,000 5.875% Senior Secured Notes due 2026 (“2026 Senior Notes”) 1,500 1,500 5.00% Senior Secured Notes due 2027 (“2027 Senior Notes”) 1,500 1,500 4.200% Senior Secured Notes due 2028 (“2028 Senior Notes”) 1,350 1,350 5.00% Senior Secured Notes due 2037 (“2037 Senior Notes”) 800 800 Unamortized discount, premium and debt issuance costs, net (126 ) (150 ) Total long-term debt, net 13,524 13,500 Current debt $1.2 billion Working Capital Facility (“Working Capital Facility”) — — Total debt, net $ 13,524 $ 13,500 Below is a schedule of future principal payments that we are obligated to make on our outstanding debt at December 31, 2019 (in millions): Years Ending December 31, Principal Payments 2020 $ — 2021 2,000 2022 1,000 2023 1,500 2024 2,000 Thereafter 7,150 Total $ 13,650 Senior Notes The terms of the 2021 Senior Notes , 2022 Senior Notes , 2023 Senior Notes , 2024 Senior Notes , 2025 Senior Notes , 2026 Senior Notes , 2027 Senior Notes and 2028 Senior Notes (collectively with the 2037 Senior Notes, the “Senior Notes”) are governed by a common indenture (the “Indenture”) and the terms of the 2037 Senior Notes are governed by a separate indenture (the “ 2037 Senior Notes Indenture”). Both the Indenture and the 2037 Senior Notes Indenture contain customary terms and events of default and certain covenants that, among other things, limit our ability and the ability of our restricted subsidiaries to incur additional indebtedness or issue preferred stock, make certain investments or pay dividends or distributions on capital stock or subordinated indebtedness or purchase, redeem or retire capital stock, sell or transfer assets, including capital stock of our restricted subsidiaries, restrict dividends or other payments by restricted subsidiaries, incur liens, enter into transactions with affiliates, dissolve, liquidate, consolidate, merge, sell or lease all or substantially all of our assets and enter into certain LNG sales contracts. Subject to permitted liens, the Senior Notes are secured on a pari passu first-priority basis by a security interest in all of the membership interests in us and substantially all of our assets. We may not make any distributions until, among other requirements, deposits are made into debt service reserve accounts as required and a debt service coverage ratio test of 1.25 :1.00 is satisfied. Semi-annual principal payments for the 2037 Senior Notes are due on March 15 and September 15 of each year beginning September 15, 2025 and are fully amortizing according to a fixed sculpted amortization schedule. Interest on the Senior Notes is payable semi-annually in arrears. At any time prior to three months before the respective dates of maturity for each series of the Senior Notes (except for the 2026 Senior Notes , 2027 Senior Notes , 2028 Senior Notes and 2037 Senior Notes , in which case the time period is six months before the respective dates of maturity), we may redeem all or part of such series of the Senior Notes at a redemption price equal to the “make-whole” price (except for the 2037 Senior Notes , in which case the redemption price is equal to the “optional redemption” price) set forth in the respective indentures governing the Senior Notes , plus accrued and unpaid interest, if any, to the date of redemption. We may also, at any time within three months of the respective maturity dates for each series of the Senior Notes (except for the 2026 Senior Notes , 2027 Senior Notes , 2028 Senior Notes and 2037 Senior Notes , in which case the time period is within six months of the respective dates of maturity), redeem all or part of such series of the Senior Notes at a redemption price equal to 100% of the principal amount of such series of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to the date of redemption. Working Capital Facility Below is a summary of our Working Capital Facility as of December 31, 2019 (in millions): Working Capital Facility Original facility size $ 1,200 Less: Outstanding balance — Letters of credit issued 414 Available commitment $ 786 Interest rate on available balance LIBOR plus 1.75% or base rate plus 0.75% Weighted average interest rate of outstanding balance n/a Maturity date December 31, 2020 In September 2015, we entered into the Working Capital Facility with aggregate commitments of $1.2 billion , which was amended in May 2019 in connection with commercialization and financing of Train 6 of the Liquefaction Project . The Working Capital Facility is intended to be used for loans (“Working Capital Loans”) , the issuance of letters of credit, as well as for swing line loans (“Swing Line Loans”) , primarily for certain working capital requirements related to developing and placing into operation the Liquefaction Project . We may, from time to time, request increases in the commitments under the Working Capital Facility of up to $760 million and incremental increases in commitments of up to an additional $390 million . Loans under the Working Capital Facility accrue interest at a variable rate per annum equal to LIBOR or the base rate (equal to the highest of the senior facility agent’s published prime rate, the federal funds effective rate, as published by the Federal Reserve Bank of New York, plus 0.50% and one month LIBOR plus 0.50% ), plus the applicable margin. The applicable margin for LIBOR loans under the Working Capital Facility is 1.75% per annum, and the applicable margin for base rate loans under the Working Capital Facility is 0.75% per annum. Interest on Swing Line Loans and loans deemed made in connection with a draw upon a letter of credit (“LC Loans”) is due and payable on the date the loan becomes due. Interest on LIBOR loans is due and payable at the end of each applicable LIBOR period, and interest on base rate loans is due and payable at the end of each fiscal quarter. However, if such base rate loan is converted into a LIBOR loan, interest is due and payable on that date. Additionally, if the loans become due prior to such periods, the interest also becomes due on that date. We pay (1) a commitment fee equal to an annual rate of 0.70% on the average daily amount of the excess of the total commitment amount over the principal amount outstanding without giving effect to any outstanding Swing Line Loans and (2) a letter of credit fee equal to an annual rate of 1.75% of the undrawn portion of all letters of credit issued under the Working Capital Facility . If draws are made upon a letter of credit issued under the Working Capital Facility and we do not elect for such draw (an “LC Draw”) to be deemed an LC Loan, we are required to pay the full amount of the LC Draw on or prior to the business day following the notice of the LC Draw . An LC Draw accrues interest at an annual rate of 2.0% plus the base rate. As of December 31, 2019 , no LC Draw s had been made upon any letters of credit issued under the Working Capital Facility . The Working Capital Facility matures on December 31, 2020, and the outstanding balance may be repaid, in whole or in part, at any time without premium or penalty upon three business days’ notice. LC Loans have a term of up to one year . Swing Line Loans terminate upon the earliest of (1) the maturity date or earlier termination of the Working Capital Facility , (2) the date 15 days after such Swing Line Loan is made and (3) the first borrowing date for a Working Capital Loan or Swing Line Loan occurring at least three business days following the date the Swing Line Loan is made. We are required to reduce the aggregate outstanding principal amount of all Working Capital Loans to zero for a period of five consecutive business days at least once each year. The Working Capital Facility contains conditions precedent for extensions of credit, as well as customary affirmative and negative covenants. Our obligations under the Working Capital Facility are secured by substantially all of our assets as well as all of the membership interests in us on a pari passu basis with the Senior Notes . Restrictive Debt Covenants As of December 31, 2019 , we were in compliance with all covenants related to our debt agreements. Interest Expense Total interest expense consisted of the following (in millions): Year Ended December 31, 2019 2018 2017 Total interest cost $ 790 $ 791 $ 779 Capitalized interest (85 ) (202 ) (285 ) Total interest expense, net $ 705 $ 589 $ 494 Fair Value Disclosures The following table shows the carrying amount and estimated fair value of our debt (in millions): December 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior notes (1) $ 12,850 $ 14,050 $ 12,850 $ 13,235 2037 Senior Notes (2) 800 934 800 817 (1) Includes 2021 Senior Notes , 2022 Senior Notes , 2023 Senior Notes , 2024 Senior Notes , 2025 Senior Notes , 2026 Senior Notes , 2027 Senior Notes and 2028 Senior Notes . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments. (2) |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | REVENUES FROM CONTRACTS WITH CUSTOMERS The following table represents a disaggregation of revenue earned from contracts with customers during the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, 2019 2018 2017 LNG revenues $ 5,210 $ 4,828 $ 2,635 LNG revenues—affiliate 1,312 1,299 1,389 Total revenues from customers 6,522 6,127 4,024 Net derivative gains (losses) (1) 1 (1 ) — Total revenues $ 6,523 $ 6,126 $ 4,024 (1) See Note 7—Derivative Instruments for additional information about our derivatives. LNG Revenues We have entered into numerous SPAs with third party customers for the sale of LNG on a free on board (“FOB”) (delivered to the customer at the Sabine Pass LNG terminal) basis. Our customers generally purchase LNG for a price consisting of a fixed fee per MMBtu of LNG (a portion of which is subject to annual adjustment for inflation) plus a variable fee per MMBtu of LNG equal to approximately 115% of Henry Hub. The fixed fee component is the amount payable to us regardless of a cancellation or suspension of LNG cargo deliveries by the customers. The variable fee component is the amount generally payable to us only upon delivery of LNG plus all future adjustments to the fixed fee for inflation. The SPAs and contracted volumes to be made available under the SPAs are not tied to a specific Train; however, the term of each SPA generally commences upon the date of first commercial delivery of a specified Train. Additionally, we have agreements with Cheniere Marketing for which the related revenues are recorded as LNG revenues—affiliate. See Note 12—Related Party Transactions for additional information regarding these agreements. Revenues from the sale of LNG are recognized at a point in time when the LNG is delivered to the customer, at the Sabine Pass LNG terminal, which is the point legal title, physical possession and the risks and rewards of ownership transfer to the customer. Each individual molecule of LNG is viewed as a separate performance obligation. The stated contract price (including both fixed and variable fees) per MMBtu in each LNG sales arrangement is representative of the stand-alone