Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2023 |
Document Transition Report | false |
Entity File Number | 333-215435 |
Entity Registrant Name | Cheniere Corpus Christi Holdings, LLC |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 47-1929160 |
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 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 Central Index Key | 0001693317 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||
Revenues | $ 1,648 | $ 1,995 |
Revenues from contracts with customers | 1,653 | 2,000 |
Operating costs and expenses (recovery) | ||
Cost (recovery) of sales (excluding items shown separately below) | (2,540) | 2,341 |
Cost of sales—affiliate | 15 | 12 |
Operating and maintenance expense | 116 | 113 |
Operating and maintenance expense—affiliate | 30 | 30 |
Operating and maintenance expense—related party | 2 | 2 |
General and administrative expense | 2 | 2 |
General and administrative expense—affiliate | 12 | 8 |
Depreciation and amortization expense | 112 | 110 |
Total operating costs and expenses (recovery) | (2,251) | 2,618 |
Income (loss) from operations | 3,899 | (623) |
Other income (expense) | ||
Interest expense, net of capitalized interest | (63) | (118) |
Loss on modification or extinguishment of debt | (10) | (2) |
Interest rate derivative gain, net | 0 | 3 |
Other income, net | 3 | 0 |
Total other expense | (70) | (117) |
Net income (loss) | 3,829 | (740) |
LNG [Member] | ||
Revenues | ||
Revenues | 1,093 | 1,324 |
Revenues from contracts with customers | 1,098 | 1,329 |
LNG—affiliate [Member] | ||
Revenues | ||
Revenues from contracts with customers | $ 555 | $ 671 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Restricted cash and cash equivalents | $ 93 | $ 738 |
Trade and other receivables, net of current expected credit losses | 140 | 348 |
Trade receivables—affiliate | 157 | 240 |
Advances to affiliate | 93 | 132 |
Inventory | 120 | 178 |
Current derivative assets | 20 | 12 |
Margin deposits | 14 | 76 |
Other current assets | 10 | 18 |
Total current assets | 647 | 1,742 |
Property, plant and equipment, net of accumulated depreciation | 14,030 | 13,673 |
Debt issuance, net of accumulated amortization | 39 | 40 |
Derivative assets | 168 | 7 |
Other non-current assets, net | 307 | 225 |
Total assets | 15,191 | 15,687 |
Current liabilities | ||
Accounts payable | 14 | 85 |
Accrued liabilities | 398 | 901 |
Accrued liabilities—related party | 1 | 1 |
Current debt, net of discount and debt issuance costs | 0 | 495 |
Due to affiliates | 26 | 43 |
Current derivative liabilities | 818 | 1,374 |
Other current liabilities | 2 | 1 |
Total current liabilities | 1,259 | 2,900 |
Long-term debt, net of discount and debt issuance costs | 6,307 | 6,698 |
Derivative liabilities | 2,250 | 4,923 |
Other non-current liabilities | 77 | 78 |
Other non-current liabilities—affiliate | 4 | 4 |
Member’s equity | 5,294 | 1,084 |
Total liabilities and member’s equity | $ 15,191 | $ 15,687 |
Consolidated Statements of Memb
Consolidated Statements of Member's Equity - USD ($) $ in Millions | Total | Cheniere CCH HoldCo I, LLC [Member] |
Member's equity, beginning of period at Dec. 31, 2021 | $ 1,281 | $ 1,281 |
Contributions | 138 | 138 |
Net income (loss) | (740) | (740) |
Member's equity, end of period at Mar. 31, 2022 | 679 | 679 |
Member's equity, beginning of period at Dec. 31, 2022 | 1,084 | 1,084 |
Contributions | 45 | 45 |
Contributions of cancelled senior secured notes (see Note 8) | 396 | 396 |
Distributions | (60) | (60) |
Net income (loss) | 3,829 | 3,829 |
Member's equity, end of period at Mar. 31, 2023 | $ 5,294 | $ 5,294 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net income (loss) | $ 3,829 | $ (740) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expense | 112 | 110 |
Amortization of discount and debt issuance costs | 3 | 6 |
Loss on modification or extinguishment of debt | 10 | 2 |
Total losses (gains) on derivative instruments, net | (3,406) | 1,052 |
Net cash provided by (used for) settlement of derivative instruments | 8 | (30) |
Other | 4 | 0 |
Changes in operating assets and liabilities: | ||
Trade and other receivables, net of current expected credit losses | 208 | 83 |
Trade receivables—affiliate | 82 | (2) |
Advances to affiliate | 37 | 37 |
Inventory | 58 | 22 |
Margin deposits | 61 | 51 |
Accounts payable and accrued liabilities | (506) | (28) |
Due to affiliates | (17) | (15) |
Other, net | (1) | (95) |
Net cash provided by operating activities | 482 | 453 |
Cash flows from investing activities | ||
Property, plant and equipment | (606) | (45) |
Net cash used in investing activities | (606) | (45) |
Cash flows from financing activities | ||
Repayments of debt | (498) | (540) |
Debt extinguishment costs | (8) | 0 |
Contributions | 45 | 138 |
Distributions | (60) | 0 |
Net cash used in financing activities | (521) | (402) |
Net increase (decrease) in restricted cash and cash equivalents | (645) | 6 |
Restricted cash and cash equivalents—beginning of period | 738 | 44 |
Restricted cash and cash equivalents—end of period | $ 93 | $ 50 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION We operate a natural gas liquefaction and export facility located near Corpus Christi, Texas (the “Corpus Christi LNG Terminal”) through CCL, which has three operational Trains for a total production capacity of approximately 15 mtpa of LNG, three LNG storage tanks and two marine berths. Additionally, we are constructing an expansion of the Corpus Christi LNG Terminal (the “Corpus Christi Stage 3 Project”) for up to seven midscale Trains with an expected total production capacity of over 10 mtpa of LNG. Through our subsidiary CCP, we also own a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG Terminal with several interstate and intrastate natural gas pipelines (the “Corpus Christi Pipeline” and together with the Corpus Christi LNG Terminal and the Corpus Christi Stage 3 Project, the “Liquefaction Project”). We have increased available liquefaction capacity at our Liquefaction Project as a result of debottlenecking and other optimization projects. We hold a significant land position at the Corpus Christi LNG Terminal which provides opportunity for further liquefaction capacity expansion. In March 2023, CCL and another subsidiary of Cheniere submitted an application with the FERC under the Natural Gas Act for an expansion adjacent to the Liquefaction Project consisting of two midscale Trains with an expected total production capacity of approximately 3 mtpa of LNG. The development of this site or other projects, including infrastructure projects in support of natural gas supply and LNG demand, will require, among other things, acceptable commercial and financing arrangements before we make a positive FID. Basis of Presentation The accompanying unaudited Consolidated Financial Statements of CCH have been prepared in accordance with GAAP for interim financial information and in accordance with Rule 10-01 of Regulation S-X and reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the financial results for the interim periods presented. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended December 31, 2022 . Results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2023. 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 Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements. Recent Accounting Standards ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance primarily provides temporary optional expedients which simplify the accounting for contract modifications to existing contracts expected to arise from the market transition from LIBOR to alternative reference rates. The temporary optional expedients under the standard became effective March 12, 2020 and will be available until December 31, 2024 following a subsequent amendment to the standard. We have various credit facilities indexed to LIBOR, as further described in Note 8—Debt . In June 2022, we amended our credit facilities to bear interest at a variable rate per annum based on SOFR as a result of the expected LIBOR transition. Since adoption of the standard, we elected to apply the optional expedients as applicable to certain modified facilities; however, the impact of applying the optional expedients was not material, and the transition to SOFR did not have a material impact on our cash flows. |
Restricted Cash and Cash Equiva
Restricted Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2023 | |
Restricted Cash and Cash Equivalents [Abstract] | |
Restricted Cash and Cash Equivalents | RESTRICTED CASH AND CASH EQUIVALENTS 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 and other restricted payments. As of March 31, 2023 and December 31, 2022, we had $93 million and $738 million of restricted cash and cash equivalents, respectively, as required by the above agreement, of which $498 million as of December 31, 2022 related to the cash contributed from Cheniere for the redemption of the remaining outstanding principal balance of the 7.000% Senior Notes due 2024 (the “2024 CCH Senior Notes”) in January 2023. |
