Sabine Pass LNG 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2016shares
Document and Entity Information [Abstract]
Entity Registrant Name	Sabine Pass LNG, L.P.
Entity Central Index Key	1,379,714
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	0

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 9,815	$ 7,642
Restricted cash	115,469	77,415
Accounts receivable—affiliate	5,100	615
Advances to affiliate	6,986	7,154
Inventory	8,585	9,646
Other current assets	3,574	5,499
Total current assets	149,529	107,971
Non-current restricted cash	13,650	13,650
Property, plant and equipment, net	1,675,760	1,435,024
Other non-current assets	30,839	29,149
Total assets	1,869,778	1,585,794
Current liabilities
Accounts payable	1,526	2,675
Accrued liabilities	57,243	18,877
Current debt, net	1,660,318	1,658,379
Due to affiliates	3,377	12,840
Deferred revenue	26,669	26,669
Deferred revenue—affiliate	21,845	21,845
Total current liabilities	1,770,978	1,741,285
Long-term debt, net of discount	414,690	414,402
Non-current deferred revenue	8,500	9,500
Non-current deferred revenue—affiliate	24,533	22,080
Other non-current liabilities	172	175
Other non-current liabilities—affiliate	196	236
Partners’ deficit	(349,291)	(601,884)
Total liabilities and partners’ deficit	$ 1,869,778	$ 1,585,794

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Regasification revenues	$ 65,384	$ 66,718
Regasification revenues—affiliate	65,346	64,128
Other revenues—affiliate	4,183	0
Total revenues	134,913	130,846
Operating costs and expenses
Operating and maintenance expense	11,938	11,193
Operating and maintenance expense—affiliate	6,936	3,644
General and administrative expense	272	628
General and administrative expense—affiliate	2,178	2,771
Depreciation and amortization expense	12,398	10,603
Total operating costs and expenses	33,722	28,839
Income from operations	101,191	102,007
Other income (expense)
Interest expense	(40,281)	(40,269)
Other income	101	8
Total other expense	(40,180)	(40,261)
Net income	$ 61,011	$ 61,746

Consolidated Statement of Partn

Consolidated Statement of Partners' Deficit $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Partners' Capital Beginning of Period	$ (601,884)
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income	61,011
Non-cash contributions from limited partner	254,966
Distributions to limited partner	(63,384)
Partners' Capital End of Period	(349,291)
General Partner Sabine Pass LNG-GP, LLC [Member]
Partners' Capital Beginning of Period	0
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income	0
Non-cash contributions from limited partner	0
Distributions to limited partner	0
Partners' Capital End of Period	0
Limited Partner Sabine Pass LNG-LP, LLC [Member]
Partners' Capital Beginning of Period	(601,884)
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income	61,011
Non-cash contributions from limited partner	254,966
Distributions to limited partner	(63,384)
Partners' Capital End of Period	$ (349,291)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income	$ 61,011	$ 61,746
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	12,398	10,603
Amortization of debt issuance costs and discount	2,228	2,216
Other	226	770
Other—affiliate	2,165	0
Changes in restricted cash for certain operating activities	(38,054)	(38,053)
Changes in operating assets and liabilities:
Accounts and interest receivable	(117)	(25,901)
Accounts receivable—affiliate	(4,484)	(27,179)
Advances to affiliate	168	(4,546)
Inventory	845	(14,591)
Accounts payable and accrued liabilities	37,459	49,188
Due to affiliates	(4,927)	6,949
Deferred revenue	(1,000)	(1,003)
Other, net	2,567	(2,786)
Other—affiliate	(41)	2,448
Net cash provided by operating activities	70,444	19,861
Cash flows from investing activities
Property, plant and equipment, net	(350)	4
Other—affiliate	(4,537)	0
Net cash provided by (used in) investing activities	(4,887)	4
Cash flows from financing activities
Capital contributions from Cheniere Partners	0	53,122
Distributions to limited partner	(63,384)	(70,782)
Net cash used in financing activities	(63,384)	(17,660)
Net increase in cash and cash equivalents	2,173	2,205
Cash and cash equivalents—beginning of period	7,642	5,460
Cash and cash equivalents—end of period	$ 9,815	$ 7,665

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The accompanying unaudited Consolidated Financial Statements of SPLNG have been prepared in accordance with GAAP for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation, have been included. Certain reclassifications have been made to conform prior period information to the current presentation. The reclassifications had no effect on our overall consolidated financial position, operating results or cash flows. In 2016, we renamed our “revenues” line item as “regasification revenues”, which include both LNG regasification capacity reservation fees that are received pursuant to our TUAs and tug services fees that are received by Tug Services, our wholly owned subsidiary. Results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2016 . 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 Income, is able to be included in the federal income tax return of Cheniere Partners, a publicly traded partnership which indirectly owns us. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements. For further information, refer to the Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the year ended December 31, 2015 .