selling price for LNG at the time the contract was negotiated. We have concluded that the variable fees meet the exception for allocating variable consideration to specific parts of the contract. As such, the variable consideration for these contracts is allocated to each distinct molecule of LNG and recognized when that distinct molecule of LNG is delivered to the customer. Because of the use of the exception, variable consideration related to the sale of LNG is also not included in the transaction price. Fees received pursuant to SPAs are recognized as LNG revenues only after substantial completion of the respective Train. Prior to substantial completion, sales generated during the commissioning phase are offset against the cost of construction for the respective Train, as the production and removal of LNG from storage is necessary to test the facility and bring the asset to the condition necessary for its intended use. Deferred Revenue Reconciliation The following table reflects the changes in our contract liabilities, which we classify as deferred revenue on our Balance Sheets (in millions): Year Ended December 31, 2019 2018 Deferred revenues, beginning of period $ 91 $ 84 Cash received but not yet recognized 132 91 Revenue recognized from prior period deferral (91 ) (84 ) Deferred revenues, end of period $ 132 $ 91 We record deferred revenue when we receive consideration, or such consideration is unconditionally due from a customer, prior to transferring goods or services to the customer under the terms of a sales contract. Changes in deferred revenue during the years ended December 31, 2019 and 2018 are primarily attributable to differences between the timing of revenue recognition and the receipt of advance payments related to delivery of LNG under certain SPAs. Transaction Price Allocated to Future Performance Obligations Because many of our sales contracts have long-term durations, we are contractually entitled to significant future consideration which we have not yet recognized as revenue. The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Weighted Average Recognition Timing (years) (1) LNG revenues (2) $ 55.0 10 $ 53.6 10 (1) The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. (2) Includes future consideration from agreement contractually assigned to us from Cheniere Marketing. We have elected the following exemptions which omit certain potential future sources of revenue from the table above: (1) We omit from the table above all performance obligations that are part of a contract that has an original expected duration of one year or less. (2) We omit from the table above all variable consideration that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation when that performance obligation qualifies as a series. The table above excludes substantially all variable consideration under our SPAs. The amount of revenue from variable fees that is not included in the transaction price will vary based on the future prices of Henry Hub throughout the contract terms, to the extent customers elect to take delivery of their LNG, and adjustments to the consumer price index. Certain of our contracts contain additional variable consideration based on the outcome of contingent events and the movement of various indexes. We have not included such variable consideration in the transaction price to the extent the consideration is considered constrained due to the uncertainty of ultimate pricing and receipt. Approximately 52% and 57% of our LNG revenues during the years ended December 31, 2019 and 2018 , respectively, were related to variable consideration received from customers. All of our LNG revenues—affiliate were related to variable consideration received from customers during each of the years ended December 31, 2019 and 2018 . We have entered into contracts to sell LNG that are conditioned upon one or both of the parties achieving certain milestones such as reaching a final investment decision on a certain liquefaction Train, obtaining financing or achieving substantial completion of a Train and any related facilities. These contracts are considered completed contracts for revenue recognition purposes and are included in the transaction price above when the conditions are considered probable of being met. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Below is a summary of our related party transactions as reported on our Statements of Income for the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, 2019 2018 2017 LNG revenues—affiliate Cheniere Marketing Agreements $ 1,309 $ 1,299 $ 1,389 Contracts for Sale and Purchase of Natural Gas and LNG 3 — — Total LNG revenues—affiliate 1,312 1,299 1,389 Cost of sales—affiliate Cargo loading fees under TUA 40 32 23 Contracts for Sale and Purchase of Natural Gas and LNG 7 — — Total cost of sales—affiliate 47 32 23 Operating and maintenance expense—affiliate TUA 261 256 190 Natural Gas Transportation Agreement 81 80 73 Services Agreements 107 87 65 LNG Site Sublease Agreement 1 — 1 Total operating and maintenance expense—affiliate 450 423 329 General and administrative expense—affiliate Services Agreements 79 50 58 As of December 31, 2019 and 2018 , we had $104 million and $113 million of accounts receivable—affiliate, respectively, under the agreements described below. LNG Terminal-Related Agreements Terminal Use Agreements We have a TUA with SPLNG to provide berthing for LNG vessels and for the unloading, loading, storage and regasification of LNG . We have reserved approximately 2 Bcf/d of regasification capacity and we are obligated to make monthly capacity payments to SPLNG aggregating approximately $250 million per year (the “TUA Fees”) , continuing until at least May 2036. We obtained this reserved capacity as a result of an assignment in July 2012 by Cheniere Investments of its rights, title and interest under its TUA . Cheniere Partners has guaranteed our obligations under our TUA . Cargo loading fees incurred under the TUA are recorded as cost of sales—affiliate, except for the portion related to commissioning activities which is capitalized as LNG terminal construction-in-process. In connection with our TUA , we are required to pay for a portion of the cost (primarily LNG inventory) to maintain the cryogenic readiness of the regasification facilities at the Sabine Pass LNG terminal, which is based on our share of the commercial LNG storage capacity at the Sabine Pass LNG terminal. We are also required to reimburse SPLNG for our proportionate share of ad valorem taxes and certain other costs, which are considered variable consideration that are distinctly attributable to the specific years in the TUA. Cheniere Marketing Agreements Cheniere Marketing SPA Cheniere Marketing has an SPA (“ Base SPA ”) with us to purchase, at Cheniere Marketing’s option, any LNG produced by us in excess of that required for other customers at a price of 115% of Henry Hub plus $3.00 per MMBtu of LNG . In May 2019, we and Cheniere Marketing entered into an amendment to the Base SPA to remove certain conditions related to the sale of LNG from Trains 5 and 6 of the Liquefaction Project and provide that cargoes rejected by Cheniere Marketing under the Base SPA can be sold by us to Cheniere Marketing at a contract price equal to a portion of the estimated net profits from the sale of such cargo. Cheniere Marketing Master SPA We have an agreement with Cheniere Marketing that allows us to sell and purchase LNG with Cheniere Marketing by executing and delivering confirmations under this agreement. We executed a confirmation with Cheniere Marketing that obligated Cheniere Marketing in certain circumstances to buy LNG cargoes produced during the period while Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”) had control of, and was commissioning, Train 5 of the Liquefaction Project . Cheniere Marketing Letter Agreements In May 2019, SPL and Cheniere Marketing entered into a letter agreement for the sale of up to 20 cargoes totaling approximately 70 million MMBtu that were delivered between May 3 and December 31, 2019 at a price of 115% of Henry Hub plus $2.00 per MMBtu. In December 2019, we and Cheniere Marketing entered into a letter agreement for the sale of up to 43 cargoes scheduled for delivery in 2020 at a price of 115% of Henry Hub plus $1.67 per MMBtu. Natural Gas Transportation Agreements To ensure we are able to transport adequate natural gas feedstock to the Sabine Pass LNG terminal, we have a transportation precedent agreement, firm transportation service agreement and a negotiated rate agreement to secure firm pipeline transportation capacity with CTPL, a wholly owned subsidiary of Cheniere Partners, and third-party pipeline companies. These agreements have a primary term that continues until 20 years from May 2016 and thereafter continue in effect from year to year until terminated by either party upon written notice of one year or the term of the agreements, whichever is less. In addition, we have the right to elect to extend the term of the agreements for up to two consecutive terms of 10 years . Maximum rates, charges and fees shall be applicable for the entitlements and quantities delivered pursuant to the agreements unless CTPL has advised us that it has agreed otherwise. Services Agreements As of December 31, 2019 and 2018 , we had $133 million and $210 million of advances to affiliates, respectively, under the services agreements described below. The non-reimbursement amounts incurred under these agreements are recorded in general and administrative expense—affiliate. Cheniere Investments Information Technology Services Agreement Cheniere Investments has an information technology services agreement with Cheniere, pursuant to which Cheniere Investments’ subsidiaries, including us, receive certain information technology services. On a quarterly basis, the various entities receiving the benefit are invoiced by Cheniere Investments according to the cost allocation percentages set forth in the agreement. In addition, Cheniere is entitled to reimbursement for all costs incurred by Cheniere that are necessary to perform the services under the agreement. Liquefaction O&M Agreement We have an operation and maintenance agreement (the “Liquefaction O&M Agreement”) with Cheniere Investments, a wholly owned subsidiary of Cheniere Partners, pursuant to which we receive all of the necessary services required to construct, operate and maintain the Liquefaction Project . Before each Train of the Liquefaction Project is operational, the services to be provided include, among other services, obtaining governmental approvals on our behalf, preparing an operating plan for certain periods, obtaining insurance, preparing staffing plans and preparing status reports. After each Train is operational, the services include all necessary services required to operate and maintain the Train. Prior to the substantial completion of each Train of the Liquefaction Project , in addition to reimbursement of operating expenses, we are required to pay a monthly fee equal