Trade and Other Receivables, Ne
Trade and Other Receivables, Net of Current Expected Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Trade and Other Receivables, Net of Current Expected Credit Losses | TRADE AND OTHER RECEIVABLES, NET OF CURRENT EXPECTED CREDIT LOSSES Trade and other receivables, net of current expected credit losses consisted of the following (in millions): March 31, December 31, 2023 2022 Trade receivables $ 132 $ 319 Other receivables 8 29 Total trade and other receivables, net of current expected credit losses $ 140 $ 348 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following (in millions): March 31, December 31, 2023 2022 Materials $ 92 $ 92 LNG 7 53 Natural gas 19 31 Other 2 2 Total inventory $ 120 $ 178 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net of Accumulated Depreciation | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net of Accumulated Depreciation | PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): March 31, December 31, 2023 2022 LNG terminal Terminal and interconnecting pipeline facilities $ 13,324 $ 13,299 Site and related costs 302 302 Construction-in-process 1,928 1,486 Accumulated depreciation (1,532) (1,421) Total LNG terminal, net of accumulated depreciation 14,022 13,666 Fixed assets Fixed assets 28 26 Accumulated depreciation (20) (19) Total fixed assets, net of accumulated depreciation 8 7 Property, plant and equipment, net of accumulated depreciation $ 14,030 $ 13,673 Depreciation expense was $112 million and $110 million during three months ended March 31, 2023 and 2022, respectively. We recognize offsets to LNG terminal costs 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. We did not record any offsets to LNG terminal costs during the three months ended March 31, 2023 and 2022. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS CCL has entered into commodity derivatives consisting of natural gas and power supply contracts, including those under the IPM agreements, for the development, commissioning and operation of the Liquefaction Project and associated economic hedges (collectively, “Liquefaction Supply Derivatives”). We recognize CCL’s derivative instruments as either assets or liabilities and measure those instruments at fair value. None of CCL’s derivative instruments are designated as cash flow or fair value hedging instruments, and changes in fair value are recorded within our Consolidated Statements of Operations to the extent not utilized for the commissioning process, in which case such changes are capitalized. The following table shows the fair value of the derivative instruments that are required to be measured at fair value on a recurring basis (in millions): Fair Value Measurements as of March 31, 2023 December 31, 2022 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Liquefaction Supply Derivatives asset (liability) $ 6 $ 38 $ (2,924) $ (2,880) $ (54) $ (19) $ (6,205) $ (6,278) We value the Liquefaction Supply Derivatives using a market or option-based approach incorporating present value techniques, as needed, using observable commodity price curves, when available, and other relevant data. The fair value of the 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, but not limited to, evaluation of whether the respective market exists from the perspective of market participants as infrastructure is developed. We include a significant portion of the 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 and volatility. The Level 3 fair value measurements of the natural gas positions within the Liquefaction Supply Derivatives could be materially impacted by a significant change in certain natural gas and international LNG prices. The following table includes quantitative information for the unobservable inputs for the Level 3 Liquefaction Supply Derivatives as of March 31, 2023: Net Fair Value Liability Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Liquefaction Supply Derivatives $(2,924) Market approach incorporating present value techniques Henry Hub basis spread $(0.828) - $0.370 / $(0.159) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 86% - 574% / 173% (1) Unobservable inputs were weighted by the relative fair value of the instruments. (2) Spread contemplates U.S. dollar-denominated pricing. Increases or decreases in basis or pricing spreads, in isolation, would decrease or increase, respectively, the fair value of the Liquefaction Supply Derivatives. The following table shows the changes in the fair value of the Level 3 Liquefaction Supply Derivatives (in millions): Three Months Ended March 31, 2023 2022 Balance, beginning of period $ (6,205) $ (1,221) Realized and change in fair value gains (losses) included in net income (1): Included in cost of sales, existing deals (2) 3,048 (1,170) Included in cost of sales, new deals (3) — — Purchases and settlements: Purchases (4) — (5) Settlements (5) 233 161 Balance, end of period $ (2,924) $ (2,235) Favorable (unfavorable) changes in fair value relating to instruments still held at the end of the period $ 3,048 $ (1,170) (1) Does not include the realized value associated with derivative instruments that settle through physical delivery, as settlement is equal to contractually fixed price from trade date multiplied by contractual volume. See settlements line item in this table. (2) Impact to earnings on deals that existed at the beginning of the period and continue to exist at the end of the period. (3) Impact to earnings on deals that were entered into during the reporting period and continue to exist at the end of the period. (4) Includes any day one gain (loss) recognized during the reporting period on deals that were entered into during the reporting period which continue to exist at the end of the period, in addition to any derivative contracts acquired from entities at a value other than zero on acquisition date, such as derivatives assigned or novated during the reporting period and continuing to exist at the end of the period. (5) Roll-off in the current period of amounts recognized in our Consolidated Balance Sheets at the end of the previous period due to settlement of the underlying instruments in the current period. All counterparty derivative contracts provide for the unconditional right of set-off in the event of default. We have elected to report derivative assets and liabilities arising from those derivative contracts with the same counterparty and the unconditional contractual right of set-off on a net basis. The use of derivative instruments exposes CCL to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments, in instances when the derivative instruments are in an asset position. Additionally, counterparties are at risk that CCL will be unable to meet its commitments in instances where the derivative instruments are in a liability position. We incorporate both CCL’s nonperformance risk and the respective counterparty’s nonperformance risk in fair value measurements depending on the position of the derivative. In adjusting the fair value of the 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. Liquefaction Supply Derivatives CCL holds Liquefaction Supply Derivatives which are primarily indexed to the natural gas market and international LNG indices. The terms of the Liquefaction Supply Derivatives range up to approximately 15 years, some of which commence upon the satisfaction of certain events or states of affairs. The forward notional amount for the Liquefaction Supply Derivatives was approximately 8,332 TBtu and 8,532 TBtu as of March 31, 2023 and December 31, 2022, respectively. The following table shows the effect and location of the Liquefaction Supply Derivatives recorded on our Consolidated Statements of Operations (in millions): Gain (Loss) Recognized in Consolidated Statements of Operations Consolidated Statements of Operations Location (1) Three Months Ended March 31, 2023 2022 LNG revenues $ (5) $ (5) Recovery (cost) of sales 3,411 (1,050) (1) Does not include the 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. Fair Value and Location of Derivative Assets and Liabilities on the Consolidated Balance Sheets The following table shows the fair value and location of the Liquefaction Supply Derivatives on our Consolidated Balance Sheets (in millions): Fair Value Measurements as of (1) March 31, 2023 December 31, 2022 Consolidated Balance Sheets Location Current derivative assets $ 20 $ 12 Derivative assets 168 7 Total derivative assets 188 19 Current derivative liabilities (818) (1,374) Derivative liabilities (2,250) (4,923) Total derivative liabilities (3,068) (6,297) Derivative