Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2022 |
Document Transition Report | false |
Entity File Number | 333-192373 |
Entity Registrant Name | Sabine Pass Liquefaction, LLC |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 27-3235920 |
Entity Address, Address Line One | 700 Milam Street |
Entity Address, Address Line Two | Suite 1900 |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77002 |
City Area Code | 713 |
Local Phone Number | 375-5000 |
Title of 12(b) Security | None |
Entity 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 | 0001499200 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 0 |
Statements of Income
Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Revenues | $ 4,098 | $ 1,808 | $ 7,343 | $ 3,691 |
Revenues from contracts with customers | 4,094 | 1,808 | 7,339 | 3,691 |
Operating costs and expenses | ||||
Cost of sales (excluding items shown separately below) | 3,144 | 888 | 5,705 | 1,836 |
Cost of sales—affiliate | 72 | 24 | 90 | 76 |
Cost of sales—related party | 1 | 1 | 1 | 1 |
Operating and maintenance expense | 162 | 144 | 310 | 274 |
Operating and maintenance expense—affiliate | 118 | 115 | 235 | 228 |
Operating and maintenance expense—related party | 15 | 12 | 27 | 22 |
General and administrative expense (recovery) | (3) | 1 | (2) | 2 |
General and administrative expense—affiliate | 17 | 14 | 34 | 29 |
Depreciation and amortization expense | 134 | 116 | 264 | 233 |
Other | 0 | 2 | 0 | 2 |
Total operating costs and expenses | 3,660 | 1,317 | 6,664 | 2,703 |
Income from operations | 438 | 491 | 679 | 988 |
Other expense | ||||
Interest expense, net of capitalized interest | (170) | (158) | (326) | (318) |
Total other expense | (170) | (158) | (326) | (318) |
Net income | 268 | 333 | 353 | 670 |
LNG [Member] | ||||
Revenues | ||||
Revenues | 2,959 | 1,597 | 5,447 | 3,266 |
Revenues from contracts with customers | 2,955 | 1,597 | 5,443 | 3,266 |
LNG—affiliate | ||||
Revenues | ||||
Revenues from contracts with customers | 1,135 | 211 | 1,892 | 425 |
LNG—related party [Member] | ||||
Revenues | ||||
Revenues from contracts with customers | $ 4 | $ 0 | $ 4 | $ 0 |
Balance Sheets
Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Restricted cash and cash equivalents | $ 78 | $ 98 |
Trade and other receivables, net of current expected credit losses | 718 | 571 |
Accounts receivable—affiliate | 478 | 232 |
Accounts receivable—related party | 0 | 1 |
Advances to affiliate | 116 | 127 |
Inventory | 155 | 159 |
Current derivative assets | 153 | 21 |
Other current assets | 67 | 60 |
Other current assets—affiliate | 22 | 21 |
Total current assets | 1,787 | 1,290 |
Property, plant and equipment, net of accumulated depreciation | 14,501 | 14,433 |
Debt issuance costs, net of accumulated amortization | 6 | 7 |
Derivative assets | 36 | 33 |
Other non-current assets, net | 171 | 171 |
Total assets | 16,501 | 15,934 |
Current liabilities | ||
Accounts payable | 28 | 18 |
Accrued liabilities | 1,485 | 1,012 |
Accrued liabilities—related party | 6 | 4 |
Current debt, net of discount and debt issuance costs | 1,497 | 0 |
Due to affiliates | 52 | 73 |
Deferred revenue | 102 | 132 |
Current derivative liabilities | 478 | 16 |
Total current liabilities | 3,648 | 1,255 |
Long-term debt, net of premium, discount and debt issuance costs | 11,537 | 13,023 |
Derivative liabilities | 3,178 | 11 |
Other non-current liabilities | 7 | 7 |
Other non-current liabilities—affiliate | 20 | 17 |
Member's equity (deficit) | (1,889) | 1,621 |
Total liabilities and member's equity (deficit) | $ 16,501 | $ 15,934 |
Statements of Member's Equity
Statements of Member's Equity - USD ($) $ in Millions | Total | Sabine Pass LNG-LP, LLC [Member] |
Members' equity, beginning of period at Dec. 31, 2020 | $ 958 | $ 958 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Distributions | (310) | (310) |
Net income | 337 | 337 |
Member's equity, end of period at Mar. 31, 2021 | 985 | 985 |
Members' equity, beginning of period at Dec. 31, 2020 | 958 | 958 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Net income | 670 | |
Member's equity, end of period at Jun. 30, 2021 | 990 | 990 |
Members' equity, beginning of period at Mar. 31, 2021 | 985 | 985 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Distributions | (328) | (328) |
Net income | 333 | 333 |
Member's equity, end of period at Jun. 30, 2021 | 990 | 990 |
Members' equity, beginning of period at Dec. 31, 2021 | 1,621 | 1,621 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Novated IPM Agreement | (2,712) | (2,712) |
Distributions | (563) | (563) |
Net income | 85 | 85 |
Member's equity, end of period at Mar. 31, 2022 | (1,569) | (1,569) |