to 0.6% of the capital expenditures incurred in the previous month. After substantial completion of each Train, for services performed while the Train is operational, we will pay, in addition to the reimbursement of operating expenses, a fixed monthly fee of $83,333 (indexed for inflation) for services with respect to the Train. Liquefaction MSA We have a management services agreement (the “Liquefaction MSA”) with Cheniere Terminals pursuant to which Cheniere Terminals manages the construction and operation of the Liquefaction Project , excluding those matters provided for under the Liquefaction O&M Agreement . The services include, among other services, exercising the day-to-day management of our affairs and business, managing our regulatory matters, managing bank and brokerage accounts and financial books and records of our business and operations, entering into financial derivatives on our behalf and providing contract administration services for all contracts associated with the Liquefaction Project . Prior to the substantial completion of each Train of the Liquefaction Project , we pay a monthly fee equal to 2.4% of the capital expenditures incurred in the previous month. After substantial completion of each Train, we will pay a fixed monthly fee of $541,667 (indexed for inflation) for services with respect to such Train. LNG Site Sublease Agreement We have agreements with SPLNG to sublease a portion of the Sabine Pass LNG terminal site for the Liquefaction Project . The aggregate annual sublease payment is $1 million . The initial terms of the subleases expire on December 31, 2034, with options to renew for multiple periods of 10 years with similar terms as the initial terms. The annual sublease payments will be adjusted for inflation every five years based on a consumer price index, as defined in the sublease agreements. Cooperation Agreement We have a cooperation agreement with SPLNG that allows us to retain and acquire certain rights to access the property and facilities that are owned by SPLNG for the purpose of constructing, modifying and operating the Liquefaction Project . In consideration for access given to us, we have agreed to transfer to SPLNG title of certain facilities, equipment and modifications, which SPLNG is obligated to operate and maintain. The term of this agreement is consistent with our TUA described above. We conveyed $351 million in assets to SPLNG under this agreement during the year ended December 31, 2019 . We did no t convey any assets to SPLNG under this agreement during the years ended December 31, 2018 and 2017 . Contracts for Sale and Purchase of Natural Gas and LNG We have agreements with SPLNG, CTPL and CCL that allow us to sell and purchase natural gas and LNG with each party. Natural gas purchased under these agreements is initially recorded as inventory and then to cost of sales—affiliate upon its sale, except for purchases related to commissioning activities which are capitalized as LNG terminal construction-in-process. Natural gas sold under these agreements is recorded as LNG revenues—affiliate. State Tax Sharing Agreement We have a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which we and Cheniere are required to file on a combined basis and to timely pay the combined state and local tax liability. If Cheniere, in its sole discretion, demands payment, we will pay to Cheniere an amount equal to the state and local tax that we would be required to pay if our state and local tax liability were calculated on a separate company basis. There have been no state and local taxes paid by Cheniere for which Cheniere could have demanded payment from us under this agreement; therefore, Cheniere has not demanded any such payments from us. The agreement is effective for tax returns due on or after August 2012. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We have various contractual obligations which are recorded as liabilities in our Financial Statements. Other items, such as certain purchase commitments and other executed contracts which do not meet the definition of a liability as of December 31, 2019 , are not recognized as liabilities but require disclosures in our Financial Statements. LNG Terminal Commitments and Contingencies Obligations under EPC Contract We have a lump sum turnkey contract with Bechtel for the engineering, procurement and construction of Train 6 of the Liquefaction Project. The EPC contract price for Train 6 of the Liquefaction Project is approximately $2.5 billion , reflecting amounts incurred under change orders through December 31, 2019 , and including estimated costs for an optional third marine berth. As of December 31, 2019 , we have incurred $1.1 billion under this contract. We have the right to terminate the EPC contract for our convenience, in which case Bechtel will be paid (1) the portion of the contract price for the work performed, (2) costs reasonably incurred by Bechtel on account of such termination and demobilization and (3) a lump sum of up to $30 million depending on the termination date. Obligations under SPAs We have third-party SPAs which obligate us to purchase and liquefy sufficient quantities of natural gas to deliver contracted volumes of LNG to the customers’ vessels, subject to completion of construction of specified Trains of the Liquefaction Project. Obligations under Natural Gas Supply, Transportation and Storage Service Agreements We have physical natural gas supply contracts to secure natural gas feedstock for the Liquefaction Project. The remaining terms of these contracts range up to 10 years , some of which commence upon the satisfaction of certain events or states of affairs. As of December 31, 2019 , we have secured up to approximately 3,850 TBtu of natural gas feedstock through natural gas supply contracts, a portion of which are considered purchase obligations if the certain events or states of affairs are satisfied. Additionally, we have natural gas transportation and storage service agreements for the Liquefaction Project. The initial term of the natural gas transportation agreements ranges up to 20 years , with renewal options for certain contracts, and commences upon the occurrence of conditions precedent. The initial terms of our natural gas storage service agreements range up to 10 years . As of December 31, 2019 , our obligations under natural gas supply, transportation and storage service agreements for contracts in which conditions precedent were met were as follows (in millions): Years Ending December 31, Payments Due (1) 2020 $ 2,329 2021 1,416 2022 931 2023 722 2024 401 Thereafter 2,871 Total $ 8,670 (1) Pricing of natural gas supply contracts are variable based on market commodity basis prices adjusted for basis spread . Amounts included are based on estimated forward prices and basis spreads as of December 31, 2019 . Some of our contracts may not have been negotiated as part of arranging financing for the underlying assets providing the natural gas supply, transportation and storage services. Obligations under LNG TUAs We have a TUA with SPLNG pursuant to which we have reserved approximately 2 Bcf/d of regasification capacity. See Note 12—Related Party Transactions for additional information regarding this TUA. Additionally, we have a partial TUA assignment agreement with Total Gas & Power North America, Inc. (“Total”), another TUA customer, whereby upon substantial completion of Train 5, we gained access to substantially all of Total’s capacity and other services provided under Total’s TUA with SPLNG. This agreement provides us with additional berthing and storage capacity at the Sabine Pass LNG terminal that may be used to provide increased flexibility in managing LNG cargo loading and unloading activity, permit us to more flexibly manage our LNG storage capacity and accommodate the development of Train 6. Notwithstanding any arrangements between Total and us, payments required to be made by Total to SPLNG will continue to be made by Total to SPLNG in accordance with its TUA. Services Agreements We have certain services agreements with affiliates. See Note 12—Related Party Transactions for information regarding such agreements. Other Commitments State Tax Sharing Agreements We have state tax sharing agreements with Cheniere. See Note 12—Related Party Transactions for information regarding such agreements. Other Agreements In the ordinary course of business, we have entered into certain multi-year licensing and service agreements, none of which are considered material to our financial position. Environmental and Regulatory Matters The Liquefaction Project is subject to extensive regulation under federal, state and local statutes, rules, regulations and laws. These laws require that we engage in consultations with appropriate federal and state agencies and that we obtain and maintain applicable permits and other authorizations. Failure to comply with such laws could result in legal proceedings, which may include substantial penalties. We believe that, based on currently known information, compliance with these laws and regulations will not have a material adverse effect on our results of operations, financial condition or cash flows. Legal Proceedings We may in the future be involved as a party to various legal proceedings, which are incidental to the ordinary course of business. We regularly analyze current information and, as necessary, provide accruals for probable liabilities on the eventual disposition of these matters. In the opinion of management, as of December 31, 2019 , there were no |
Customer Concentration
Customer Concentration | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | CUSTOMER CONCENTRATION The following table shows customers with revenues of 10% or greater of total revenues from external customers and customers with accounts receivable balances of 10% or greater of total accounts receivable from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable from External Customers Year Ended December 31, December 31, 2019 2018 2017 2019 2018 Customer A 29% 30% 43% 22% 35% Customer B 19% 23% 30% 13% 23% Customer C 21% 24% 25% 22% 30% Customer D 21% 20% —% 13% * Customer E * —% —% 13% —% Customer F * —% —% 14% —% * Less than 10% The following table shows revenues from external customers attributable to the country in which the revenues were derived (in millions). We attribute revenues from external customers to the country in which the party to the applicable agreement has its principal place of business. Substantially all of our long-lived assets are located in the United States. Revenues from External Customers Year Ended December 31, 2019 2018 2017 United States $ 2,039 $ 1,580 $ 1,161 India 1,113 981 — South Korea 1,071 1,168 666 Ireland 988 1,098 787 Other countries — — 21 Total $ 5,211 $ 4,827 $ 2,635 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental disclosure of cash flow information (in millions): Year Ended December 31, 2019 2018 2017 Cash paid during the period for interest, net of amounts capitalized $ 678 $ 604 $ 438 Non-cash distributions to affiliates for conveyance of assets 351 — — The balance in property, plant and equipment, net funded with accounts payable and accrued liabilities (including affiliate) was $276 million , $256 million and $268 million as of December 31, 2019 , 2018 and 2017 , respectively. |