Restricted Cash

Restricted Cash	3 Months Ended
	Mar. 31, 2016
Cash and Cash Equivalents [Abstract]
Restricted Cash	RESTRICTED CASH Restricted cash consists of funds that are contractually restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our Consolidated Balance Sheets. Restricted cash consisted of the following (in thousands): March 31, December 31, 2016 2015 Current restricted cash Debt service and interest payment $ 115,469 $ 77,415 Non-current restricted cash Debt service $ 13,650 $ 13,650 Under the indentures governing our senior notes (the “Senior Notes Indentures”) , except for permitted tax distributions, we may not make distributions until certain conditions are satisfied, including: (1) there must be on deposit in an interest payment account an amount equal to one -sixth of the semi-annual interest payment multiplied by the number of elapsed months since the last semi-annual interest payment, and (2) there must be on deposit in a permanent debt service reserve fund an amount equal to one semi-annual interest payment. Distributions are permitted only after satisfying the foregoing funding requirements, a fixed charge coverage ratio test of 2 :1 and other conditions specified in the Senior Notes Indentures . During the three months ended March 31, 2016 and 2015 , we made distributions of $63.4 million and $70.8 million , respectively, after satisfying all the applicable conditions in the Senior Notes Indentures .

Inventory

Inventory	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventory	INVENTORY As of March 31, 2016 and December 31, 2015 , inventory consisted of the following (in thousands): March 31, December 31, 2016 2015 LNG $ 1,648 $ 3,690 Materials and other 6,937 5,956 Total inventory $ 8,585 $ 9,646

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of LNG terminal costs and fixed assets, as follows (in thousands): March 31, December 31, 2016 2015 LNG terminal costs LNG terminal $ 1,978,191 $ 1,723,534 LNG terminal construction-in-process 5,264 7,011 LNG site and related costs, net 133 135 Accumulated depreciation (307,944 ) (295,793 ) Total LNG terminal costs, net 1,675,644 1,434,887 Fixed assets Machinery and equipment 1,061 1,061 Computer and office equipment 424 424 Vehicles 676 676 Other 669 669 Accumulated depreciation (2,714 ) (2,693 ) Total fixed assets, net 116 137 Property, plant and equipment, net $ 1,675,760 $ 1,435,024

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2016
Accrued Liabilities [Abstract]
Accrued Liabilities	ACCRUED LIABILITIES As of March 31, 2016 and December 31, 2015 , accrued liabilities consisted of the following (in thousands): March 31, December 31, 2016 2015 Interest expense $ 53,013 $ 14,960 LNG terminal costs 4,230 3,917 Total accrued liabilities $ 57,243 $ 18,877