liability, net $ (2,880) $ (6,278) (1) Does not include collateral posted with counterparties by CCL of $14 million and $76 million as of March 31, 2023 and December 31, 2022, respectively, which are included in margin deposits in our Consolidated Balance Sheets. Consolidated Balance Sheets Presentation The following table shows the fair value of the derivatives outstanding on a gross and net basis (in millions) for the derivative instruments that are presented on a net basis on our Consolidated Balance Sheets: Liquefaction Supply Derivatives March 31, 2023 December 31, 2022 Gross assets $ 281 $ 19 Offsetting amounts (93) — Net assets $ 188 $ 19 Gross liabilities $ (3,268) $ (6,622) Offsetting amounts 200 325 Net liabilities $ (3,068) $ (6,297) |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of the following (in millions): March 31, December 31, 2023 2022 Natural gas purchases $ 262 $ 597 Interest costs and related debt fees 77 150 Liquefaction Project costs 41 103 Other accrued liabilities 18 51 Total accrued liabilities $ 398 $ 901 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consisted of the following (in millions): March 31, December 31, 2023 2022 Senior Secured Notes: 2024 CCH Senior Notes $ — $ 498 5.875% due 2025 1,491 1,491 5.125% due 2027 1,201 1,271 3.700% due 2029 1,125 1,361 3.788% weighted average rate due 2039 2,541 2,633 Total Senior Secured Notes 6,358 7,254 CCH Credit Facility — — CCH Working Capital Facility (1) — — Total debt 6,358 7,254 Current portion of long-term debt — (495) Long-term portion of unamortized discount and debt issuance costs, net (51) (61) Total long-term debt, net of discount and debt issuance costs $ 6,307 $ 6,698 (1) The CCH Working Capital Facility is classified as short-term debt as we are required to reduce the aggregate outstanding principal amount of the CCH Working Capital Facility to zero for a period of five consecutive business days at least once each year. Credit Facilities Below is a summary of our credit facilities outstanding as of March 31, 2023 (in millions): CCH Credit Facility CCH Working Capital Facility Total facility size $ 3,260 $ 1,500 Less: Outstanding balance — — Letters of credit issued — 162 Available commitment $ 3,260 $ 1,338 Priority ranking Senior secured Senior secured Interest rate on available balance (1) SOFR plus credit spread adjustment of 0.1%, plus margin of 1.5% or base rate plus 0.5% SOFR plus credit spread adjustment of 0.1%, plus margin of 1.0% - 1.5% or base rate plus 0.0% - 0.5% Commitment fees on undrawn balance (1) 0.525% 0.10% - 0.20% Maturity date (2) June 15, 2027 (1) The margin on the interest rate and the commitment fees is subject to change based on the applicable entity’s credit rating. (2) The CCH Credit Facility matures the earlier of June 15, 2029 or two years after the substantial completion of the last Train of the Corpus Christi Stage 3 Project. Cancellation of CCH Senior Secured Notes Contributed from Cheniere During the three months ended March 31, 2023, Cheniere repurchased $398 million of our Senior Secured Notes due 2027, 2029 and 2039 on the open market, with all of such repurchases immediately contributed to us from Cheniere for no consideration, and cancelled by us. It was determined that for accounting purposes, Cheniere repurchased the bonds on our behalf as a principal as opposed to as an agent, and thus the debt extinguishment was accounted for as an extinguishment directly with Cheniere. Additionally, we recorded a net distribution from Cheniere totaling $2 million from associated operating activities, inclusive of $2 million of interest due to the extinguishment of debt at the time of repayment offset by our write off of associated debt issuance costs and discount of $4 million. Restrictive Debt Covenants The indentures governing our senior notes and other agreements underlying our debt contain customary terms and events of default and certain covenants that, among other things, may limit us and our restricted subsidiaries’ ability to make certain investments or pay dividends or distributions. We are restricted from making distributions under agreements governing our indebtedness generally until, among other requirements, appropriate reserves have been established for debt service using cash or letters of credit and a historical debt service coverage ratio and projected debt service coverage ratio of at least 1.25:1.00 is satisfied. As of March 31, 2023, we were in compliance with all covenants related to our debt agreements. Interest Expense Total interest expense, net of capitalized interest, consisted of the following (in millions): Three Months Ended March 31, 2023 2022 Total interest cost $ 83 $ 119 Capitalized interest (20) (1) Total interest expense, net of capitalized interest $ 63 $ 118 Fair Value Disclosures The following table shows the carrying amount and estimated fair value of our debt (in millions): March 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Senior notes — Level 2 (1) $ 4,387 $ 4,210 $ 5,283 $ 5,014 Senior notes — Level 3 (2) 1,971 1,853 1,971 1,738 (1) 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. The estimated fair value of our credit facilities approximates the principal amount outstanding because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES The following table represents a disaggregation of revenue earned (in millions): Three Months Ended March 31, 2023 2022 Revenues from contracts with customers LNG revenues $ 1,098 $ 1,329 LNG revenues—affiliate 555 671 Total revenues from contracts with customers 1,653 2,000 Net derivative loss (1) (5) (5) Total revenues $ 1,648 $ 1,995 (1) See Note 6 —Derivative Instruments for additional information about our derivatives. Contract Assets and Liabilities The following table shows our contract assets, net of current expected credit losses, which are classified as other current assets and other non-current assets, net on our Consolidated Balance Sheets (in millions): March 31, December 31, 2023 2022 Contract assets, net of current expected credit losses $ 154 $ 144 The following table reflects the changes in our contract liabilities, which we classify as other non-current liabilities on our Consolidated Balance Sheets (in millions): Three Months Ended March 31, 2023 Deferred revenue, beginning of period $ 76 Cash received but not yet recognized in revenue 76 Revenue recognized from prior period deferral (76) Deferred revenue, end of period $ 76 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: March 31, 2023 December 31, 2022 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) LNG revenues $ 50.5 10 $ 50.9 10 LNG revenues—affiliate 1.2 9 1.2 8 Total revenues $ 51.7 $ 52.1 (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. 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) The table above excludes substantially all variable consideration under our SPAs. 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 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. Additionally, we have excluded variable consideration related to contracts where there is uncertainty that one or both of the parties will achieve certain milestones. Approximately 55% and 64% of our LNG revenues from contracts included in the table above during the three months ended March 31, 2023 and 2022, respectively, were related to variable consideration received from customers. Approximately 83% of our LNG revenues—affiliate from contracts included in the table above during the three months ended March 31, 2023 were related to variable consideration received from customers. None of our LNG revenues—affiliates from the contract included in the table above were related to variable consideration received from customers during the three months ended March 31, 2022. We may enter into contracts to sell LNG that are conditioned upon one or both of the parties achieving certain milestones such as reaching FID 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 | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Below is a summary of our related party transactions as reported on our Consolidated Statements of Operations (in millions): Three Months Ended March 31, 2023 2022 LNG revenues—affiliate Cheniere Marketing Agreements (1) $ 555 $ 665 Contracts for Sale and Purchase of Natural Gas and LNG (2) — 6 Total LNG revenues—affiliate 555 671 Cost of sales—affiliate Contracts for Sale and Purchase of Natural Gas and LNG (2) 15 12 Operating and maintenance expense—affiliate Services Agreements (3) 30 30 Operating and maintenance expense—related party Natural Gas Transportation Agreements (4) 2 2 General and administrative expense—affiliate Services Agreements (3) 12 8 (1) CCL primarily sells LNG to Cheniere Marketing International LLP (“Cheniere Marketing”), a wholly owned subsidiary of Cheniere, under SPAs and a letter agreement at