Summarized Quarterly Financial
Summarized Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Data (unaudited) | Summarized Quarterly Financial Data—(in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2019: Revenues $ 1,672 $ 1,626 $ 1,397 $ 1,828 Income from operations 453 340 228 547 Net income 308 150 48 367 Year Ended December 31, 2018: Revenues $ 1,518 $ 1,333 $ 1,454 $ 1,821 Income from operations 391 339 384 406 Net income 242 193 243 266 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation Our Financial Statements have been prepared in accordance with GAAP . Certain reclassifications have been made to conform prior period information to the current presentation. The reclassifications did not have a material effect on our financial position, results of operations or cash flows. |
Recent Accounting Standards | Recent Accounting Standards We adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , and subsequent amendments thereto on January 1, 2019 using the optional transition approach to apply the standard at the beginning of the first quarter of 2019 with no retrospective adjustments to prior periods. This standard requires a lessee to recognize leases on its balance sheet by recording a lease liability representing the obligation to make future lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The adoption of the standard did not materially impact our Financial Statements. Upon adoption of the standard we recorded right-of-use assets of $20 million in other non-current assets, net, and lease liabilities of $4 million in other non-current liabilities and $16 million in other non-current liabilities—affiliate. |
Use of Estimates, Policy | Use of Estimates The preparation of Financial Statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the Financial Statements and the accompanying notes. Management evaluates its estimates and related assumptions regularly, including those related to fair value measurements, revenue recognition, property, plant and equipment, derivative instruments and asset retirement obligations (“AROs”) , as further discussed under the respective sections within this note. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates. |
Fair Value Measurements, Policy | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2 and 3 are terms for the priority of inputs to valuation approaches used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy Level 2 inputs are inputs that are directly or indirectly observable for the asset or liability, other than quoted prices included within Level 1. Hierarchy Level 3 inputs are inputs that are not observable in the market. In determining fair value, we use observable market data when available, or models that incorporate observable market data. In addition to market information, we incorporate transaction-specific details that, in management’s judgment, market participants would take into account in measuring fair value. We maximize the use of observable inputs and minimize our use of unobservable inputs in arriving at fair value estimates. Recurring fair-value measurements are performed for derivative instruments as disclosed in Note 7—Derivative Instruments . The carrying amount of cash and cash equivalents, restricted cash, accounts receivable and accounts payable reported on the Balance Sheets approximates fair value. The fair value of debt is the estimated amount we would have to pay to repurchase our debt in the open market, including any premium or discount attributable to the difference between the stated interest rate and market interest rate at each balance sheet date. Debt fair values, as disclosed in Note 10—Debt , are based on quoted market prices for identical instruments, if available, or based on valuations of similar debt instruments using observable or unobservable inputs. Non-financial assets and liabilities initially measured at fair value include intangible assets and AROs. |
Revenue Recognition, Policy | Revenue Recognition We recognize revenues when we transfer control of promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. Revenues from the sale of LNG are recognized as LNG revenues. See Note 11—Revenues from Contracts with Customers for further discussion of revenues. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Restricted Cash, Policy | Restricted Cash Restricted cash consists of funds that are contractually or legally restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our Balance Sheets. |
Accounts Receivable, Policy | Accounts Receivable Accounts receivable is reported net of any allowances for doubtful accounts. We periodically review the collectability on our accounts receivable and recognize an allowance if there is probability of non-collection, based on historical write-off and customer-specific factors. We did no t have an allowance on our accounts receivable as of December 31, 2019 and 2018 . |
Inventory, Policy | Inventory LNG and natural gas inventory are recorded at the lower of weighted average cost and net realizable value. Materials and other inventory are recorded at the lower of cost and net realizable value and subsequently charged to expense when issued. |
Accounting For LNG Activities, Policy | Accounting for LNG Activities Generally, we begin capitalizing the costs of a Train once it meets the following criteria: (1) regulatory approval has been received, (2) financing for the Train is available and (3) management has committed to commence construction. Prior to meeting these criteria, most of the costs associated with a Train are expensed as incurred. These costs primarily include professional fees associated with preliminary front-end engineering and design work, costs of securing necessary regulatory approvals and other preliminary investigation and development activities related to the Train. Generally, costs that are capitalized prior to a project meeting the criteria otherwise necessary for capitalization include: land acquisition costs, detailed engineering design work and certain permits that are capitalized as other non-current assets. The costs of lease options are amortized over the life of the lease once obtained. If no land or lease is obtained, the costs are expensed. |
Property, Plant and Equipment, Policy | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Expenditures for construction and commissioning activities, major renewals and betterments that extend the useful life of an asset are capitalized, while expenditures for maintenance and repairs (including those for planned major maintenance projects) to maintain property, plant and equipment in operating condition are generally expensed as incurred. We realize offsets to LNG terminal costs for sales of commissioning cargoes that were earned or loaded prior to the start of commercial operations of the respective Train during the testing phase for its construction. We depreciate our property, plant and equipment using the straight-line depreciation method. Upon retirement or other disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the account, and the resulting gains or losses are recorded in impairment expense and loss (gain) on disposal of assets. Management tests property, plant and equipment for impairment whenever events or changes in circumstances have indicated that the carrying amount of property, plant and equipment might not be recoverable. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets for purposes of assessing recoverability. Recoverability generally is determined by comparing the carrying value of the asset to the expected undiscounted future cash flows of the asset. If the carrying value of the asset is not recoverable, the amount of impairment loss is measured as the excess, if any, of the carrying value of the asset over its estimated fair value. |
Interest Capitalization, Policy | Interest Capitalization We capitalize interest costs during the construction period of our LNG terminal and related assets as construction-in-process. Upon commencement of operations, these costs are transferred out of construction-in-process into terminal and interconnecting pipeline facilities assets and are amortized over the estimated useful life of the asset. |
Derivative Instruments, Policy | Derivative Instruments We use derivative instruments to hedge our exposure to cash flow variability from commodity price risk. Derivative instruments are recorded at fair value and included in our Balance Sheets as assets or liabilities depending on the derivative position and the expected timing of settlement, unless they satisfy criteria for and we elect the normal purchases and sales exception. When we have the contractual right and intend to net settle, derivative assets and liabilities are reported on a net basis. Changes in the fair value of our derivative instruments are recorded in earnings, unless we elect to apply hedge accounting and meet specified criteria. We did no t have any derivative instruments designated as cash flow or fair value hedges during the years ended December 31, 2019, 2018 and 2017 . See Note 7—Derivative Instruments for additional details about our derivative instruments. |
Concentration of Credit Risk, Policy | Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents, restricted cash, derivative instruments and accounts receivable. We maintain cash balances at financial institutions, which may at times be in excess of federally insured levels. We have not incurred losses related to these balances to date. The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments. Certain of our commodity derivative transactions are executed through over-the-counter contracts which are subject to nominal credit risk as these transactions are settled on a daily margin basis with investment grade financial institutions. Collateral deposited for such contracts is recorded within other current assets. We monitor counterparty creditworthiness on an ongoing basis; however, we cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, we may be limited in our ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, we may not realize the benefit of some of our derivative instruments. We have entered into fixed price long-term SPAs generally with terms of 20 years with eight third parties and have entered into agreements with Cheniere Marketing. We are dependent on the respective customers’ creditworthiness and their willingness to perform under their respective SPAs. See Note 14—Customer Concentration for additional details about our customer concentration. |