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt	DEBT As of March 31, 2016 and December 31, 2015 , our debt consisted of the following (in thousands): March 31, December 31, 2016 2015 Long-term debt 6.50% Senior Secured Notes due 2020 (“2020 Senior Notes”) (1) $ 420,000 $ 420,000 Unamortized debt issuance costs (2) (5,310 ) (5,598 ) Total long-term debt, net 414,690 414,402 Current debt 7.50% Senior Secured Notes due 2016 (“2016 Senior Notes”), net of unamortized discount of $3,130 and $4,303 (3) 1,662,370 1,661,197 Unamortized debt issuance costs (2) (2,052 ) (2,818 ) Total current debt, net 1,660,318 1,658,379 Total debt, net $ 2,075,008 $ 2,072,781 (1) Must be redeemed or repaid concurrently with the 2016 Senior Notes under the terms of the credit facilities that Cheniere Partners entered into during February 2016 (the “2016 CQP Credit Facilities”) if the obligations under the 2016 Senior Notes are satisfied with borrowings under the 2016 CQP Credit Facilities . (2) Effective January 1, 2016, we adopted ASU 2015-03 and ASU 2015-15, which require debt issuance costs to be presented in the balance sheet as a direct deduction from the debt liability, rather than as an asset, retrospectively for each reporting period presented. As a result, we reclassified $5.6 million and $2.8 million from debt issuance costs, net to long-term debt, net and current debt, net, respectively, as of December 31, 2015 . (3) Matures on November 30, 2016. We currently anticipate that we will satisfy this obligation with capital contributions from Cheniere Partners, which it will fund with borrowings under the 2016 CQP Credit Facilities . Fair Value Disclosures The following table (in thousands) shows the carrying amount and estimated fair value of our long-term debt: March 31, 2016 December 31, 2015 Carrying Amount Estimated Fair Value (1) Carrying Amount Estimated Fair Value (1) Senior Notes, net of discount (1) $ 2,082,370 $ 2,146,985 $ 2,081,197 $ 2,056,091 (1) Includes 2016 Senior Notes , net of discount, and 2020 Senior Notes (collectively, the “Senior Notes”) . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of our Senior Notes and other similar instruments.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Terminal Use Agreement SPL, a wholly owned subsidiary of Cheniere Partners, obtained approximately 2.0 Bcf/d of regasification capacity under a TUA with us as a result of an assignment in July 2012 by Cheniere Investments, a wholly owned subsidiary of Cheniere Partners, of its rights, title and interest under its TUA with us. SPL is obligated to make monthly capacity payments to us aggregating approximately $250 million per year, continuing until at least 20 years after SPL delivers its first commercial cargo at SPL’s facilities under construction. We entered into a terminal use rights assignment and agreement (the “TURA”) with SPL and Cheniere Investments pursuant to which Cheniere Investments has the right to use SPL ’s reserved capacity under the TUA and has the obligation to make the monthly capacity payments required by the TUA to us. Cheniere Investments’ right to use capacity at our LNG terminal will be reduced as each of Train s 1 through 4 reaches commercial operations. The percentage of the monthly capacity payments payable by Cheniere Investments will be reduced from 100% to zero (unless Cheniere Investments utilizes terminal use capacity after Train 4 reaches commercial operations), and the percentage of the monthly capacity payments payable by SPL will increase by the amount that Cheniere Investments’ percentage decreases. Cheniere Partners has guaranteed SPL ’s obligations under the TUA and the obligations of Cheniere Investments under the TURA . We recorded other revenues—affiliate of $1.5 million for cargo loading services, pursuant to the TURA during the three months ended March 31, 2016 . Services Agreements We have entered into a long-term operation and maintenance agreement (the “O&M Agreement”) with Cheniere Investments pursuant to which we receive all necessary services required to operate and maintain our LNG receiving terminal. We incur a fixed monthly fee of $130,000 (indexed for inflation) under the O&M Agreement , which is recorded as general and administrative expense—affiliate on our Consolidated Statements of Income, and the cost of a bonus equal to 50% of the salary component of labor costs in certain circumstances to be agreed upon between the parties at the beginning of each operating year. In addition, we incur costs to reimburse Cheniere Investments for its operating expenses, which consist primarily of labor expenses. We have entered into a long-term management services agreement (the “MSA”) with Cheniere Terminals, a wholly owned subsidiary of Cheniere, pursuant to which Cheniere Terminals manages the operation of our LNG receiving terminal, excluding those matters provided for under the O&M Agreement . We incur a monthly fixed fee of $520,000 (indexed for inflation) under the MSA , which is recorded as general and administrative expense—affiliate on our Consolidated Statements of Income. Cheniere Investments has entered into an information technology services agreement with Cheniere, pursuant to which Cheniere Investment’s subsidiaries, including us, receive certain information technology services. On a quarterly basis, the various entities receiving the benefit are invoiced by Cheniere according to the cost allocation percentages set forth in the agreement. In addition, Cheniere is entitled to reimbursement for all costs incurred by Cheniere that are necessary to perform the services under the agreement. As of March 31, 2016 and December 31, 2015 , we had $7.0 million and $7.2 million , respectively, of advances to affiliates under the foregoing services agreements. During the three months ended March 31, 2016 and 2015 , we recorded general and administrative expense—affiliate of $2.2 million and $2.8 million , respectively, and operating and maintenance expense—affiliate of $7.2 million and $3.8 million , respectively, under the foregoing services agreements. Agreement to Fund Our Cooperative Endeavor Agreements (“CEAs”) We have executed CEAs with various Cameron Parish, Louisiana taxing authorities that allowed them to collect certain annual property tax payments from 2007 through 2016. This 10 -year initiative represented an aggregate commitment of up to $25.0 million in order to aid in their reconstruction efforts