Members' equity, beginning of period at Dec. 31, 2021 | 1,621 | 1,621 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Net income | 353 | |
Member's equity, end of period at Jun. 30, 2022 | (1,889) | (1,889) |
Members' equity, beginning of period at Mar. 31, 2022 | (1,569) | (1,569) |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Distributions | (588) | (588) |
Net income | 268 | 268 |
Member's equity, end of period at Jun. 30, 2022 | $ (1,889) | $ (1,889) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 353 | $ 670 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 264 | 233 |
Amortization of debt issuance costs, premium and discount | 12 | 11 |
Losses (gains) on derivative instruments, net | 819 | (54) |
Net cash provided by (used for) settlement of derivative instruments | (37) | 18 |
Other | 7 | 2 |
Changes in operating assets and liabilities: | ||
Trade and other receivables, net of current expected credit losses | (213) | 29 |
Accounts receivable—affiliate | (262) | 119 |
Advances to affiliate | 12 | 11 |
Inventory | 3 | (8) |
Accounts payable and accrued liabilities | 458 | (61) |
Accrued liabilities—related party | 2 | 0 |
Due to affiliates | (4) | (17) |
Deferred revenue | (30) | (30) |
Deferred revenue—affiliate | 0 | 11 |
Other, net | (23) | (34) |
Other, net—affiliate | 3 | 0 |
Net cash provided by operating activities | 1,364 | 900 |
Cash flows from investing activities | ||
Property, plant and equipment | (233) | (294) |
Other | 0 | 1 |
Net cash used in investing activities | (233) | (293) |
Cash flows from financing activities | ||
Debt issuance and other financing costs | 0 | (1) |
Distributions | (1,151) | (638) |
Net cash used in financing activities | (1,151) | (639) |
Net decrease in restricted cash and cash equivalents | (20) | (32) |
Restricted cash and cash equivalents—beginning of period | 98 | 97 |
Restricted cash and cash equivalents—end of period | $ 78 | $ 65 |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION We are a Delaware limited liability company formed by CQP. We are a Houston-based company with one member, Sabine Pass LNG-LP, LLC, an indirect wholly owned subsidiary of CQP. We and SPLNG are each indirect wholly owned subsidiaries of Cheniere Investments, which is a wholly owned subsidiary of CQP, a publicly traded limited partnership (NYSE MKT: CQP). CQP is a 48.6% owned subsidiary of Cheniere, a Houston-based energy company primarily engaged in LNG-related businesses. Cheniere also owns 100% of the general partner interest in CQP through ownership in Cheniere Energy Partners GP, LLC. The natural gas liquefaction and export facility located in Cameron Parish, Louisiana at Sabine Pass (the “Sabine Pass LNG Terminal”) has six operational Trains, with Train 6 achieving substantial completion on February 4, 2022, for a total production capacity of approximately 30 mtpa of LNG (the “Liquefaction Project”). The Sabine Pass LNG Terminal also has operational regasification facilities owned by SPLNG. 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 Sabine Pass LNG Terminal, which provides opportunity for further liquefaction capacity expansion. 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 final investment decision. Basis of Presentation The accompanying unaudited Financial Statements of SPL have been prepared in accordance with GAAP for interim financial information and in accordance 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 and should be read in conjunction with the Financial Statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended December 31, 2021 . We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss is included in the federal income tax return of CQP, a publicly traded partnership which indirectly owns us. CQP is not subject to federal or state income taxes, as its partners are taxed individually on their allocable share of CQP’s taxable income. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Financial Statements. Results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2022. 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 debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The optional expedients were available to be used upon issuance of this guidance but we have not yet applied the guidance because we have not yet modified any of our existing contracts for reference rate reform. Once we apply an optional expedient to a modified contract and adopt this standard, the guidance will be applied to all subsequent applicable contract modifications until December 31, 2022, at which time the optional expedients are no longer available. |
Restricted Cash and Cash Equiva