Debt, Policy | Debt Our debt consists of current and long-term secured and unsecured debt securities and credit facilities with banks and other lenders. Debt issuances are placed directly by us or through securities dealers or underwriters and are held by institutional and retail investors. Debt is recorded on our Balance Sheets at par value adjusted for unamortized discount or premium and net of unamortized debt issuance costs related to term notes. Debt issuance costs consist primarily of arrangement fees, professional fees, legal fees and printing costs. If debt issuance costs are incurred in connection with a line of credit arrangement or on undrawn funds, they are presented as an asset on our Balance Sheets. Discounts, premiums and debt issuance costs directly related to the issuance of debt are amortized over the life of the debt and are recorded in interest expense, net of capitalized interest using the effective interest method. Gains and losses on the extinguishment or modification of debt are recorded in gain (loss) on modification or extinguishment of debt on our Statements of Income . |
Asset Retirement Obligations, Policy | Asset Retirement Obligations We recognize AROs for legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal use of the asset and for conditional AROs in which the timing or method of settlement are conditional on a future event that may or may not be within our control. The fair value of a liability for an ARO is recognized in the period in which it is incurred, if a reasonable estimate of fair value can be made. The fair value of the liability is added to the carrying amount of the associated asset. This additional carrying amount is depreciated over the estimated useful life of the asset. We have no t recorded an ARO associated with the Sabine Pass LNG terminal. Based on the real property lease agreements at the Sabine Pass LNG terminal, at the expiration of the term of the leases we are required to surrender the LNG terminal in good working order and repair, with normal wear and tear and casualty expected. Our property lease agreements at the Sabine Pass LNG terminal have terms of up to 90 years including renewal options. We have determined that the cost to surrender the liquefaction facilities at the Sabine Pass LNG terminal in good order and repair, with normal wear and tear and casualty expected, is immaterial. |
Income Taxes, Policy | Income Taxes We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Statements of Income , is able to be included in the federal income tax return of Cheniere Partners, a publicly traded partnership which indirectly owns us. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Financial Statements. At December 31, 2019 , the tax basis of our assets and liabilities was $4.6 billion less than the reported amounts of our assets and liabilities. Pursuant to the indentures governing our debt, we are permitted to make distributions (“Tax Distributions”) for any fiscal year or portion thereof in which we are a limited partnership, disregarded entity or other substantially similar pass-through entity for federal and state income tax purposes. The Tax Distributions are equal to the tax that we would owe if we were a corporation subject to federal and state income tax that filed separate federal and state income tax returns, excluding the amounts covered by the state tax sharing agreement discussed in Note 12—Related Party Transactions . The Tax Distributions are limited to the amount of federal and/or state income taxes paid by Cheniere to the appropriate taxing authorities and are payable by us within 30 days of the date that Cheniere is required to make federal or state income tax payments to the appropriate taxing authorities. |
Business Segment, Policy | Business Segment Our liquefaction operations at the Sabine Pass LNG terminal represent a single reportable segment. Our chief operating decision maker reviews the financial results of SPL in total when evaluating financial performance and for purposes of allocating resources. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Cash [Abstract] | |
Schedule of Restricted Cash | As of December 31, 2019 and 2018 , restricted cash consisted of the following (in millions): December 31, 2019 2018 Current restricted cash Liquefaction Project $ 181 $ 756 |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | As of December 31, 2019 and 2018 , accounts and other receivables consisted of the following (in millions): December 31, 2019 2018 Trade receivable $ 283 $ 330 Other accounts receivable 9 16 Total accounts and other receivables $ 292 $ 346 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of December 31, 2019 and 2018 , inventory consisted of the following (in millions): December 31, 2019 2018 Natural gas $ 9 $ 28 LNG 27 6 Materials and other 67 53 Total inventory $ 103 $ 87 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of December 31, 2019 and 2018 , property, plant and equipment, net consisted of the following (in millions): December 31, 2019 2018 LNG terminal costs LNG terminal $ 13,736 $ 10,004 LNG terminal construction-in-process 1,222 3,866 Accumulated depreciation (1,104 ) (667 ) Total LNG terminal costs, net 13,854 13,203 Fixed assets Fixed assets 18 14 Accumulated depreciation (11 ) (8 ) Total fixed assets, net 7 6 Property, plant and equipment, net $ 13,861 $ 13,209 |
Property Plant and Equipment Estimated Useful Lives Table [Table Text Block] | The identifiable components of the Liquefaction Project have depreciable lives between 7 and 50 years, as follows: Components Useful life (yrs) Water pipelines 30 Liquefaction processing equipment 7-50 Other 10-30 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value of Derivative Assets and Liabilities | The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis as of December 31, 2019 and 2018 , which are classified as derivative assets , non-current derivative assets , derivative liabilities or non-current derivative liabilities in our Balance Sheets (in millions): Fair Value Measurements as of December 31, 2019 December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Liquefaction Supply Derivatives asset (liability) $ 3 $ (3 ) $ 24 $ 24 $ 5 $ (23 ) $ (25 ) $ (43 ) |
Fair Value Measurement Inputs and Valuation Techniques | The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of December 31, 2019 : Net Fair Value Asset (in millions) Valuation Approach Significant Unobservable Input Significant Unobservable Inputs Range Physical Liquefaction Supply Derivatives $24 Market approach incorporating present value techniques Henry Hub basis spread $(0.350) - $0.058 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table shows the changes in the fair value of our Level 3 Physical Liquefaction Supply Derivatives during the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, 2019 2018 2017 Balance, beginning of period $ (25 ) $ 43 $ 79 Realized and mark-to-market gains (losses): Included in cost of sales 6 (3 ) (37 ) Purchases and settlements: Purchases — (37 ) 14 Settlements 42 (29 ) (12 ) Transfers out of Level 3 (1) 1 1 (1 ) Balance, end of period $ 24 $ (25 ) $ 43 Change in unrealized gains (losses) relating to instruments still held at end of period $ 6 $ (3 ) $ (37 ) (1) Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. |
Fair Value of Derivative Instruments by Balance Sheet Location | The following table shows the fair value and location of our Liquefaction Supply Derivatives on our Balance Sheets (in millions): Fair Value Measurements as of (1) Balance Sheet Location December 31, 2019 December 31, 2018 Derivative assets $ 17 $ 6 Non-current derivative assets 32 31 Total derivative assets 49 37 Derivative liabilities (9 ) (66 ) Non-current derivative liabilities (16 ) (14 ) Total derivative liabilities (25 ) (80 ) Derivative asset (liability), net $ 24 $ (43 ) (1) Does not include collateral posted with counterparties by us of $2 million and $1 million for such contracts, which are included in other current assets in our Balance Sheets as of December 31, 2019 and 2018 , respectively. |
Derivative Net Presentation on Balance Sheets | The following table shows the fair value of our derivatives outstanding on a gross and net basis (in millions): Gross Amounts Recognized Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets Offsetting Derivative Assets (Liabilities) As of December 31, 2019 Liquefaction Supply Derivatives $ 51 $ (2 ) $ 49 Liquefaction Supply Derivatives (27 ) 2 (25 ) As of December 31, 2018 Liquefaction Supply Derivatives $ 63 $ (26 ) $ 37 Liquefaction Supply Derivatives (92 ) 12 (80 ) |
Interest Rate Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Instruments, Gain (Loss) | The following table shows the changes in the fair value and settlements of our Interest Rate Derivatives recorded in derivative loss, net on our Statements of Income during the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, 2019 2018 2017 Interest Rate Derivatives loss $ — $ — $ (2 ) |
Liquefaction Supply Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Instruments, Gain (Loss) | The following table shows the changes in the fair value, settlements and location of our Liquefaction Supply Derivatives recorded on our Statements of Income during the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, Statement of Income Location (1) 2019 2018 2017 Liquefaction Supply Derivatives gain (loss) LNG revenues $ 1 $ (1 ) $ — Liquefaction Supply Derivatives gain (loss) Cost of sales 71 (100 ) (24 ) (1) Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Non-Current Assets | As of December 31, 2019 and 2018 , other non-current assets, net consisted of the following (in millions): December 31, 2019 2018 Advances made to municipalities for water system enhancements $ 87 $ 90 Advances and other asset conveyances to third parties to support LNG terminal 35 36 Operating lease assets 21 — Information technology service prepayments 6 16 Advances made under EPC and non-EPC contracts 15 14 Other 1 2 Total other non-current assets, net $ 165 $ 158 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | As of December 31, 2019 and 2018 , accrued liabilities consisted of the following (in millions): December 31, 2019 2018 Interest costs and related debt fees $ 186 $ 186 Accrued natural gas purchases 325 518 Liquefaction Project costs 116 64 Other accrued liabilities 2 — Total accrued liabilities $ 629 $ 768 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | As of December 31, 2019 and 2018 , our debt consisted of the following (in millions): December 31, 2019 2018 Long-term debt 5.625% Senior Secured Notes due 2021 (“2021 Senior Notes”) $ 2,000 $ 2,000 6.25% Senior Secured Notes due 2022 (“2022 Senior Notes”) 1,000 1,000 5.625% Senior Secured Notes due 2023 (“2023 Senior Notes”) 1,500 1,500 5.75% Senior Secured Notes due 2024 (“2024 Senior Notes”) 2,000 2,000 5.625% Senior Secured Notes due 2025 (“2025 Senior Notes”) 2,000 2,000 5.875% Senior Secured Notes due 2026 (“2026 Senior Notes”) 1,500 1,500 5.00% Senior Secured Notes due 2027 (“2027 Senior Notes”) 1,500 1,500 4.200% Senior Secured Notes due 2028 (“2028 Senior Notes”) 1,350 1,350 5.00% Senior Secured Notes due 2037 (“2037 Senior Notes”) 800 800 Unamortized discount, premium and debt issuance costs, net (126 ) (150 ) Total long-term debt, net 13,524 13,500 Current debt $1.2 billion Working Capital Facility (“Working Capital Facility”) — — Total debt, net $ 13,524 $ 13,500 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Below is a schedule of future principal payments that we are obligated to make on our outstanding debt at December 31, 2019 (in millions): Years Ending December 31, Principal Payments 2020 $ — 2021 2,000 2022 1,000 2023 1,500 2024 2,000 Thereafter 7,150 Total $ 13,650 |