following Hurricane Rita. As of March 31, 2016 , we have fulfilled our aggregate commitment obligations to the various Cameron Parish, Louisiana taxing authorities. In exchange for our advance payments of annual ad valorem taxes, Cameron Parish will grant us a dollar-for-dollar credit against future ad valorem taxes to be levied against our LNG terminal starting in 2019. Beginning in September 2007, we entered into various agreements with Cheniere Marketing, pursuant to which Cheniere Marketing would pay us additional TUA revenues equal to any and all amounts payable by us to the Cameron Parish taxing authorities under the CEAs . In exchange for such amounts received as TUA revenues from Cheniere Marketing, we will make payments to Cheniere Marketing equal to, and in the year the Cameron Parish dollar-for-dollar credit is applied against, ad valorem tax levied on our LNG terminal. These advance tax payments were recorded to other non-current assets, and payments from Cheniere Marketing that we utilized to make the ad valorem tax payments were recorded as deferred revenue—affiliate. As of March 31, 2016 and December 31, 2015 , we had $24.5 million and $22.1 million , respectively, of both other non-current assets resulting from ad valorem tax payments and non-current deferred revenue—affiliate resulting from these payments received from Cheniere Marketing. Contracts for Sale and Purchase of Natural Gas and LNG We are able to sell and purchase natural gas and LNG under agreements with Cheniere Marketing. Under these agreements, we purchase natural gas or LNG from Cheniere Marketing at a sales price equal to the actual purchase price paid by Cheniere Marketing to suppliers of the natural gas or LNG, plus any third-party costs incurred by Cheniere Marketing with respect to the receipt, purchase and delivery of the natural gas or LNG to our LNG terminal. As a result, we record the purchases of natural gas and LNG from Cheniere Marketing to be utilized as fuel to operate our LNG terminal as operating and maintenance expense. We recorded operating and maintenance expense—affiliate of $0.7 million and $1.6 million in the three months ended March 31, 2016 and 2015 , respectively, of natural gas purchased from Cheniere Marketing under these agreements. We recorded regasification revenues—affiliate of $0.9 million and $1.3 million in the three months ended March 31, 2016 and 2015 , respectively, for natural gas sold to Cheniere Marketing under these agreements. We are also able to sell and purchase natural gas and LNG under an agreement with SPL. During the three months ended March 31, 2016 , we sold LNG to SPL and recorded other revenues—affiliate of $2.7 million . We also sold natural gas to SPL and recorded regasification revenues—affiliate of $0.3 million in the three months ended March 31, 2016 . Tug Boat Lease Sharing Agreement In connection with our tug boat lease, Tug Services, our wholly owned subsidiary, entered into a tug sharing agreement with a wholly owned subsidiary of Cheniere to provide its LNG cargo vessels with tug boat and marine services at our LNG terminal. Tug Services recorded regasification revenues—affiliate of $0.6 million and $0.7 million pursuant to this agreement during the three months ended March 31, 2016 and 2015 , respectively. LNG Site Sublease Agreement We have entered into agreements with SPL to sublease a portion of the LNG terminal site for its liquefaction project. The annual sublease payment is $0.9 million , which was increased from $0.5 million during 2015. The initial term of the sublease expires on December 31, 2034, with options to renew for multiple 10 -year extensions with similar terms as the initial term. The annual sublease payment will be adjusted for inflation every five years based on a consumer price index, as defined in the sublease agreement. We recognized $0.2 million and $0.1 million of sublease revenue from SPL as a credit to operating and maintenance expense—affiliate on our Consolidated Statements of Income for each of the three months ended March 31, 2016 and 2015 , respectively. LNG Terminal Export Agreement We have entered into an LNG Terminal Export Agreement with Cheniere Marketing that provides Cheniere Marketing with the ability to export LNG from our LNG terminal. We did no t record any revenues associated with this agreement during the three months ended March 31, 2016 and 2015 . Cooperation Agreement We have entered into an agreement with SPL to allow SPL to retain and acquire certain rights to access the property and facilities that we own for the purpose of constructing, modifying and operating SPL’s facilities under construction. In consideration for the access we have given, SPL has agreed to transfer title to us of certain facilities, equipment and modifications, which we are obligated to operate and maintain. The term of this agreement is consistent with our TUA described above. Under this agreement, SPL conveyed to us $252.8 million and $0.7 million of assets during the three months ended March 31, 2016 and 2015 , respectively. State Tax Sharing Agreement We have entered into a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which we and Cheniere are required to file on a combined basis and to timely pay the combined state and local tax liability. If Cheniere, in its sole discretion, demands payment, we will pay to Cheniere an amount equal to the state and local tax that we would be required to pay if our state and local tax liability were calculated on a separate company basis. There have been no state and local taxes paid by Cheniere for which Cheniere could have demanded payment from us under this agreement; therefore, Cheniere has not demanded any such payments from us. The agreement is effective for tax returns due on or after January 1, 2008.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2016
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	SUPPLEMENTAL CASH FLOW INFORMATION The following table (in thousands) provides supplemental disclosure of cash flow information: Three Months Ended March 31, 2016 2015 Non-cash contributions for conveyance of assets under Cooperation Agreement $ 252,801 $ 745 Non-cash contributions from limited partner for certain operating activities 2,165 — The balance in property, plant and equipment, net funded with accounts payable and accrued liabilities (including affiliate) was $1.4 million and zero , as of March 31, 2016 and 2015 , respectively.