Restricted Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2022 | |
Restricted Cash and Cash Equivalents [Abstract] | |
Restricted Cash and Cash Equivalents | RESTRICTED CASH AND CASH EQUIVALENTSRestricted cash and cash equivalents consist of funds that are contractually or legally restricted as to usage or withdrawal. As of June 30, 2022 and December 31, 2021, we had $78 million and $98 million of restricted cash and cash equivalents, respectively.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. |
Trade and Other Receivables, Ne
Trade and Other Receivables, Net of Current Expected Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
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): June 30, December 31, 2022 2021 Trade receivables $ 648 $ 546 Other receivables 70 25 Total trade and other receivables, net of current expected credit losses $ 718 $ 571 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following (in millions): June 30, December 31, 2022 2021 Materials $ 80 $ 71 LNG 33 44 Natural gas 41 43 Other 1 1 Total inventory $ 155 $ 159 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net of Accumulated Depreciation | 6 Months Ended |
Jun. 30, 2022 | |
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): June 30, December 31, 2022 2021 LNG terminal Terminal $ 16,203 $ 13,751 Construction-in-process 576 2,699 Accumulated depreciation (2,281) (2,021) Total LNG terminal, net of accumulated depreciation 14,498 14,429 Fixed assets Fixed assets 19 19 Accumulated depreciation (16) (15) Total fixed assets, net of accumulated depreciation 3 4 Property, plant and equipment, net of accumulated depreciation $ 14,501 $ 14,433 The following table shows depreciation expense and offsets to LNG terminal costs (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Depreciation expense $ 132 $ 115 $ 261 $ 231 Offsets to LNG terminal costs (1) — — 148 — |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS We have entered into commodity derivatives consisting of natural gas supply contracts, including those under our IPM agreement, for the operation of the Liquefaction Project (“Physical Liquefaction Supply Derivatives”) and associated economic hedges (“Financial Liquefaction Supply Derivatives,” and collectively with the Physical Liquefaction Supply Derivatives, the “Liquefaction Supply Derivatives”). We recognize our derivative instruments as either assets or liabilities and measure those instruments at fair value. None of our derivative instruments are designated as cash flow or fair value hedging instruments, and changes in fair value are recorded within our Statements of Income to the extent not utilized for the commissioning process, in which case such changes are capitalized. The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis (in millions): Fair Value Measurements as of June 30, 2022 December 31, 2021 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) $ 4 $ (15) $ (3,456) $ (3,467) $ 2 $ (13) $ 38 $ 27 We value our 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 our Physical Liquefaction Supply Derivatives is predominantly driven by observable and unobservable market commodity prices and, as applicable to our natural gas supply contracts, our assessment of the associated events deriving fair value including, but not limited to, evaluation of whether the respective market exists from the perspective of market participants as infrastructure is developed. We include a portion of our Physical Liquefaction Supply Derivatives as Level 3 within the valuation hierarchy as the fair value is developed through the use of internal models which incorporate significant unobservable inputs. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks, such as future prices of energy units for unobservable periods, liquidity and volatility. The Level 3 fair value measurements of natural gas positions within our Physical Liquefaction Supply Derivatives could be materially impacted by a significant change in certain natural gas and international LNG prices. The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of June 30, 2022 and December 31, 2021: Net Fair Value Liability Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $(3,456) Market approach incorporating present value techniques Henry Hub basis spread $(1.845) - $0.765 / $0.032 Option pricing model International LNG pricing spread, relative to Henry Hub (2) 97% - 604% / 217% (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 our Physical Liquefaction Supply Derivatives. The following table shows the changes in the fair value of our Level 3 Physical Liquefaction Supply Derivatives (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance, beginning