a price equal to 115% of Henry Hub plus a fixed fee, except for SPAs associated with IPM agreements for which pricing is linked to international natural gas prices. In addition, CCL has an arrangement with subsidiaries of Cheniere to provide the ability, in limited circumstances, to potentially fulfill commitments to LNG buyers in the event operational conditions impact operations at either the Sabine Pass or Corpus Christi liquefaction facilities. The purchase price for such cargoes would be the greater of: (a) 115% of the applicable natural gas feedstock purchase price or (b) an FOB U.S. Gulf Coast LNG market price. As of March 31, 2023 and December 31, 2022, CCL had $157 million and $223 million of trade receivables—affiliate, respectively, under these agreements with Cheniere Marketing. (2) CCL has an agreement with Sabine Pass Liquefaction, LLC (“SPL”) that allows the parties to sell and purchase natural gas with each other. Natural gas purchased under this agreement 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. As of March 31, 2023 and December 31, 2022, CCL had zero and $16 million of accounts receivable—affiliate, respectively, under these agreements with SPL. (3) We do not have employees and thus our subsidiaries have various services agreements with affiliates of Cheniere in the ordinary course of business, including services required to construct, operate and maintain the Liquefaction Project, and administrative services. Prior to the substantial completion of each Train of the Liquefaction Project, our payments under the services agreements are primarily based on a cost reimbursement structure, and following the completion of each Train, our payments include a fixed monthly fee (indexed for inflation) per mtpa in addition to the reimbursement of costs. As of March 31, 2023 and December 31, 2022, we had $93 million and $132 million of advances to affiliates, respectively, under the services agreements. The non-reimbursement amounts incurred under these agreements are recorded in general and administrative expense—affiliate. (4) CCL is party to natural gas transportation agreements with a related party in the ordinary course of business for the operation of the Liquefaction Project. CCL had accrued liabilities—related party of $1 million as of both March 31, 2023 and December 31, 2022 with this related party. We had $26 million and $43 million due to affiliates as of March 31, 2023 and December 31, 2022, respectively, under agreements with affiliates as described above. Disclosure of future consideration under revenue contracts with affiliates is included in Note 9 — Revenues . Other Agreements State Tax Sharing Agreements CCL and CCP each have a state tax sharing agreement with Cheniere. Under these agreements, Cheniere has agreed to prepare and file all state and local tax returns which each of the entities 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, each of the respective entities will pay to Cheniere an amount equal to the state and local tax that each of the entities would be required to pay if its state and local tax liability were calculated on a separate company basis. To date, there have been no state and local tax payments demanded by Cheniere under the tax sharing agreements. The agreements for both CCL and CCP were effective for tax returns due on or after May 2015. Equity Contribution Agreements We have equity contribution agreements with Cheniere and certain of its subsidiaries (the “Equity Contribution Agreements”) pursuant to which Cheniere agreed to contribute any of CCH’s Senior Secured Notes that Cheniere has repurchased to CCH. During the three months ended March 31, 2023, Cheniere repurchased a total of $398 million of the outstanding principal amount of CCH’s Senior Secured Notes due 2027, 2029 and 2039 on the open market, which were immediately contributed under the Equity Contribution Agreements to us from Cheniere and cancelled by us. Arrangement with ADCC Pipeline, LLC In June 2022, Cheniere acquired a 30% equity interest in ADCC Pipeline, LLC and its wholly owned subsidiary (collectively, “ADCC Pipeline”) through its wholly owned subsidiary Cheniere ADCC Investments, LLC. ADCC Pipeline will develop, construct and operate an approximately 42-mile natural gas pipeline project (the “ADCC Pipeline Project”) connecting the Agua Dulce natural gas hub to the CCL Project. CCL is party to a natural gas transportation agreement with ADCC Pipeline for the operation of the CCL Project, with an initial term of 20 years with extension rights, which will commence upon the completion of the ADCC Pipeline Project. |
Customer Concentration
Customer Concentration | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | CUSTOMER CONCENTRATION The concentration of our customer credit risk in excess of 10% or greater of total revenues and/or trade and other receivables was as follows: Percentage of Total Revenues from External Customers Percentage of Trade and Other Receivables, Net and Contract Assets, Net from External Customers Three Months Ended March 31, March 31, December 31, 2023 2022 2023 2022 Customer A 23% 26% * 17% Customer B 14% 14% * * Customer C 15% 12% * * Customer D * * 48% 33% Customer E * * 11% * * Less than 10% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2023 | |
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): Three Months Ended March 31, 2023 2022 Cash paid during the period for interest on debt, net of amounts capitalized $ 115 $ 11 Non-cash investing activity: Unpaid purchases of property, plant and equipment 38 18 Non-cash financing activity: Cancellation of CCH Senior Secured Notes contributed to us from Cheniere (see Note 8 ) 398 — |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation The accompanying unaudited Consolidated Financial Statements of CCH have been prepared in accordance with GAAP for interim financial information and in accordance with Rule 10-01 of Regulation S-X and reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the financial results for the interim periods presented. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended December 31, 2022 . Results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2023. |
Income Taxes, Policy | 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 Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements. |
Recent Accounting Standards | Recent Accounting Standards ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance primarily provides temporary optional expedients which simplify the accounting for contract modifications to existing contracts expected to arise from the market transition from LIBOR to alternative reference rates. The temporary optional expedients under the standard became effective March 12, 2020 and will be available until December 31, 2024 following a subsequent amendment to the standard. We have various credit facilities indexed to LIBOR, as further described in Note 8—Debt . In June 2022, we amended our credit facilities to bear interest at a variable rate per annum based on SOFR as a result of the expected LIBOR transition. Since adoption of the standard, we elected to apply the optional expedients as applicable to certain modified facilities; however, the impact of applying the optional expedients was not material, and the transition to SOFR did not have a material impact on our cash flows. |
Trade and Other Receivables, _2
Trade and Other Receivables, Net of Current Expected Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | Trade and other receivables, net of current expected credit losses consisted of the following (in millions): March 31, December 31, 2023 2022 Trade receivables $ 132 $ 319 Other receivables 8 29 Total trade and other receivables, net of current expected credit losses $ 140 $ 348 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in millions): March 31, December 31, 2023 2022 Materials $ 92 $ 92 LNG 7 53 Natural gas 19 31 Other 2 2 Total inventory $ 120 $ 178 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net of Accumulated Depreciation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): March 31, December 31, 2023 2022 LNG terminal Terminal and interconnecting pipeline facilities $ 13,324 $ 13,299 Site and related costs 302 302 Construction-in-process 1,928 1,486 Accumulated depreciation (1,532) (1,421) Total LNG terminal, net of accumulated depreciation 14,022 13,666 Fixed assets Fixed assets 28 26 Accumulated depreciation (20) (19) Total fixed assets, net of accumulated depreciation 8 7 Property, plant and equipment, net of accumulated depreciation $ 14,030 $ 13,673 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value of Derivative Assets and Liabilities | The following table shows the fair value of the derivative instruments that are required to be measured at fair value on a recurring basis (in millions): Fair Value Measurements as of March 31, 2023 December 31, 2022 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Liquefaction Supply Derivatives asset (liability) $ 6 $ 38 $ (2,924) $ (2,880) $ (54) $ (19) $ (6,205) $ (6,278) |