Recent Accounting Standards

Recent Accounting Standards	3 Months Ended
	Mar. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Standards	RECENT ACCOUNTING STANDARDS The following table provides a brief description of recent accounting standards that had not been adopted by the Company as of March 31, 2016 : Standard Description Expected Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , and subsequent amendments thereto This standard amends existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance may be early adopted beginning January 1, 2017, and may be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. January 1, 2018 We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures. ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern This standard requires an entity’s management to evaluate, for each reporting period, whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. Additional disclosures are required if management concludes that conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. Early adoption is permitted. December 31, 2016 The adoption of this guidance is not expected to have an impact on our Consolidated Financial Statements or related disclosures. ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory This standard requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance may be early adopted and must be adopted prospectively. January 1, 2017 We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures. ASU 2016-02, Leases (Topic 842) This standard requires a lessee to recognize leases on its balance sheet by recording a liability representing the obligation to make future lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. A lessee is permitted to make an election not to recognize lease assets and liabilities for leases with a term of 12 months or less. The standard also modifies the definition of a lease and requires expanded disclosures. This guidance may be early adopted, and must be adopted using a modified retrospective approach with certain available practical expedients. January 1, 2019 We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures. Additionally, the following table provides a brief description of recent accounting standards that were adopted by the Company during the reporting period: Standard Description Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis These amendments primarily affect asset managers and reporting entities involved with limited partnerships or similar entities, but the analysis is relevant in the evaluation of any reporting organization’s requirement to consolidate a legal entity. This guidance changes (1) the identification of variable interests, (2) the variable interest entity characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. This guidance may be early adopted, and may be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. January 1, 2016 The adoption of this guidance did not have an impact on our Consolidated Financial Statements or related disclosures. ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements These standards require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. Debt issuance costs incurred in connection with line of credit arrangements may be presented as an asset and subsequently amortized ratably over the term of the line of credit arrangement. This guidance may be early adopted, and must be adopted retrospectively to each prior reporting period presented. January 1, 2016 Upon adoption of these standards, the balance of debt, net was reduced by the balance of debt issuance costs, net, except for the balance related to line of credit arrangements, on our Consolidated Balance Sheets. See Note 6—Debt for required disclosures for a change in accounting principle.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation, Policy	The accompanying unaudited Consolidated Financial Statements of SPLNG have been prepared in accordance with GAAP for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation, have been included. Certain reclassifications have been made to conform prior period information to the current presentation. The reclassifications had no effect on our overall consolidated financial position, operating results or cash flows. In 2016, we renamed our “revenues” line item as “regasification revenues”, which include both LNG regasification capacity reservation fees that are received pursuant to our TUAs and tug services fees that are received by Tug Services, our wholly owned subsidiary.
Income Tax, 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 Income, is able to be included in the federal income tax return of Cheniere Partners, a publicly traded partnership which indirectly owns us. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements.

Restricted Cash (Tables)

Restricted Cash (Tables)	3 Months Ended
	Mar. 31, 2016
Cash and Cash Equivalents [Abstract]
Schedule of Restricted Cash	Restricted cash consisted of the following (in thousands): March 31, December 31, 2016 2015 Current restricted cash Debt service and interest payment $ 115,469 $ 77,415 Non-current restricted cash Debt service $ 13,650 $ 13,650

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	As of March 31, 2016 and December 31, 2015 , inventory consisted of the following (in thousands): March 31, December 31, 2016 2015 LNG $ 1,648 $ 3,690 Materials and other 6,937 5,956 Total inventory $ 8,585 $ 9,646

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment consists of LNG terminal costs and fixed assets, as follows (in thousands): March 31, December 31, 2016 2015 LNG terminal costs LNG terminal $ 1,978,191 $ 1,723,534 LNG terminal construction-in-process 5,264 7,011 LNG site and related costs, net 133 135 Accumulated depreciation (307,944 ) (295,793 ) Total LNG terminal costs, net 1,675,644 1,434,887 Fixed assets Machinery and equipment 1,061 1,061 Computer and office equipment 424 424 Vehicles 676 676 Other 669 669 Accumulated depreciation (2,714 ) (2,693 ) Total fixed assets, net 116 137 Property, plant and equipment, net $ 1,675,760 $ 1,435,024