of period $ (3,162) $ (36) $ 38 $ (21) Realized and mark-to-market gains (losses): Included in cost of sales (309) 67 63 58 Purchases and settlements: Purchases (1) 8 1 (3,549) — Settlements 7 1 (8) (4) Balance, end of period $ (3,456) $ 33 $ (3,456) $ 33 Change in unrealized gains (losses) relating to instruments still held at end of period $ (309) $ 67 $ 63 $ 58 (1) Includes any assignments during the 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 our derivative contracts with the same counterparty and the unconditional contractual right of set-off on a net basis. The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments in instances when our derivative instruments are in an asset position. Additionally, counterparties are at risk that we will be unable to meet our commitments in instances where our derivative instruments are in a liability position. We incorporate both our own nonperformance risk and the respective counterparty’s nonperformance risk in fair value measurements depending on the position of the derivative. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of any applicable credit enhancements, such as collateral postings, set-off rights and guarantees. Liquefaction Supply Derivatives We hold Liquefaction Supply Derivatives which are primarily indexed to the natural gas market and international LNG indices. The remaining minimum terms of the Physical Liquefaction Supply Derivatives range up to 15 years, some of which commence upon the satisfaction of certain conditions precedent. The terms of the Financial Liquefaction Supply Derivatives range up to approximately two years. The forward notional amount for our Liquefaction Supply Derivatives was approximately 5,484 TBtu and 5,194 TBtu as of June 30, 2022 and December 31, 2021, respectively, excluding notional amounts associated with extension options that were uncertain to be taken as of June 30, 2022. The following table shows the effect and location of our Liquefaction Supply Derivatives recorded on our Statements of Income (in millions): Gain (Loss) Recognized in Statements of Income Statements of Income Location (1) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues $ 4 $ — $ 4 $ — Cost of sales (298) 56 (823) 54 (1) Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. Fair Value and Location of Derivative Assets and Liabilities on the Balance Sheets The following table shows the fair value and location of our Liquefaction Supply Derivatives on our Balance Sheets (in millions): Fair Value Measurements as of (1) Balance Sheets Location June 30, 2022 December 31, 2021 Current derivative assets $ 153 $ 21 Derivative assets 36 33 Total derivative assets 189 54 Current derivative liabilities (478) (16) Derivative liabilities (3,178) (11) Total derivative liabilities (3,656) (27) Derivative asset (liability), net $ (3,467) $ 27 (1) Does not include collateral posted with counterparties by us of $9 million and $7 million, as of June 30, 2022 and December 31, 2021, respectively, which are included in other current assets in our Balance Sheets. Balance Sheets Presentation The following table shows the fair value of our derivatives outstanding on a gross and net basis (in millions) for our derivative instruments that are presented on a net basis on our Balance Sheets: Liquefaction Supply Derivatives As of June 30, 2022 Gross assets $ 232 Offsetting amounts (43) Net assets $ 189 Gross liabilities $ (3,681) Offsetting amounts 25 Net liabilities $ (3,656) As of December 31, 2021 Gross assets $ 79 Offsetting amounts (25) Net assets $ 54 Gross liabilities $ (33) Offsetting amounts 6 Net liabilities $ (27) |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of the following (in millions): June 30, December 31, 2022 2021 Natural gas purchases $ 1,160 $ 786 Interest costs and related debt fees 136 133 Liquefaction Project costs 184 89 Other accrued liabilities 5 4 Total accrued liabilities $ 1,485 $ 1,012 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consisted of the following (in millions): June 30, December 31, 2022 2021 Senior Secured Notes: 5.625% due 2023 $ 1,500 $ 1,500 5.75% due 2024 2,000 2,000 5.625% due 2025 2,000 2,000 5.875% due 2026 1,500 1,500 5.00% due 2027 1,500 1,500 4.200% due 2028 1,350 1,350 4.500% due 2030 2,000 2,000 4.27% weighted average rate due 2037 1,282 1,282 Total Senior Secured Notes 13,132 13,132 Working capital revolving credit and letter of credit reimbursement agreement (the “Working Capital Facility”) — — Total debt 13,132 13,132 Short-term debt (1,497) — Unamortized premium, discount and debt issuance costs, net (98) (109) Total long-term debt, net of premium, discount and