Schedule of Line of Credit Facilities | Below is a summary of our Working Capital Facility as of December 31, 2019 (in millions): Working Capital Facility Original facility size $ 1,200 Less: Outstanding balance — Letters of credit issued 414 Available commitment $ 786 Interest rate on available balance LIBOR plus 1.75% or base rate plus 0.75% Weighted average interest rate of outstanding balance n/a Maturity date December 31, 2020 |
Schedule of Interest Expense | Total interest expense consisted of the following (in millions): Year Ended December 31, 2019 2018 2017 Total interest cost $ 790 $ 791 $ 779 Capitalized interest (85 ) (202 ) (285 ) Total interest expense, net $ 705 $ 589 $ 494 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table shows the carrying amount and estimated fair value of our debt (in millions): December 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior notes (1) $ 12,850 $ 14,050 $ 12,850 $ 13,235 2037 Senior Notes (2) 800 934 800 817 (1) Includes 2021 Senior Notes , 2022 Senior Notes , 2023 Senior Notes , 2024 Senior Notes , 2025 Senior Notes , 2026 Senior Notes , 2027 Senior Notes and 2028 Senior Notes . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments. (2) |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a disaggregation of revenue earned from contracts with customers during the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, 2019 2018 2017 LNG revenues $ 5,210 $ 4,828 $ 2,635 LNG revenues—affiliate 1,312 1,299 1,389 Total revenues from customers 6,522 6,127 4,024 Net derivative gains (losses) (1) 1 (1 ) — Total revenues $ 6,523 $ 6,126 $ 4,024 (1) See Note 7—Derivative Instruments for additional information about our derivatives. |
Contract Balances Reconciliation | The following table reflects the changes in our contract liabilities, which we classify as deferred revenue on our Balance Sheets (in millions): Year Ended December 31, 2019 2018 Deferred revenues, beginning of period $ 91 $ 84 Cash received but not yet recognized 132 91 Revenue recognized from prior period deferral (91 ) (84 ) Deferred revenues, end of period $ 132 $ 91 |
Transaction Price Allocated to Future Performance Obligations | The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Weighted Average Recognition Timing (years) (1) LNG revenues (2) $ 55.0 10 $ 53.6 10 (1) The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. (2) Includes future consideration from agreement contractually assigned to us from Cheniere Marketing. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Below is a summary of our related party transactions as reported on our Statements of Income for the years ended December 31, 2019, 2018 and 2017 (in millions): Year Ended December 31, 2019 2018 2017 LNG revenues—affiliate Cheniere Marketing Agreements $ 1,309 $ 1,299 $ 1,389 Contracts for Sale and Purchase of Natural Gas and LNG 3 — — Total LNG revenues—affiliate 1,312 1,299 1,389 Cost of sales—affiliate Cargo loading fees under TUA 40 32 23 Contracts for Sale and Purchase of Natural Gas and LNG 7 — — Total cost of sales—affiliate 47 32 23 Operating and maintenance expense—affiliate TUA 261 256 190 Natural Gas Transportation Agreement 81 80 73 Services Agreements 107 87 65 LNG Site Sublease Agreement 1 — 1 Total operating and maintenance expense—affiliate 450 423 329 General and administrative expense—affiliate Services Agreements 79 50 58 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Purchase Commitment [Line Items] | |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | As of December 31, 2019 , our obligations under natural gas supply, transportation and storage service agreements for contracts in which conditions precedent were met were as follows (in millions): Years Ending December 31, Payments Due (1) 2020 $ 2,329 2021 1,416 2022 931 2023 722 2024 401 Thereafter 2,871 Total $ 8,670 (1) Pricing of natural gas supply contracts are variable based on market commodity basis prices adjusted for basis spread . Amounts included are based on estimated forward prices and basis spreads as of December 31, 2019 . Some of our contracts may not have been negotiated as part of arranging financing for the underlying assets providing the natural gas supply, transportation and storage services. |
Customer Concentration (Tables)
Customer Concentration (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue and Accounts Receivable by Major Customers | The following table shows customers with revenues of 10% or greater of total revenues from external customers and customers with accounts receivable balances of 10% or greater of total accounts receivable from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable from External Customers Year Ended December 31, December 31, 2019 2018 2017 2019 2018 Customer A 29% 30% 43% 22% 35% Customer B 19% 23% 30% 13% 23% Customer C 21% 24% 25% 22% 30% Customer D 21% 20% —% 13% * Customer E * —% —% 13% —% Customer F * —% —% 14% —% * Less than 10% |
Schedule of Revenue from External Customers by Country | The following table shows revenues from external customers attributable to the country in which the revenues were derived (in millions). We attribute revenues from external customers to the country in which the party to the applicable agreement has its principal place of business. Substantially all of our long-lived assets are located in the United States. Revenues from External Customers Year Ended December 31, 2019 2018 2017 United States $ 2,039 $ 1,580 $ 1,161 India 1,113 981 — South Korea 1,071 1,168 666 Ireland 988 1,098 787 Other countries — — 21 Total $ 5,211 $ 4,827 $ 2,635 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides supplemental disclosure of cash flow information (in millions): Year Ended December 31, 2019 2018 2017 Cash paid during the period for interest, net of amounts capitalized $ 678 $ 604 $ 438 Non-cash distributions to affiliates for conveyance of assets 351 — — |
Summarized Quarterly Financia_2
Summarized Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized Quarterly Financial Data—(in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Year Ended December 31, 2019: Revenues $ 1,672 $ 1,626 $ 1,397 $ 1,828 Income from operations 453 340 228 547 Net income 308 150 48 367 Year Ended December 31, 2018: Revenues $ 1,518 $ 1,333 $ 1,454 $ 1,821 Income from operations 391 339 384 406 Net income 242 193 243 266 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2019milliontonnes / yrmemberstrains | |
Organization And Nature Of Operations [Line Items] | |
Limited Liability Company (LLC), Number Of Members | members | 1 |
Sabine Pass LNG Terminal [Member] | |
Organization And Nature Of Operations [Line Items] | |
Number of Liquefaction LNG Trains Operating | 5 |
Number of Liquefaction LNG Trains Constructing | 1 |
Total Production Capability | milliontonnes / yr | 30 |
Cheniere [Member] | Cheniere Partners [Member] | |
Organization And Nature Of Operations [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 48.60% |
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 100.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)unitcustomer | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease assets | $ 21,000,000 | $ 0 | ||
Accounts Receivable, Allowance for Credit Loss, Current | 0 | 0 | ||
Derivative instruments designated as cash flow hedges | 0 | $ 0 | $ 0 | |
Income Tax Expense | 0 | |||
Taxes, Difference in Bases, Amount | $ 4,600,000,000 | |||
Number of Reportable Segments | unit | 1 | |||
Sabine Pass LNG Terminal [Member] | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Asset Retirement Obligation | $ 0 | |||
Customer Concentration Risk [Member] | SPA Customers [Member] | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
SPA, Term of Agreement | 20 years | |||
Concentration Risk, Number of Significant Customers | customer | 8 | |||
Maximum [Member] | Sabine Pass LNG Terminal [Member] | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Property Lease Term | 90 years | |||
Other Noncurrent Assets [Member] | Accounting Standards Update 2016-02 [Member] | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease assets | $ 20,000,000 | |||
Other Noncurrent Liabilities [Member] | Accounting Standards Update 2016-02 [Member] | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease liabilities | 4,000,000 | |||
Other Noncurrent Liabilities Related Party [Member] | Accounting Standards Update 2016-02 [Member] | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease liabilities | $ 16,000,000 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 181 | $ 756 |
Liquefaction Project [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 181 | $ 756 |
Accounts and Other Receivable_2
Accounts and Other Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Trade receivable | $ 283 | $ 330 |
Other accounts receivable | 9 | 16 |
Total accounts and other receivables | $ 292 | $ 346 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Inventory | $ 103 | $ 87 |
Natural gas [Member] | ||
Inventory [Line Items] | ||
Inventory | 9 | 28 |
LNG [Member] | ||
Inventory [Line Items] | ||
Inventory | 27 | 6 |
Materials and other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 67 | $ 53 |
Property, Plant and Equipment -
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 442 | $ 339 | $ 257 |
Offsets to LNG terminal costs | $ 48 | $ 94 | $ 301 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 13,861 | $ 13,209 |
LNG terminal costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (1,104) | (667) |
Property, plant and equipment, net | 13,854 | 13,203 |
LNG terminal [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,736 | 10,004 |
LNG terminal construction-in-process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,222 | 3,866 |
Fixed assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18 | 14 |
Accumulated depreciation | (11) | (8) |
Property, plant and equipment, net | $ 7 | $ 6 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
LNG terminal costs [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
LNG terminal costs [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 50 years |
Water pipelines [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Liquefaction processing equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Liquefaction processing equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 50 years |
Other [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Other [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - tbtu | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 10 years | |