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Accrued Liabilities [Abstract]
Schedule of Accrued Liabilities	As of March 31, 2016 and December 31, 2015 , accrued liabilities consisted of the following (in thousands): March 31, December 31, 2016 2015 Interest expense $ 53,013 $ 14,960 LNG terminal costs 4,230 3,917 Total accrued liabilities $ 57,243 $ 18,877

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Debt Instruments	As of March 31, 2016 and December 31, 2015 , our debt consisted of the following (in thousands): March 31, December 31, 2016 2015 Long-term debt 6.50% Senior Secured Notes due 2020 (“2020 Senior Notes”) (1) $ 420,000 $ 420,000 Unamortized debt issuance costs (2) (5,310 ) (5,598 ) Total long-term debt, net 414,690 414,402 Current debt 7.50% Senior Secured Notes due 2016 (“2016 Senior Notes”), net of unamortized discount of $3,130 and $4,303 (3) 1,662,370 1,661,197 Unamortized debt issuance costs (2) (2,052 ) (2,818 ) Total current debt, net 1,660,318 1,658,379 Total debt, net $ 2,075,008 $ 2,072,781 (1) Must be redeemed or repaid concurrently with the 2016 Senior Notes under the terms of the credit facilities that Cheniere Partners entered into during February 2016 (the “2016 CQP Credit Facilities”) if the obligations under the 2016 Senior Notes are satisfied with borrowings under the 2016 CQP Credit Facilities . (2) Effective January 1, 2016, we adopted ASU 2015-03 and ASU 2015-15, which require debt issuance costs to be presented in the balance sheet as a direct deduction from the debt liability, rather than as an asset, retrospectively for each reporting period presented. As a result, we reclassified $5.6 million and $2.8 million from debt issuance costs, net to long-term debt, net and current debt, net, respectively, as of December 31, 2015 . (3) Matures on November 30, 2016. We currently anticipate that we will satisfy this obligation with capital contributions from Cheniere Partners, which it will fund with borrowings under the 2016 CQP Credit Facilities .
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments	The following table (in thousands) shows the carrying amount and estimated fair value of our long-term debt: March 31, 2016 December 31, 2015 Carrying Amount Estimated Fair Value (1) Carrying Amount Estimated Fair Value (1) Senior Notes, net of discount (1) $ 2,082,370 $ 2,146,985 $ 2,081,197 $ 2,056,091 (1) Includes 2016 Senior Notes , net of discount, and 2020 Senior Notes (collectively, the “Senior Notes”) . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of our Senior Notes and other similar instruments.

Supplemental Cash Flow Inform21

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2016
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	The following table (in thousands) provides supplemental disclosure of cash flow information: Three Months Ended March 31, 2016 2015 Non-cash contributions for conveyance of assets under Cooperation Agreement $ 252,801 $ 745 Non-cash contributions from limited partner for certain operating activities 2,165 —

Recent Accounting Standards (Ta

Recent Accounting Standards (Tables)	3 Months Ended
	Mar. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards, Not Yet Adopted	The following table provides a brief description of recent accounting standards that had not been adopted by the Company as of March 31, 2016 : Standard Description Expected Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , and subsequent amendments thereto This standard amends existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance may be early adopted beginning January 1, 2017, and may be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. January 1, 2018 We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures. ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern This standard requires an entity’s management to evaluate, for each reporting period, whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. Additional disclosures are required if management concludes that conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. Early adoption is permitted. December 31, 2016 The adoption of this guidance is not expected to have an impact on our Consolidated Financial Statements or related disclosures. ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory This standard requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance may be early adopted and must be adopted prospectively. January 1, 2017 We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures. ASU 2016-02, Leases (Topic 842) This standard requires a lessee to recognize leases on its balance sheet by recording a liability representing the obligation to make future lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. A lessee is permitted to make an election not to recognize lease assets and liabilities for leases with a term of 12 months or less. The standard also modifies the definition of a lease and requires expanded disclosures. This guidance may be early adopted, and must be adopted using a modified retrospective approach with certain available practical expedients. January 1, 2019 We are currently evaluating the impact of the provisions of this guidance on our Consolidated Financial Statements and related disclosures.
New Accounting Standards, Adopted	Additionally, the following table provides a brief description of recent accounting standards that were adopted by the Company during the reporting period: Standard Description Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis These amendments primarily affect asset managers and reporting entities involved with limited partnerships or similar entities, but the analysis is relevant in the evaluation of any reporting organization’s requirement to consolidate a legal entity. This guidance changes (1) the identification of variable interests, (2) the variable interest entity characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. This guidance may be early adopted, and may be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. January 1, 2016 The adoption of this guidance did not have an impact on our Consolidated Financial Statements or related disclosures. ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements These standards require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. Debt issuance costs incurred in connection with line of credit arrangements may be presented as an asset and subsequently amortized ratably over the term of the line of credit arrangement. This guidance may be early adopted, and must be adopted retrospectively to each prior reporting period presented. January 1, 2016 Upon adoption of these standards, the balance of debt, net was reduced by the balance of debt issuance costs, net, except for the balance related to line of credit arrangements, on our Consolidated Balance Sheets. See Note 6—Debt for required disclosures for a change in accounting principle.