Fair Value Measurement Inputs and Valuation Techniques | The following table includes quantitative information for the unobservable inputs for the Level 3 Liquefaction Supply Derivatives as of March 31, 2023: Net Fair Value Liability Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Liquefaction Supply Derivatives $(2,924) Market approach incorporating present value techniques Henry Hub basis spread $(0.828) - $0.370 / $(0.159) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 86% - 574% / 173% (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table shows the changes in the fair value of the Level 3 Liquefaction Supply Derivatives (in millions): Three Months Ended March 31, 2023 2022 Balance, beginning of period $ (6,205) $ (1,221) Realized and change in fair value gains (losses) included in net income (1): Included in cost of sales, existing deals (2) 3,048 (1,170) Included in cost of sales, new deals (3) — — Purchases and settlements: Purchases (4) — (5) Settlements (5) 233 161 Balance, end of period $ (2,924) $ (2,235) Favorable (unfavorable) changes in fair value relating to instruments still held at the end of the period $ 3,048 $ (1,170) (1) Does not include the realized value associated with derivative instruments that settle through physical delivery, as settlement is equal to contractually fixed price from trade date multiplied by contractual volume. See settlements line item in this table. (2) Impact to earnings on deals that existed at the beginning of the period and continue to exist at the end of the period. (3) Impact to earnings on deals that were entered into during the reporting period and continue to exist at the end of the period. (4) Includes any day one gain (loss) recognized during the reporting period on deals that were entered into during the reporting period which continue to exist at the end of the period, in addition to any derivative contracts acquired from entities at a value other than zero on acquisition date, such as derivatives assigned or novated during the reporting period and continuing to exist at the end of the period. (5) Roll-off in the current period of amounts recognized in our Consolidated Balance Sheets at the end of the previous period due to settlement of the underlying instruments in the current period. |
Fair Value of Derivative Instruments by Balance Sheet Location | The following table shows the fair value and location of the Liquefaction Supply Derivatives on our Consolidated Balance Sheets (in millions): Fair Value Measurements as of (1) March 31, 2023 December 31, 2022 Consolidated Balance Sheets Location Current derivative assets $ 20 $ 12 Derivative assets 168 7 Total derivative assets 188 19 Current derivative liabilities (818) (1,374) Derivative liabilities (2,250) (4,923) Total derivative liabilities (3,068) (6,297) Derivative liability, net $ (2,880) $ (6,278) (1) Does not include collateral posted with counterparties by CCL of $14 million and $76 million as of March 31, 2023 and December 31, 2022, respectively, which are included in margin deposits in our Consolidated Balance Sheets. |
Derivative Net Presentation on Consolidated Balance Sheets | The following table shows the fair value of the derivatives outstanding on a gross and net basis (in millions) for the derivative instruments that are presented on a net basis on our Consolidated Balance Sheets: Liquefaction Supply Derivatives March 31, 2023 December 31, 2022 Gross assets $ 281 $ 19 Offsetting amounts (93) — Net assets $ 188 $ 19 Gross liabilities $ (3,268) $ (6,622) Offsetting amounts 200 325 Net liabilities $ (3,068) $ (6,297) |
Liquefaction Supply Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Instruments, Gain (Loss) | The following table shows the effect and location of the Liquefaction Supply Derivatives recorded on our Consolidated Statements of Operations (in millions): Gain (Loss) Recognized in Consolidated Statements of Operations Consolidated Statements of Operations Location (1) Three Months Ended March 31, 2023 2022 LNG revenues $ (5) $ (5) Recovery (cost) of sales 3,411 (1,050) (1) Does not include the 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. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in millions): March 31, December 31, 2023 2022 Natural gas purchases $ 262 $ 597 Interest costs and related debt fees 77 150 Liquefaction Project costs 41 103 Other accrued liabilities 18 51 Total accrued liabilities $ 398 $ 901 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt consisted of the following (in millions): March 31, December 31, 2023 2022 Senior Secured Notes: 2024 CCH Senior Notes $ — $ 498 5.875% due 2025 1,491 1,491 5.125% due 2027 1,201 1,271 3.700% due 2029 1,125 1,361 3.788% weighted average rate due 2039 2,541 2,633 Total Senior Secured Notes 6,358 7,254 CCH Credit Facility — — CCH Working Capital Facility (1) — — Total debt 6,358 7,254 Current portion of long-term debt — (495) Long-term portion of unamortized discount and debt issuance costs, net (51) (61) Total long-term debt, net of discount and debt issuance costs $ 6,307 $ 6,698 (1) The CCH Working Capital Facility is classified as short-term debt as we are required to reduce the aggregate outstanding principal amount of the CCH Working Capital Facility to zero for a period of five consecutive business days at least once each year. |
Schedule of Line of Credit Facilities | Below is a summary of our credit facilities outstanding as of March 31, 2023 (in millions): CCH Credit Facility CCH Working Capital Facility Total facility size $ 3,260 $ 1,500 Less: Outstanding balance — — Letters of credit issued — 162 Available commitment $ 3,260 $ 1,338 Priority ranking Senior secured Senior secured Interest rate on available balance (1) SOFR plus credit spread adjustment of 0.1%, plus margin of 1.5% or base rate plus 0.5% SOFR plus credit spread adjustment of 0.1%, plus margin of 1.0% - 1.5% or base rate plus 0.0% - 0.5% Commitment fees on undrawn balance (1) 0.525% 0.10% - 0.20% Maturity date (2) June 15, 2027 (1) The margin on the interest rate and the commitment fees is subject to change based on the applicable entity’s credit rating. (2) The CCH Credit Facility matures the earlier of June 15, 2029 or two years after the substantial completion of the last Train of the Corpus Christi Stage 3 Project. |
Schedule of Interest Expense | Total interest expense, net of capitalized interest, consisted of the following (in millions): Three Months Ended March 31, 2023 2022 Total interest cost $ 83 $ 119 Capitalized interest (20) (1) Total interest expense, net of capitalized interest $ 63 $ 118 |
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): March 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Senior notes — Level 2 (1) $ 4,387 $ 4,210 $ 5,283 $ 5,014 Senior notes — Level 3 (2) 1,971 1,853 1,971 1,738 (1) 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. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a disaggregation of revenue earned (in millions): Three Months Ended March 31, 2023 2022 Revenues from contracts with customers LNG revenues $ 1,098 $ 1,329 LNG revenues—affiliate 555 671 Total revenues from contracts with customers 1,653 2,000 Net derivative loss (1) (5) (5) Total revenues $ 1,648 $ 1,995 (1) See Note 6 —Derivative Instruments |
Contract with Customer, Asset | The following table shows our contract assets, net of current expected credit losses, which are classified as other current assets and other non-current assets, net on our Consolidated Balance Sheets (in millions): March 31, December 31, 2023 2022 Contract assets, net of current expected credit losses $ 154 $ 144 |
Contract Balances Reconciliation | The following table reflects the changes in our contract liabilities, which we classify as other non-current liabilities on our Consolidated Balance Sheets (in millions): Three Months Ended March 31, 2023 Deferred revenue, beginning of period $ 76 Cash received but not yet recognized in revenue 76 Revenue recognized from prior period deferral (76) Deferred revenue, end of period $ 76 |