Liquefaction Supply Derivatives [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,663 | 2,978 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Assets and Liabilities (Details) - Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 24 | $ (43) |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 3 | 5 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (3) | (23) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 24 | $ (25) |
Derivative Instruments - Fair_2
Derivative Instruments - Fair Value Inputs - Quantitative Information (Details) - Physical Liquefaction Supply Derivatives [Member] - Fair Value, Inputs, Level 3 [Member] | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Net Fair Value Asset | $ 24,000,000 |
Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant Unobservable Inputs Range | (0.350) |
Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant Unobservable Inputs Range | $ 0.058 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Level 3 Activity (Details) - Physical Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ (25) | $ 43 | $ 79 | |
Realized and mark-to-market gains (losses): | ||||
Included in cost of sales | 6 | (3) | (37) | |
Purchases and settlements: | ||||
Purchases | 0 | (37) | 14 | |
Settlements | 42 | (29) | 12 | |
Transfers out of Level 3 | [1] | 1 | 1 | (1) |
Balance, end of period | 24 | (25) | 43 | |
Change in unrealized gains (losses) relating to instruments still held at end of period | $ 6 | $ (3) | $ (37) | |
[1] | Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. |
Derivative Instruments - Fair_3
Derivative Instruments - Fair Value of Derivative Instruments by Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 17 | $ 6 | |
Non-current derivative assets | 32 | 31 | |
Derivative liabilities | (9) | (66) | |
Non-current derivative liabilities | (16) | (14) | |
Liquefaction Supply Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [1] | 49 | 37 |
Total derivative liabilities | [1] | (25) | (80) |
Derivative asset (liability), net | [1] | 24 | (43) |
Derivative, collateral posted by us | 2 | 1 | |
Liquefaction Supply Derivatives [Member] | Derivative assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [1] | 17 | 6 |
Liquefaction Supply Derivatives [Member] | Non-current derivative assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | [1] | 32 | 31 |
Liquefaction Supply Derivatives [Member] | Derivative liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [1] | (9) | (66) |
Liquefaction Supply Derivatives [Member] | Non-current derivative liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | [1] | $ (16) | $ (14) |
[1] | Does not include collateral posted with counterparties by us of $2 million and $1 million for such contracts, which are included in other current assets in our Balance Sheets as of December 31, 2019 and 2018 , respectively. |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Interest Rate Derivatives [Member] | Gain (Loss) on Derivative Instruments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gain (loss), net | $ 0 | $ 0 | $ (2) | |
Liquefaction Supply Derivatives [Member] | LNG revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gain (loss), net | [1] | 1 | (1) | 0 |
Liquefaction Supply Derivatives [Member] | Cost of sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gain (loss), net | [1] | $ 71 | $ (100) | $ (24) |
[1] | Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. |
Derivative Instruments - Deri_2
Derivative Instruments - Derivative Net Presentation on Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Liquefaction Supply Derivatives Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | $ 51 | $ 63 |
Derivative Asset, Gross Amounts Offset in the Balance Sheets | (2) | (26) |
Net Amounts Presented in our Balance Sheets | 49 | 37 |
Liquefaction Supply Derivatives Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (27) | (92) |
Derivative Liability, Gross Amounts Offset in the Balance Sheets | 2 | 12 |
Net Amounts Presented in our Balance Sheets | $ (25) | $ (80) |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent [Abstract] | ||
Advances made to municipalities for water system enhancements | $ 87 | $ 90 |
Advances and other asset conveyances to third parties to support LNG terminal | 35 | 36 |
Operating lease assets | 21 | 0 |
Information technology service prepayments | 6 | 16 |
Advances made under EPC and non-EPC contracts | 15 | 14 |
Other | 1 | 2 |
Other non-current assets, net | $ 165 | $ 158 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Interest costs and related debt fees | $ 186 | $ 186 |
Accrued natural gas purchases | 325 | 518 |
Liquefaction Project costs | 116 | 64 |
Other accrued liabilities | 2 | 0 |
Total accrued liabilities | $ 629 | $ 768 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2015 |
Debt Instrument [Line Items] | |||
Unamortized discount, premium and debt issuance costs, net | $ (126,000,000) | $ (150,000,000) | |
Long-term Debt, Net | 13,524,000,000 | 13,500,000,000 | |
Current Debt, Working Capital Facility | 0 | 0 | |
Total Debt, Net | 13,524,000,000 | 13,500,000,000 | |
2021 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 2,000,000,000 | 2,000,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | ||
2022 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 1,000,000,000 | 1,000,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | ||
2023 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | ||
2024 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 2,000,000,000 | 2,000,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||
2025 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 2,000,000,000 | 2,000,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | ||
2026 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | ||
2027 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
2028 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 1,350,000,000 | 1,350,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | ||
2037 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 800,000,000 | 800,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Working Capital Facility [Member] | |||
Debt Instrument [Line Items] | |||
Current Debt, Working Capital Facility | $ 0 | $ 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000,000 | $ 1,200,000,000 |
Debt - Schedule of Maturities (
Debt - Schedule of Maturities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 0 |
2021 | 2,000 |
2022 | 1,000 |
2023 | 1,500 |
2024 | 2,000 |
Thereafter | 7,150 |
Total | $ 13,650 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) | 12 Months Ended |
Dec. 31, 2019Rate | |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Fixed Charge, Coverage Ratio | 1.25 |
Debt Instrument, Redemption Price, Percentage | 100.00% |
Senior Notes, Excluding 2026 Senior Notes, 2027 Senior Notes, 2028 Senior Notes and 2037 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Period, Minimum Number of Months Prior to Maturity Date, Redemption Price Equals Make Whole Price | 3 months |
Debt Instrument, Redemption Period, Maximum Number of Months Prior to Maturity Date, Redemption Price Equals Principal Amount | 3 months |
2026 Senior Notes, 2027 Senior Notes, 2028 Senior Notes and 2037 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Period, Minimum Number of Months Prior to Maturity Date, Redemption Price Equals Make Whole Price | 6 months |
Debt Instrument, Redemption Period, Maximum Number of Months Prior to Maturity Date, Redemption Price Equals Principal Amount | 6 months |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2015 | |
Line of Credit Facility [Line Items] | |||
Outstanding balance | $ 0 | $ 0 | |
Working Capital Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Original facility size | 1,200,000,000 | ||
Outstanding balance | 0 | $ 0 | |
Letters of credit issued | 414,000,000 | ||
Available commitment | $ 786,000,000 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | ||
Debt Instrument, Maturity Date | Dec. 31, 2020 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000,000 | $ 1,200,000,000 | |
Line of Credit Facility, Commitment Fee Percentage | 0.70% | ||
Working Capital Facility [Member] | Portion issued and not drawn [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 1.75% | ||
Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Working Capital Facility [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Working Capital Facility [Member] | Base Rate Determination Federal Funds Rate [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Working Capital Facility [Member] | Base Rate Determination LIBOR [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Working Capital Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility Permitted Increase | $ 760,000,000 | ||
Line of Credit Facility Additional Permitted Increase | $ 390,000,000 | ||
Line of Credit Facility, Number of Business Days Notice Required for Repayment of Debt Without Penalty | 3 days | ||
Letter of Credit [Member] | Drawn Portion [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term Line of Credit | $ 0 | ||
Letter of Credit [Member] | Base Rate [Member] | Drawn Portion [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
LC Loan [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Term | 1 year | ||
Swing Line Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Minimum Period For Termination Date, Number of Business Days | 3 days | ||
Swing Line Loan [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Term | 15 days | ||
Working Capital Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Annual Temporary Requirement, Balance, Outstanding Principal | $ 0 | ||
Line of Credit Facility, Annual Temporary Requirement, Period, Number of Consecutive Business Days | 5 days |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Total interest cost | $ 790 | $ 791 | $ 779 |
Capitalized interest | (85) | (202) | (285) |
Total interest expense, net | $ 705 | $ 589 | $ 494 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | $ 13,524 | $ 13,500 | |
Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [1] | 12,850 | 12,850 |
Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [1] | 14,050 | 13,235 |
2037 Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [2] | 800 | 800 |
2037 Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [2] | $ 934 | $ 817 |
[1] | Includes 2021 Senior Notes , 2022 Senior Notes , 2023 Senior Notes , 2024 Senior Notes , 2025 Senior Notes , 2026 Senior Notes , 2027 Senior Notes and 2028 Senior Notes . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments. | ||
[2] | The Level 3 estimated fair value was calculated based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115.00% | |
LNG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Variable Consideration Received From Customers, Percentage | 52.00% | 57.00% |
LNG—affiliate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Variable Consideration Received From Customers, Percentage | 100.00% | 100.00% |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | $ 6,522 | $ 6,127 | $ 4,024 | |||||||||