Restricted Cash (Details)

Restricted Cash (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)Rateitem	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Restricted Cash Items [Line Items]
Current restricted cash	$ 115,469		$ 77,415
Non-current restricted cash	13,650		13,650
Partners' Capital Account, Distributions	63,384	$ 70,800
Debt Service And Interest Payment [Member]
Restricted Cash Items [Line Items]
Current restricted cash	115,469		77,415
Debt Service [Member]
Restricted Cash Items [Line Items]
Non-current restricted cash	$ 13,650		$ 13,650
Senior Notes [Member]
Restricted Cash Items [Line Items]
Debt Instrument, Number Of Months' Interest Required To Be On Deposit Per Months Elapsed Since Last Interest Payment For Distribution | item	1
Debt Instrument, Number of Semi-Annual Interest Payments Required To Be On Deposit In Permanent Debt Service FundFor Distribution | item	1
Debt instrument fixed charge coverage ratio | Rate	2

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Total inventory	$ 8,585	$ 9,646
LNG [Member]
Inventory [Line Items]
Total inventory	1,648	3,690
Materials and other [Member]
Inventory [Line Items]
Total inventory	$ 6,937	$ 5,956

Property, Plant and Equipment25

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	$ 1,675,760	$ 1,435,024
LNG terminal costs [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation	(307,944)	(295,793)
Property, plant and equipment, net	1,675,644	1,434,887
LNG terminal [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,978,191	1,723,534
LNG terminal construction-in-process [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	5,264	7,011
LNG site and related costs, net [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	133	135
Fixed assets [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation	(2,714)	(2,693)
Property, plant and equipment, net	116	137
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,061	1,061
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	424	424
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	676	676
Other [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 669	$ 669

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accrued Liabilities [Abstract]
Interest expense	$ 53,013	$ 14,960
LNG terminal costs	4,230	3,917
Total accrued liabilities	$ 57,243	$ 18,877

Debt - Schedule of Debt Instrum

Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-Term Debt, Net		$ 414,690	$ 414,402
Unamortized Debt Issuance Costs, Noncurrent	[1]	(5,310)	(5,598)
Current Debt, Net		1,660,318	1,658,379
Unamortized Debt Issuance Costs, Current	[1]	(2,052)	(2,818)
Total Debt, Net		2,075,008	2,072,781
2020 Senior Notes [Member]
Debt Instrument [Line Items]
Long-Term Debt, Net	[2]	$ 420,000	420,000
Debt Instrument, Interest Rate, Stated Percentage		6.50%
2016 Senior Notes [Member]
Debt Instrument [Line Items]
Current Debt, Net	[3]	$ 1,662,370	1,661,197
Debt Instrument, Interest Rate, Stated Percentage		7.50%
Debt Instrument, Unamortized Discount		$ 3,130	$ 4,303
[1]	Effective January 1, 2016, we adopted ASU 2015-03 and ASU 2015-15, which require debt issuance costs to be presented in the balance sheet as a direct deduction from the debt liability, rather than as an asset, retrospectively for each reporting period presented. As a result, we reclassified $5.6 million and $2.8 million from debt issuance costs, net to long-term debt, net and current debt, net, respectively, as of December 31, 2015.
[2]	Must be redeemed or repaid concurrently with the 2016 Senior Notes under the terms of the credit facilities that Cheniere Partners entered into during February 2016 (the “2016 CQP Credit Facilities”) if the obligations under the 2016 Senior Notes are satisfied with borrowings under the 2016 CQP Credit Facilities.
[3]	Matures on November 30, 2016. We currently anticipate that we will satisfy this obligation with capital contributions from Cheniere Partners, which it will fund with borrowings under the 2016 CQP Credit Facilities.