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: March 31, 2023 December 31, 2022 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) LNG revenues $ 50.5 10 $ 50.9 10 LNG revenues—affiliate 1.2 9 1.2 8 Total revenues $ 51.7 $ 52.1 (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. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Below is a summary of our related party transactions as reported on our Consolidated Statements of Operations (in millions): Three Months Ended March 31, 2023 2022 LNG revenues—affiliate Cheniere Marketing Agreements (1) $ 555 $ 665 Contracts for Sale and Purchase of Natural Gas and LNG (2) — 6 Total LNG revenues—affiliate 555 671 Cost of sales—affiliate Contracts for Sale and Purchase of Natural Gas and LNG (2) 15 12 Operating and maintenance expense—affiliate Services Agreements (3) 30 30 Operating and maintenance expense—related party Natural Gas Transportation Agreements (4) 2 2 General and administrative expense—affiliate Services Agreements (3) 12 8 (1) CCL primarily sells LNG to Cheniere Marketing International LLP (“Cheniere Marketing”), a wholly owned subsidiary of Cheniere, under SPAs and a letter agreement at a price equal to 115% of Henry Hub plus a fixed fee, except for SPAs associated with IPM agreements for which pricing is linked to international natural gas prices. In addition, CCL has an arrangement with subsidiaries of Cheniere to provide the ability, in limited circumstances, to potentially fulfill commitments to LNG buyers in the event operational conditions impact operations at either the Sabine Pass or Corpus Christi liquefaction facilities. The purchase price for such cargoes would be the greater of: (a) 115% of the applicable natural gas feedstock purchase price or (b) an FOB U.S. Gulf Coast LNG market price. As of March 31, 2023 and December 31, 2022, CCL had $157 million and $223 million of trade receivables—affiliate, respectively, under these agreements with Cheniere Marketing. (2) CCL has an agreement with Sabine Pass Liquefaction, LLC (“SPL”) that allows the parties to sell and purchase natural gas with each other. Natural gas purchased under this agreement 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. As of March 31, 2023 and December 31, 2022, CCL had zero and $16 million of accounts receivable—affiliate, respectively, under these agreements with SPL. (3) We do not have employees and thus our subsidiaries have various services agreements with affiliates of Cheniere in the ordinary course of business, including services required to construct, operate and maintain the Liquefaction Project, and administrative services. Prior to the substantial completion of each Train of the Liquefaction Project, our payments under the services agreements are primarily based on a cost reimbursement structure, and following the completion of each Train, our payments include a fixed monthly fee (indexed for inflation) per mtpa in addition to the reimbursement of costs. As of March 31, 2023 and December 31, 2022, we had $93 million and $132 million of advances to affiliates, respectively, under the services agreements. The non-reimbursement amounts incurred under these agreements are recorded in general and administrative expense—affiliate. (4) CCL is party to natural gas transportation agreements with a related party in the ordinary course of business for the operation of the Liquefaction Project. CCL had accrued liabilities—related party of $1 million as of both March 31, 2023 and December 31, 2022 with this related party. |
Customer Concentration (Tables)
Customer Concentration (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue and Accounts Receivable by Major Customers | : Percentage of Total Revenues from External Customers Percentage of Trade and Other Receivables, Net and Contract Assets, Net from External Customers Three Months Ended March 31, March 31, December 31, 2023 2022 2023 2022 Customer A 23% 26% * 17% Customer B 14% 14% * * Customer C 15% 12% * * Customer D * * 48% 33% Customer E * * 11% * * Less than 10% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides supplemental disclosure of cash flow information (in millions): Three Months Ended March 31, 2023 2022 Cash paid during the period for interest on debt, net of amounts capitalized $ 115 $ 11 Non-cash investing activity: Unpaid purchases of property, plant and equipment 38 18 Non-cash financing activity: Cancellation of CCH Senior Secured Notes contributed to us from Cheniere (see Note 8 ) 398 — |
Organization and Nature of Oper
Organization and Nature of Operations (Details) | 3 Months Ended |
Mar. 31, 2023 milliontonnes / yr mi unit item trains | |
Corpus Christi Pipeline [Member] | |
Organization and Nature of Operations [Line Items] | |
Length Of Natural Gas Pipeline | mi | 21.5 |
Corpus Christi LNG Terminal [Member] | |
Organization and Nature of Operations [Line Items] | |
Number of Liquefaction LNG Trains Operating | trains | 3 |
Total Production Capability | milliontonnes / yr | 15 |
Number of LNG Storage Tanks | unit | 3 |
Number of Marine Berths | item | 2 |
Corpus Christi Stage 3 Project | Maximum [Member] | |
Organization and Nature of Operations [Line Items] | |
Number of Liquefaction LNG Trains | trains | 7 |
Corpus Christi Stage 3 Project | Minimum [Member] | |
Organization and Nature of Operations [Line Items] | |
Total Production Capability | milliontonnes / yr | 10 |
Corpus Christi LNG Terminal Expansion | |
Organization and Nature of Operations [Line Items] | |
Total Production Capability | milliontonnes / yr | 3 |
Number of Liquefaction LNG Trains | trains | 2 |
Restricted Cash and Cash Equi_2
Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | $ 93 | $ 738 |
Cash Contributed from Parent for Subsequent Repayment of Debt | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | 498 | |
2024 CCH Senior Notes [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7% | |
CCL Project [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | $ 93 | $ 738 |
Trade and Other Receivables, _3
Trade and Other Receivables, Net of Current Expected Credit Losses (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Trade receivables | $ 132 | $ 319 |
Other receivables | 8 | 29 |
Total trade and other receivables, net of current expected credit losses | $ 140 | $ 348 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Inventory | $ 120 | $ 178 |
Materials [Member] | ||
Inventory [Line Items] | ||
Inventory | 92 | 92 |
LNG [Member] | ||
Inventory [Line Items] | ||
Inventory | 7 | 53 |
Natural gas [Member] | ||
Inventory [Line Items] | ||
Inventory | 19 | 31 |
Other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 2 | $ 2 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net of Accumulated Depreciation - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | $ 14,030 | $ 13,673 |
LNG terminal costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (1,532) | (1,421) |
Property, plant and equipment, net of accumulated depreciation | 14,022 | 13,666 |
Terminal and interconnecting pipeline facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,324 | 13,299 |
Site and related costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 302 | 302 |
Construction-in-process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,928 | 1,486 |
Fixed assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 28 | 26 |
Accumulated depreciation | (20) | (19) |
Property, plant and equipment, net of accumulated depreciation | $ 8 | $ 7 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net of Accumulated Depreciation - Schedule of Depreciation and Offsets to LNG Terminal Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 112 | $ 110 |
Offsets to LNG terminal costs | $ 0 | $ 0 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - CCL [Member] - tbtu | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 15 years | |
Liquefaction Supply Derivatives [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 8,332 | 8,532 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Assets and Liabilities (Details) - Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (2,880) | $ (6,278) |
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 | 6 | (54) |
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 | 38 | (19) |
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 | $ (2,924) | $ (6,205) |
Derivative Instruments - Fair_2
Derivative Instruments - Fair Value Inputs - Quantitative Information (Details) - Physical Liquefaction Supply Derivatives [Member] - Fair Value, Inputs, Level 3 [Member] | 3 Months Ended | |
Mar. 31, 2023 USD ($) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net Fair Value Liability | $ (2,924,000,000) | |
Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | (0.828) | [1] |
Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | 0.370 | [1] |
Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | $ (0.159) | [1] |
Valuation Technique, Option Pricing Model [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 86% | [1],[2] |
Valuation Technique, Option Pricing Model [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 574% | [1],[2] |
Valuation Technique, Option Pricing Model [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 173% | [1],[2] |