debt issuance costs $ 11,537 $ 13,023 Working Capital Facility Below is a summary of our Working Capital Facility as of June 30, 2022 (in millions): Working Capital Facility Total facility size $ 1,200 Less: Outstanding balance — Letters of credit issued 363 Available commitment $ 837 Priority ranking Senior secured Interest rate on available balance LIBOR plus 1.125% - 1.750% or base rate plus 0.125% - 0.750% Commitment fees on undrawn balance 0.15% Maturity date March 19, 2025 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 our 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, deposits are made into any required debt service reserve accounts and a historical debt service coverage ratio and projected debt service coverage ratio of at least 1.25:1.00 is satisfied. As of June 30, 2022, 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Total interest cost $ 177 $ 190 $ 354 $ 380 Capitalized interest (7) (32) (28) (62) Total interest expense, net of capitalized interest $ 170 $ 158 $ 326 $ 318 Fair Value Disclosures The following table shows the carrying amount and estimated fair value of our debt (in millions): June 30, 2022 December 31, 2021 Carrying Estimated Carrying Estimated Senior notes — Level 2 (1) $ 11,850 $ 11,863 $ 11,850 $ 13,128 Senior notes — Level 3 (2) 1,282 1,204 1,282 1,466 (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 Working Capital Facility 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 from Contracts with Cu
Revenues from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | REVENUES FROM CONTRACTS WITH CUSTOMERS The following table represents a disaggregation of revenue earned from contracts with customers (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues $ 2,955 $ 1,597 $ 5,443 $ 3,266 LNG revenues—affiliate 1,135 211 1,892 425 LNG revenues—related party 4 — 4 — Total revenues from customers 4,094 1,808 7,339 3,691 Net derivative gain (1) 4 — 4 — Total revenues $ 4,098 $ 1,808 $ 7,343 $ 3,691 (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 Balance Sheets (in millions): June 30, December 31, 2022 2021 Contract assets, net of current expected credit losses $ 1 $ 1 The following table reflects the changes in our contract liabilities, which we classify as deferred revenue on our Balance Sheets (in millions): Six Months Ended June 30, 2022 Deferred revenue, beginning of period $ 132 Cash received but not yet recognized in revenue 102 Revenue recognized from prior period deferral (132) Deferred revenue, end of period $ 102 The following table reflects the changes in our contract liabilities to affiliate, which we classify as other non-current liabilities—affiliate on our Balance Sheets (in millions): Six Months Ended June 30, 2022 Deferred revenue—affiliate, beginning of period $ 2 Cash received but not yet recognized in revenue 5 Revenue recognized from prior period deferral (2) Deferred revenue—affiliate, end of period $ 5 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: June 30, 2022 December 31, 2021 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) LNG revenues $ 52.3 9 $ 49.3 9 LNG revenues—affiliate 2.1 3 2.1 3 Total revenues $ 54.4 $ 51.4 (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. Approximately 75% and 55% of our LNG revenues from contracts included in the table above during the three months ended June 30, 2022 and 2021, respectively, and approximately 72% and 53% of our LNG revenues from contracts included in the table above during the six months ended June 30, 2022 and 2021, respectively, were related to variable consideration received from customers. Approximately 100% and 91% of our LNG revenues—affiliate from contracts included in the table above during the three and six months ended June 30, 2022 and 2021, respectively, were related to variable consideration received from customers. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Below is a summary of our related party transactions as reported on our Statements of Income (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues—affiliate Cheniere Marketing Agreements $ 1,100 $ 209 $ 1,845 $ 419 Contracts for Sale and Purchase of Natural Gas and LNG 35 2 47 6 Total LNG revenues—affiliate 1,135 211 1,892 425 LNG revenues—related party Natural Gas Transportation and Storage Agreements 4 1 4 — Cost of sales—affiliate Cheniere Marketing Agreements — — — 34 Cargo loading fees under TUA 12 11 25 22 Contracts for Sale and Purchase of Natural Gas and LNG 60 13 65 20 Total cost of sales—affiliate 72 24 90 76 Cost of sales—related party Natural Gas Transportation and Storage Agreements 1 1 1 1 Operating and maintenance expense—affiliate TUA 67 67 133 133 Natural