Debt - Schedule of Carrying Val

Debt - Schedule of Carrying Values and Estimated Fair Value (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Amount, Debt		$ 2,075,008	$ 2,072,781
Senior Notes, net of discount [Member] | Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Amount, Debt	[1]	2,082,370	2,081,197
Senior Notes, net of discount [Member] | Estimated Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes Payable, Fair Value Disclosure	[1]	$ 2,146,985	$ 2,056,091
[1]	Includes 2016 Senior Notes, net of discount, and 2020 Senior Notes (collectively, the “Senior Notes”). The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of our Senior Notes and other similar instruments.

Related Party Transactions - Na

Related Party Transactions - Narrative (Details)	3 Months Ended
	Mar. 31, 2016USD ($)capacity / d	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Related Party Transaction [Line Items]
Other revenues—affiliate	$ 4,183,000	$ 0
Advances to affiliate	6,986,000		$ 7,154,000
General and administrative expense—affiliate	2,178,000	2,771,000
Operating and maintenance expense—affiliate	(6,936,000)	(3,644,000)
Regasification revenues—affiliate	$ 65,346,000	64,128,000
LNG Terminal Capacity Agreements [Member] | SPL [Member]
Related Party Transaction [Line Items]
Regasification Capacity | capacity / d	2
Related Party Transaction, Committed Annual Fee	$ 250,000,000
Related Party Agreement Term	20 years
Other revenues—affiliate	$ 1,500,000
LNG Terminal Capacity Agreements [Member] | SPL [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Percentage Of Committed Monthly Payment	100.00%
LNG Terminal Capacity Agreements [Member] | SPL [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Percentage Of Committed Monthly Payment	0.00%
Service Agreements [Member]
Related Party Transaction [Line Items]
Advances to affiliate	$ 7,000,000		7,200,000
General and administrative expense—affiliate	2,200,000	2,800,000
Operating and maintenance expense—affiliate	(7,200,000)	(3,800,000)
Operation and Maintenance Agreement [Member] | Cheniere Investments [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Committed Monthly Fee	$ 130,000
Related Party Transaction, Bonus Percentage of Salary of Salary Entitled Upon Meeting Certain Criteria	50.00%
Management Services Agreement [Member] | Cheniere Terminals [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Committed Monthly Fee	$ 520,000
Cooperative Endeavor Agreements [Member]
Related Party Transaction [Line Items]
Tax Initiative Agreement Term	10 years
Cooperative Endeavor Agreements [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Aggregate commitment under the Agreement	$ 25,000,000
Cooperative Endeavor Agreements [Member] | Cheniere Marketing [Member]
Related Party Transaction [Line Items]
Advance ad valorem tax payments	24,500,000		$ 22,100,000
Contracts for Sale and Purchase of Natural Gas [Member] | SPL [Member]
Related Party Transaction [Line Items]
Other revenues—affiliate	2,700,000
Regasification revenues—affiliate	300,000
Contracts for Sale and Purchase of Natural Gas [Member] | Cheniere Marketing [Member]
Related Party Transaction [Line Items]
Operating and maintenance expense—affiliate	(700,000)	(1,600,000)
Regasification revenues—affiliate	900,000	1,300,000
LNG Site Sublease Agreement [Member] | SPL [Member]
Related Party Transaction [Line Items]
Operating and maintenance expense—affiliate	200,000	100,000
Annual sublease income	$ 900,000	500,000
Lessee Leasing Arrangements, Operating Leases, Renewal Term	10 years
Review Period for Inflation Adjustment	5 years
LNG Terminal Export Agreement [Member] | Cheniere Marketing [Member]
Related Party Transaction [Line Items]
Regasification revenues—affiliate	$ 0	0
Cooperation Agreement [Member] | SPL [Member]
Related Party Transaction [Line Items]
Assets conveyed under the agreement	252,800,000	700,000
Tax Sharing Agreement [Member] | Cheniere [Member]
Related Party Transaction [Line Items]
Income Taxes Paid, Net	0
Tug Services [Member] | Tug Boat Lease Sharing Agreement [Member] | Wholly owned subsidiary of Cheniere [Member]
Related Party Transaction [Line Items]
Regasification revenues—affiliate	$ 600,000	$ 700,000

Supplemental Cash Flow Inform30

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Supplemental Cash Flow Information [Abstract]
Non-cash contributions for conveyance of assets under Cooperation Agreement	$ 252,801	$ 745
Non-cash contributions from limited partner for certain operating activities	2,165	0
Construction in Progress Expenditures Incurred but Not yet Paid	$ 1,400	$ 0