Net derivative gains | [1] | 1 | (1) | 0 | ||||||||
Revenues | $ 1,828 | $ 1,397 | $ 1,626 | $ 1,672 | $ 1,821 | $ 1,454 | $ 1,333 | $ 1,518 | 6,523 | 6,126 | 4,024 | |
LNG [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | 5,210 | 4,828 | 2,635 | |||||||||
Revenues | 5,211 | 4,827 | 2,635 | |||||||||
LNG—affiliate [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues from contracts with customers | $ 1,312 | $ 1,299 | $ 1,389 | |||||||||
[1] | See Note 7—Derivative Instruments for additional information about our derivatives. |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Schedule of Deferred Revenue Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change In Contract With Customer, Liability [Roll Forward] | ||
Deferred revenues, beginning of period | $ 91 | $ 84 |
Cash received but not yet recognized | 132 | 91 |
Revenue recognized from prior period deferral | (91) | (84) |
Deferred revenues, end of period | $ 132 | $ 91 |
Revenues from Contracts with _6
Revenues from Contracts with Customers - Schedule of Transaction Price Allocated to Future Performance Obligations (Details) - LNG [Member] - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | [1] | $ 55 | $ 53.6 |
Weighted Average Recognition Timing | [1],[2] | 10 years | 10 years |
[1] | Includes future consideration from agreement contractually assigned to us from Cheniere Marketing. | ||
[2] | The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
LNG revenues—affiliate | $ 1,312 | $ 1,299 | $ 1,389 |
Cost of sales—affiliate | 47 | 32 | 23 |
Operating and maintenance expense—affiliate | 450 | 423 | 329 |
General and administrative expense—affiliate | 79 | 50 | 58 |
Cheniere Marketing Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
LNG revenues—affiliate | 1,309 | 1,299 | 1,389 |
Contracts for Sale and Purchase of Natural Gas And LNG [Member] | |||
Related Party Transaction [Line Items] | |||
LNG revenues—affiliate | 3 | 0 | 0 |
Cost of sales—affiliate | 7 | 0 | 0 |
Terminal Use Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of sales—affiliate | 40 | 32 | 23 |
Operating and maintenance expense—affiliate | 261 | 256 | 190 |
Natural Gas Transportation Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Operating and maintenance expense—affiliate | 81 | 80 | 73 |
Service Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Operating and maintenance expense—affiliate | 107 | 87 | 65 |
General and administrative expense—affiliate | 79 | 50 | 58 |
LNG Site Sublease Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Operating and maintenance expense—affiliate | $ 1 | $ 0 | $ 1 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) MMBTU in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)MMBTUbcf / dbcfitemCargo | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||
Accounts receivable—affiliate | $ 104,000,000 | $ 113,000,000 | |
Regasification Capacity | bcf | 2 | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115.00% | ||
Advances to affiliate | $ 133,000,000 | 210,000,000 | |
Terminal Use Agreement [Member] | SPLNG [Member] | |||
Related Party Transaction [Line Items] | |||
Regasification Capacity | bcf / d | 2 | ||
Related Party Transaction, Committed Annual Fee | $ 250,000,000 | ||
LNG Sale and Purchase Agreement [Member] | Cheniere Marketing [Member] | |||
Related Party Transaction [Line Items] | |||
LNG Volume, Purchase Price Percentage of Henry Hub | 115.00% | ||
LNG Volume, Purchase Price | $ 3 | ||
2019 Letter Agreement [Member] | Cheniere Marketing [Member] | |||
Related Party Transaction [Line Items] | |||
Contract Volumes | MMBTU | 70 | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115.00% | ||
LNG Volume, Purchase Price | $ 2 | ||
2019 Letter Agreement [Member] | Cheniere Marketing [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Contract Cargoes | Cargo | 20 | ||
2020 Letter Agreement [Member] | Cheniere Marketing [Member] | |||
Related Party Transaction [Line Items] | |||
LNG Volume, Purchase Price Percentage of Henry Hub | 115.00% | ||
LNG Volume, Purchase Price | $ 1.67 | ||
2020 Letter Agreement [Member] | Cheniere Marketing [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Contract Cargoes | Cargo | 43 | ||
Natural Gas Transportation Agreement [Member] | CTPL [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Agreement Term | 20 years | ||
Related Party Agreement, Termination Notice Period | 1 year | ||
Related Party Agreement, Number Of Available Extensions | item | 2 | ||
Related Party Agreement, Term Of Available Extension | 10 years | ||
Service Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Advances to affiliate | $ 133,000,000 | 210,000,000 | |
Operation and Maintenance Agreement [Member] | Cheniere Investments [Member] | |||
Related Party Transaction [Line Items] | |||
Monthly fee as a percentage of capital expenditures incurred in the previous month | 0.60% | ||
Related Party Transaction, Committed Monthly Fee | $ 83,333 | ||
Management Services Agreement [Member] | Cheniere Terminals [Member] | |||
Related Party Transaction [Line Items] | |||
Monthly fee as a percentage of capital expenditures incurred in the previous month | 2.40% | ||
Related Party Transaction, Committed Monthly Fee | $ 541,667 | ||
LNG Site Sublease Agreement [Member] | SPLNG [Member] | |||
Related Party Transaction [Line Items] | |||
Annual Sublease Payment | $ 1,000,000 | ||
Term of available extension | 10 years | ||
Review Period for Inflation Adjustment | 5 years | ||
Cooperation Agreement [Member] | SPLNG [Member] | |||
Related Party Transaction [Line Items] | |||
Assets conveyed under the agreement | $ 351,000,000 | $ 0 | $ 0 |
Tax Sharing Agreement [Member] | Cheniere [Member] | |||
Related Party Transaction [Line Items] | |||
Income Taxes Paid, Net | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)tbtubcfitem | |
Commitments and Contingencies [Line Items] | |
Energy Units Secured Through Natural Gas Supply Contracts | tbtu | 3,850 |
Regasification Capacity | bcf | 2 |
Loss Contingency, Pending Claims, Number | item | 0 |
Bechtel EPC Contract, Train 6 [Member] | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitment, Amount | $ 2,500 |
Long-term Purchase Commitment, Amount Incurred To Date | 1,100 |
Bechtel EPC Contract, Train 6 [Member] | Maximum [Member] | |
Commitments and Contingencies [Line Items] | |
Contract termination convenience penalty | $ 30 |
Natural Gas Supply Agreement [Member] | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitment, Period | 10 years |
Transportation Agreement [Member] | Maximum [Member] | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitment, Period | 20 years |
Storage Service Agreement [Member] | Maximum [Member] | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitment, Period | 10 years |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Obligations Table (Details) - Natural Gas Supply, Transportation And Storage Service Agreements [Member] $ in Millions | Dec. 31, 2019USD ($) | [1] |
Long-term Purchase Commitment [Line Items] | ||
2020 | $ 2,329 | |
2021 | 1,416 | |
2022 | 931 | |
2023 | 722 | |
2024 | 401 | |
Thereafter | 2,871 | |
Total | $ 8,670 | |
[1] | (1) Pricing of natural gas supply contracts are variable based on market commodity basis prices adjusted for basis spread . Amounts included are based on estimated forward prices and basis spreads as of December 31, 2019 . Some of our contracts may not have been negotiated as part of arranging financing for the underlying assets providing the natural gas supply, transportation and storage services. |
Customer Concentration (Details
Customer Concentration (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A [Member] | Total Revenues from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 29.00% | 30.00% | 43.00% |
Customer A [Member] | Accounts Receivable from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 22.00% | 35.00% | |
Customer B [Member] | Total Revenues from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 19.00% | 23.00% | 30.00% |
Customer B [Member] | Accounts Receivable from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 23.00% | |
Customer C [Member] | Total Revenues from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 24.00% | 25.00% |
Customer C [Member] | Accounts Receivable from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 22.00% | 30.00% | |
Customer D [Member] | Total Revenues from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 20.00% | 0.00% |
Customer D [Member] | Accounts Receivable from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | ||
Customer E [Member] | Total Revenues from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.00% | 0.00% | |
Customer E [Member] | Accounts Receivable from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 0.00% | |
Customer F [Member] | Total Revenues from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.00% | 0.00% | |
Customer F [Member] | Accounts Receivable from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 0.00% |
Customer Concentration - Schedu
Customer Concentration - Schedule of Revenues from External Customers by Country (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||||||||||
Revenues from External Customers | $ 1,828 | $ 1,397 | $ 1,626 | $ 1,672 | $ 1,821 | $ 1,454 | $ 1,333 | $ 1,518 | $ 6,523 | $ 6,126 | $ 4,024 |
Geographic Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues from External Customers | 5,211 | 4,827 | 2,635 | ||||||||
Geographic Concentration Risk [Member] | United States | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues from External Customers | 2,039 | 1,580 | 1,161 | ||||||||
Geographic Concentration Risk [Member] | India | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues from External Customers | 1,113 | 981 | 0 | ||||||||
Geographic Concentration Risk [Member] | South Korea | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues from External Customers | 1,071 | 1,168 | 666 | ||||||||
Geographic Concentration Risk [Member] | Ireland | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues from External Customers | 988 | 1,098 | 787 | ||||||||
Geographic Concentration Risk [Member] | Other countries | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues from External Customers | $ 0 | $ 0 | $ 21 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid during the period for interest, net of amounts capitalized | $ 678 | $ 604 | $ 438 |
Non-cash distributions to affiliates for conveyance of assets | 351 | 0 | 0 |
Balance in property, plant and equipment, net funded with accounts payable and accrued liabilities (including affiliate) | $ 276 | $ 256 | $ 268 |
Summarized Quarterly Financia_3
Summarized Quarterly Financial Data (unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 1,828 | $ 1,397 | $ 1,626 | $ 1,672 | $ 1,821 | $ 1,454 | $ 1,333 | $ 1,518 | $ 6,523 | $ 6,126 | $ 4,024 |
Income from operations | 547 | 228 | 340 | 453 | 406 | 384 | 339 | 391 | 1,568 | 1,520 | 781 |
Net income | $ 367 | $ 48 | $ 150 | $ 308 | $ 266 | $ 243 | $ 193 | $ 242 | $ 873 | $ 944 | $ 250 |