[1]Unobservable inputs were weighted by the relative fair value of the instruments.[2]Spread contemplates U.S. dollar-denominated pricing. |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Level 3 Activity (Details) - Physical Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Fair Value, Assets (Liabilities) Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | $ (6,205) | $ (1,221) | |
Realized and change in fair value gains (losses) included in net income: | |||
Included in cost of sales, existing deals | [1],[2] | 3,048 | (1,170) |
Included in cost of sales, new deals | [1],[3] | 0 | 0 |
Purchases and settlements: | |||
Purchases | [4] | 0 | (5) |
Settlements | [5] | 233 | 161 |
Balance, end of period | (2,924) | (2,235) | |
Favorable (unfavorable) changes in fair value relating to instruments still held at the end of the period | $ 3,048 | $ (1,170) | |
[1]Does not include the realized value associated with derivative instruments that settle through physical delivery, as settlement is equal to contractually fixed price from trade date multiplied by contractual volume. See settlements line item in this table.[2]Impact to earnings on deals that existed at the beginning of the period and continue to exist at the end of the period.[3]Impact to earnings on deals that were entered into during the reporting period and continue to exist at the end of the period.[4]Includes any day one gain (loss) recognized during the reporting period on deals that were entered into during the reporting period which continue to exist at the end of the period, in addition to any derivative contracts acquired from entities at a value other than zero on acquisition date, such as derivatives assigned or novated during the reporting period and continuing to exist at the end of the period.[5]Roll-off in the current period of amounts recognized in our Consolidated Balance Sheets at the end of the previous period due to settlement of the underlying instruments in the current period. |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
LNG Revenues [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain (loss), net | [1] | $ (5) | $ (5) |
Recovery (cost) of sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain (loss), net | [1] | $ 3,411 | $ (1,050) |
[1]Does not include the 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 - Fair_3
Derivative Instruments - Fair Value of Derivative Instruments by Balance Sheet Location (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | $ 20 | $ 12 | |
Derivative assets | 168 | 7 | |
Current derivative liabilities | (818) | (1,374) | |
Derivative liabilities | (2,250) | (4,923) | |
Liquefaction Supply Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [1] | 188 | 19 |
Total derivative liabilities | [1] | (3,068) | (6,297) |
Derivative liability, net | [1] | (2,880) | (6,278) |
Derivative, collateral posted by us | 14 | 76 | |
Liquefaction Supply Derivatives [Member] | Current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | [1] | 20 | 12 |
Liquefaction Supply Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [1] | 168 | 7 |
Liquefaction Supply Derivatives [Member] | Current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative liabilities | [1] | (818) | (1,374) |
Liquefaction Supply Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [1] | $ (2,250) | $ (4,923) |
[1]Does not include collateral posted with counterparties by CCL of $14 million and $76 million as of March 31, 2023 and December 31, 2022, respectively, which are included in margin deposits in our Consolidated Balance Sheets. |
Derivative Instruments - Deri_2
Derivative Instruments - Derivative Net Presentation on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Liquefaction Supply Derivative Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | $ 281 | $ 19 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | (93) | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 188 | 19 |
Liquefaction Supply Derivative Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (3,268) | (6,622) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 200 | 325 |
Derivative Assets (Liabilities), at Fair Value, Net | $ (3,068) | $ (6,297) |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Natural gas purchases | $ 262 | $ 597 |
Interest costs and related debt fees | 77 | 150 |
Liquefaction Project costs | 41 | 103 |
Other accrued liabilities | 18 | 51 |
Total accrued liabilities | $ 398 | $ 901 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 6,358 | $ 7,254 | |
Current portion of long-term debt | 0 | (495) | |
Long-term portion of unamortized discount and debt issuance costs, net | (51) | (61) | |
Total long-term debt, net of discount and debt issuance costs | 6,307 | 6,698 | |
CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 6,358 | 7,254 | |
2024 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 0 | 498 | |
Debt Instrument, Interest Rate, Stated Percentage | 7% | ||
2025 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,491 | 1,491 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | ||
2027 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,201 | 1,271 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | ||
2029 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,125 | 1,361 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | ||
2039 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 2,541 | 2,633 | |
2039 CCH Senior Notes [Member] | Weighted Average [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.788% | ||
CCH Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 0 | 0 | |
CCH Working Capital Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | [1] | $ 0 | $ 0 |
[1]The CCH Working Capital Facility is classified as short-term debt as we are required to reduce the aggregate outstanding principal amount of the CCH Working Capital Facility to zero for a period of five consecutive business days at least once each year. |
Debt - Credit Facilities Table
Debt - Credit Facilities Table (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) unit Rate | Mar. 31, 2022 USD ($) | ||
Line of Credit Facility [Line Items] | |||
Contributions | $ 45 | $ 138 | |
Debt, Minimum Historical Debt Service Coverage Ratio And Projected Debt Service Coverage Ratio | unit | 1.25 | ||
Interest Due | Cheniere [Member] | |||
Line of Credit Facility [Line Items] | |||
Contributions | $ 2 | ||
CCH Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Total facility size | 3,260 | ||
Outstanding balance | 0 | ||
Letters of credit issued | 0 | ||
Available commitment | $ 3,260 | ||
Debt Instrument, Description of Variable Rate Basis | SOFR or the base rate | ||
Line of Credit Facility, Commitment Fee Percentage | Rate | [1] | 0.525% | |
CCH Credit Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Maturity Date | Jun. 15, 2029 | ||
CCH Credit Facility [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | [1] | 0.50% | |
CCH Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Credit Spread Adjustment On Variable Rate | Rate | [1] | 0.10% | |
Debt Instrument, Basis Spread on Variable Rate | Rate | [1] | 1.50% | |
CCH Working Capital Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Total facility size | $ 1,500 | ||
Outstanding balance - current | 0 | ||
Letters of credit issued | 162 | ||
Available commitment | $ 1,338 | ||
Debt Instrument, Description of Variable Rate Basis | SOFR or the base rate | ||
Maturity Date | Jun. 15, 2027 | ||
CCH Working Capital Facility [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | Rate | [1] | 0.10% | |
CCH Working Capital Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | Rate | [1] | 0.20% | |
CCH Working Capital Facility [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | Rate | [1] | 0% | |
CCH Working Capital Facility [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | Rate | [1] | 0.50% | |
CCH Working Capital Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Credit Spread Adjustment On Variable Rate | Rate | [1] | 0.10% | |
CCH Working Capital Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | Rate | [1] | 1% | |
CCH Working Capital Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | Rate | [1] | 1.50% | |
CCH Senior Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest Paid at Time of Repayment of Debt | $ 2 | ||
Write off of debt issuance costs and discount | $ 4 | ||
[1]The margin on the interest rate and the commitment fees is subject to change based on the applicable entity’s credit rating. |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Total interest cost | $ 83 | $ 119 |
Capitalized interest | (20) | (1) |
Total interest expense, net of capitalized interest | $ 63 | $ 118 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | $ 6,358 | $ 7,254 | |
Senior notes [Member] | Carrying Amount [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [1] | 4,387 | 5,283 |
Senior notes [Member] | Carrying Amount [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [2] | 1,971 | 1,971 |