Gas Transportation Agreement 20 20 40 40 Services Agreements 30 27 61 54 LNG Site Sublease Agreement 1 1 1 1 Total operating and maintenance expense—affiliate 118 115 235 228 Operating and maintenance expense—related party Natural Gas Transportation and Storage Agreements 15 12 27 22 General and administrative expense—affiliate Services Agreements 17 14 34 29 As of June 30, 2022 and December 31, 2021, we had $478 million and $232 million, respectively, of accounts receivable—affiliate under the agreements described below. LNG Terminal-Related Agreements Terminal Use Agreements We have a TUA with SPLNG to provide berthing for LNG vessels and for the unloading, loading, storage and regasification of LNG. We have reserved approximately 2 Bcf/d of regasification capacity and we are obligated to make monthly capacity payments to SPLNG aggregating approximately $250 million per year (the “TUA Fees”), continuing until at least May 2036. We obtained this reserved capacity as a result of an assignment in July 2012 by Cheniere Investments of its rights, title and interest under its TUA. CQP has guaranteed our obligations under our TUA. Cargo loading fees incurred under the TUA are recorded as cost of sales—affiliate, except for the portion related to commissioning activities which is capitalized as LNG terminal construction-in-process. Cheniere Marketing Agreements Cheniere Marketing SPA Cheniere Marketing has an SPA (“Base SPA”) with us to purchase, at Cheniere Marketing’s option, any LNG produced by us in excess of that required for other customers at a price of 115% of Henry Hub plus $3.00 per MMBtu of LNG. The Base SPA was subsequently amended to remove certain conditions related to the sale of LNG from Trains 5 and 6 of the Liquefaction Project and provide that cargoes rejected by Cheniere Marketing under the Base SPA can be sold by us to Cheniere Marketing at a contract price equal to a portion of the estimated net profits from the sale of such cargo. Cheniere Marketing Master SPA We have an agreement with Cheniere Marketing that allows us to sell and purchase LNG with Cheniere Marketing by executing and delivering confirmations under this agreement. Cheniere Marketing Letter Agreements In May 2022, we and Cheniere Marketing entered into a letter agreement for the sale of up to 32 TBtu of LNG to be delivered between 2023 and 2025 at a price of 115% of Henry Hub plus $3.00 per MMBtu. Cheniere Marketing has letter agreements with us to purchase up to 306 cargoes of LNG to be delivered between 2022 and 2027 at a weighted average price of $1.95 plus 115% of Henry Hub. We and Cheniere Marketing had a letter agreement for the sale of up to 30 cargoes of LNG that were delivered in 2021 at a price of 115% of Henry Hub plus $0.728 per MMBtu. Facility Swap Agreement In August 2020, we entered into 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 (i) 115% of the applicable natural gas feedstock purchase price or (ii) a free-on-board U.S. Gulf Coast LNG market price, whichever is greater. Natural Gas Transportation and Storage Agreements To ensure we are able to transport adequate natural gas feedstock to the Sabine Pass LNG Terminal, we have transportation agreements to secure firm pipeline transportation capacity with CTPL, a wholly owned subsidiary of CQP, and third party pipeline companies. These agreements with CTPL have a primary term that continues until 20 years from May 2016 and thereafter continue in effect from year to year until terminated by either party upon written notice of one year or the term of the agreements, whichever is less. In addition, we have the right to elect to extend the term of the agreements for up to two consecutive terms of 10 years. Maximum rates, charges and fees shall be applicable for the entitlements and quantities delivered pursuant to the agreements unless CTPL has advised us that it has agreed otherwise. As of June 30, 2022 and December 31, 2021, we recorded due to affiliates of $7 million and $8 million, respectively, related to this agreement. We are also party to various natural gas transportation and storage agreements with a related party in the ordinary course of business for the operation of the Liquefaction Project, with initial primary terms of up to 10 years with extension rights. This related party is partially owned by the investment management company that indirectly acquired a portion of CQP’s limited partner interests in September 2020. We recorded accrued liabilities—related party of $6 million and $4 million as of June 30, 2022 and December 31, 2021, respectively, with this related party. Services Agreements As of June 30, 2022 and December 31, 2021, we had $116 million and $127 million of advances to affiliates, respectively, under the services agreements described below. The non-reimbursement amounts incurred under these agreements are recorded in general and administrative expense—affiliate. Cheniere Investments Information Technology Services Agreement Cheniere Investments has an information technology services agreement with Cheniere, pursuant to which Cheniere Investments’ subsidiaries, including us, receive certain information technology services. On a quarterly basis, the various entities receiving the benefit are invoiced by Cheniere Investments according to the cost allocation percentages set forth in the agreement. In addition, Cheniere is entitled to reimbursement for all costs incurred by Cheniere that are necessary to perform the services under the agreement. Liquefaction O&M Agreement We have an operation and maintenance agreement (the “Liquefaction O&M Agreement”) with Cheniere Investments, a wholly owned subsidiary of CQP, pursuant to which we receive all necessary services required to operate and maintain the Liquefaction Project. After each Train of the Liquefaction Project is operational, the services include all necessary services required to operate and maintain the Train. Prior to the substantial completion of each Train of the Liquefaction Project, in addition to reimbursement of operating expenses, we are required to pay a monthly fee equal to 0.6% of the capital expenditures incurred in the previous month. After substantial completion of each Train, for services performed while the Train is operational, we are required to pay, in addition to the reimbursement of operating expenses, a fixed monthly fee of $83,333 (indexed for inflation) for services with respect to the Train through 2042. Liquefaction MSA We have a management services agreement (the “Liquefaction MSA”) with Cheniere Terminals pursuant to which Cheniere Terminals manages the operation of the Liquefaction Project, excluding those matters provided for under the Liquefaction O&M Agreement. The services include, among other services, exercising the day-to-day management of our affairs and business, managing our regulatory matters, managing bank and brokerage accounts and financial books and records of our business and operations, entering into financial derivatives on our behalf and providing contract administration services for all contracts associated with the Liquefaction Project. Prior to the substantial completion of each Train of the Liquefaction Project, we are required to pay a monthly fee equal to 2.4% of the capital expenditures incurred in the previous month. After substantial completion of each Train, we are required to pay a fixed monthly fee of $541,667 (indexed for inflation) for services with respect to such Train through 2042. LNG Site Sublease Agreement We have agreements with SPLNG to sublease a portion of the Sabine Pass LNG Terminal site for the Liquefaction Project. The aggregate annual sublease payment is $1 million. The initial terms of the subleases expire on December 31, 2034, with options to renew for multiple periods of 10 years with similar terms as the initial terms. The annual sublease payments will be adjusted for inflation every five years based on a consumer price index, as defined in the sublease agreements. Cooperation Agreement We have a cooperation agreement with SPLNG that allows us to retain and acquire certain rights to access the property and facilities that are owned by SPLNG for the purpose of constructing, modifying and operating the Liquefaction Project. In consideration for access given to us, we have agreed to transfer to SPLNG title of certain facilities, equipment and modifications, which SPLNG is obligated to operate and maintain. The term of this agreement is consistent with our TUA described above. We did not convey any assets to SPLNG under this agreement during the three months ended June 30, 2022 and 2021. Contracts for Sale and Purchase of Natural Gas and LNG We have agreements with SPLNG, CTPL and Corpus Christi Liquefaction, LLC (“CCL”) that allow us to sell and purchase natural gas and LNG with each party. Natural gas purchased under these agreements is initially recorded as inventory and then to cost of sales—affiliate upon its sale, except for purchases related to commissioning activities which are capitalized as LNG terminal construction-in-process. Natural gas sold under these agreements is recorded as LNG revenues—affiliate. State Tax Sharing Agreement We have a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which we and Cheniere are required to file on a combined basis and to timely pay the combined state and local tax liability. If Cheniere, in its sole discretion, demands payment, we will pay to Cheniere an amount equal to the state and local tax that we would be required to pay if our state and local tax liability were calculated on a separate company basis. To date, there have been no state and local tax payments demanded by Cheniere under the tax sharing agreement. The agreement is effective for tax returns due on or after August 2012. |