Senior notes [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | [1] | 4,210 | 5,014 |
Senior notes [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | [2] | $ 1,853 | $ 1,738 |
[1]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 - Schedule of Disaggre
Revenues - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 1,653 | $ 2,000 | |
Net derivative gain (loss) | [1] | (5) | (5) |
Revenues | 1,648 | 1,995 | |
LNG [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,098 | 1,329 | |
Revenues | 1,093 | 1,324 | |
LNG—affiliate [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 555 | $ 671 | |
[1] See Note 6 —Derivative Instruments |
Revenues - Contract Assets and
Revenues - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net of current expected credit losses | $ 154 | $ 144 |
Change in Contract with Customer, Liability [Roll Forward] | ||
Deferred revenue, beginning of period | 76 | |
Cash received but not yet recognized in revenue | 76 | |
Revenue recognized from prior period deferral | (76) | |
Deferred revenue, end of period | $ 76 |
Revenues - Schedule of Transact
Revenues - Schedule of Transaction Price Allocated to Future Performance Obligations (Details) - USD ($) $ in Billions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Unsatisfied Transaction Price | $ 52.1 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Unsatisfied Transaction Price | $ 51.7 | |||
LNG [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Variable Consideration Received From Customers, Percentage | 55% | 64% | ||
LNG [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Unsatisfied Transaction Price | $ 50.9 | |||
Weighted Average Recognition Timing | [1] | 10 years | ||
LNG [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Unsatisfied Transaction Price | $ 50.5 | |||
Weighted Average Recognition Timing | [1] | 10 years | ||
LNG—affiliate [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Variable Consideration Received From Customers, Percentage | 83% | 0% | ||
LNG—affiliate [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Unsatisfied Transaction Price | $ 1.2 | |||
Weighted Average Recognition Timing | [1] | 8 years | ||
LNG—affiliate [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Unsatisfied Transaction Price | $ 1.2 | |||
Weighted Average Recognition Timing | [1] | 9 years | ||
[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. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Related Party Transaction [Line Items] | |||
LNG revenues—affiliate | $ 1,653 | $ 2,000 | |
Cost of sales—affiliate | 15 | 12 | |
Operating and maintenance expense—affiliate | 30 | 30 | |
Operating and maintenance expense—related party | 2 | 2 | |
General and administrative expense—affiliate | 12 | 8 | |
LNG—affiliate [Member] | |||
Related Party Transaction [Line Items] | |||
LNG revenues—affiliate | 555 | 671 | |
Cheniere Marketing Agreements [Member] | LNG—affiliate [Member] | |||
Related Party Transaction [Line Items] | |||
LNG revenues—affiliate | [1] | 555 | 665 |
Contracts for Sale and Purchase of Natural Gas And LNG [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of sales—affiliate | [2] | 15 | 12 |
Contracts for Sale and Purchase of Natural Gas And LNG [Member] | LNG—affiliate [Member] | |||
Related Party Transaction [Line Items] | |||
LNG revenues—affiliate | [2] | 0 | 6 |
Service Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Operating and maintenance expense—affiliate | [3] | 30 | 30 |
General and administrative expense—affiliate | [3] | 12 | 8 |
Natural Gas Transportation Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Operating and maintenance expense—related party | [4] | $ 2 | $ 2 |
[1]CCL primarily sells LNG to Cheniere Marketing International LLP (“Cheniere Marketing”), a wholly owned subsidiary of Cheniere, under SPAs and a letter agreement at a price equal to 115% of Henry Hub plus a fixed fee, except for SPAs associated with IPM agreements for which pricing is linked to international natural gas prices. In addition, CCL has an arrangement with subsidiaries of Cheniere to provide the ability, in limited circumstances, to potentially fulfill commitments to LNG buyers in the event operational conditions impact operations at either the Sabine Pass or Corpus Christi liquefaction facilities. The purchase price for such cargoes would be the greater of: (a) 115% of the applicable natural gas feedstock purchase price or (b) an FOB U.S. Gulf Coast LNG market price. As of March 31, 2023 and December 31, 2022, CCL had $157 million and $223 million of trade receivables—affiliate, respectively, under these agreements with Cheniere Marketing.[2]CCL has an agreement with Sabine Pass Liquefaction, LLC (“SPL”) that allows the parties to sell and purchase natural gas with each other. Natural gas purchased under this agreement 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. As of March 31, 2023 and December 31, 2022, CCL had zero and $16 million of accounts receivable—affiliate, respectively, under these agreements with SPL.[3]We do not have employees and thus our subsidiaries have various services agreements with affiliates of Cheniere in the ordinary course of business, including services required to construct, operate and maintain the Liquefaction Project, and administrative services. Prior to the substantial completion of each Train of the Liquefaction Project, our payments under the services agreements are primarily based on a cost reimbursement structure, and following the completion of each Train, our payments include a fixed monthly fee (indexed for inflation) per mtpa in addition to the reimbursement of costs. As of March 31, 2023 and December 31, 2022, we had $93 million and $132 million of advances to affiliates, respectively, under the services agreements. The non-reimbursement amounts incurred under these agreements are recorded in general and administrative expense—affiliate.[4]CCL is party to natural gas transportation agreements with a related party in the ordinary course of business for the operation of the Liquefaction Project. CCL had accrued liabilities—related party of $1 million as of both March 31, 2023 and December 31, 2022 with this related party. |
Related Party Transactions - Ta
Related Party Transactions - Table Footnotes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Trade receivables—affiliate | $ 157 | $ 240 |
Advances to affiliate | 93 | 132 |
Accrued liabilities—related party | 1 | 1 |
Due to affiliates | 26 | 43 |
CCL [Member] | Natural Gas Transportation Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Accrued liabilities—related party | $ 1 | 1 |
CCL [Member] | Affiliated Entity [Member] | Facility Swap Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115% | |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115% | |
Trade receivables—affiliate | $ 157 | 223 |
CCL [Member] | SPL | Contracts for Sale and Purchase of Natural Gas And LNG [Member] | ||
Related Party Transaction [Line Items] | ||
Trade receivables—affiliate | $ 0 | $ 16 |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) mi | |
ADCC Pipeline | |
Related Party Transaction [Line Items] | |
Length Of Natural Gas Pipeline | mi | 42 |
CCL [Member] | Cheniere [Member] | Tax Sharing Agreement [Member] | |
Related Party Transaction [Line Items] | |
Income Taxes Paid, Net | $ 0 |
CCL [Member] | ADCC Pipeline, LLC | Natural Gas Transportation Agreement [Member] | |
Related Party Transaction [Line Items] | |
Long-term Purchase Commitment, Period | 20 years |
CCP [Member] | Cheniere [Member] | Tax Sharing Agreement [Member] | |
Related Party Transaction [Line Items] | |
Income Taxes Paid, Net | $ 0 |
Cheniere [Member] | Corpus Christi Holdings Senior Notes due 2027, 2029 and 2039 | |
Related Party Transaction [Line Items] | |
Debt Instrument, Repurchased Face Amount | $ 398,000,000 |
Cheniere [Member] | ADCC Pipeline, LLC | |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 30% |
Customer Concentration - Schedu
Customer Concentration - Schedule of Customer Concentration (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 Rate | |
Customer A [Member] | Total Revenues from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 23% | 26% | |
Customer A [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 17% | ||
Customer B [Member] | Total Revenues from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14% | 14% | |
Customer C [Member] | Total Revenues from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 15% | 12% | |
Customer D [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 48% | 33% | |
Customer E [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid during the period for interest on debt, net of amounts capitalized | $ 115 | $ 11 |
Unpaid purchases of property, plant and equipment | 38 | 18 |
Cancellation of CCH Senior Secured Notes contributed to us from Cheniere (see Note 8) | $ 398 | $ 0 |