Customer Concentration
Customer Concentration | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | CUSTOMER CONCENTRATION The following table shows external customers with revenues of 10% or greater of total revenues from external customers and external customers with trade and other receivables, net of current expected credit losses and contract assets, net of current expected credit losses balances of 10% or greater of total trade and other receivables, net of current expected credit losses from external customers and contract assets, net of current expected credit losses from external customers, respectively: Percentage of Total Revenues from External Customers Percentage of Trade and Other Receivables, Net and Contract Assets, Net from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2022 2021 2022 2021 2022 2021 Customer A 24% 26% 26% 27% 20% 29% Customer B 18% 18% 16% 16% 19% 17% Customer C 18% 17% 18% 18% 13% * Customer D 16% 16% 16% 16% 17% 14% Customer E 13% 10% 12% * * 13% Customer F * * * * * 12% * Less than 10% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
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): Six Months Ended June 30, 2022 2021 Cash paid during the period for interest on debt, net of amounts capitalized $ 311 $ 307 The balance in property, plant and equipment, net of accumulated depreciation funded with accounts payable and accrued liabilities (including affiliate) was $332 million and $246 million as of June 30, 2022 and 2021, respectively. Novation of IPM Agreement from Corpus Christi Liquefaction Stage III, LLC (“CCL Stage III”) |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation The accompanying unaudited Financial Statements of SPL have been prepared in accordance with GAAP for interim financial information and in accordance 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 and should be read in conjunction with the Financial Statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended December 31, 2021 |
Income Taxes, Policy | We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss is included in the federal income tax return of CQP, a publicly traded partnership which indirectly owns us. CQP is not subject to federal or state income taxes, as its partners are taxed individually on their allocable share of CQP’s taxable income. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying 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 debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The optional expedients were available to be used upon issuance of this guidance but we have not yet applied the guidance because we have not yet modified any of our existing contracts for reference rate reform. Once we apply an optional expedient to a modified contract and adopt this standard, the guidance will be applied to all subsequent applicable contract modifications until December 31, 2022, at which time the optional expedients are no longer available. |
Trade and Other Receivables, _2
Trade and Other Receivables, Net of Current Expected Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts 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): June 30, December 31, 2022 2021 Trade receivables $ 648 $ 546 Other receivables 70 25 Total trade and other receivables, net of current expected credit losses $ 718 $ 571 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in millions): June 30, December 31, 2022 2021 Materials $ 80 $ 71 LNG 33 44 Natural gas 41 43 Other 1 1 Total inventory $ 155 $ 159 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net of Accumulated Depreciation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net of Accumulated Depreciation | Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): June 30, December 31, 2022 2021 LNG terminal Terminal $ 16,203 $ 13,751 Construction-in-process 576 2,699 Accumulated depreciation (2,281) (2,021) Total LNG terminal, net of accumulated depreciation 14,498 14,429 Fixed assets Fixed assets 19 19 Accumulated depreciation (16) (15) Total fixed assets, net of accumulated depreciation 3 4 Property, plant and equipment, net of accumulated depreciation $ 14,501 $ 14,433 |
Schedule of Depreciation and Offsets to LNG Terminal Costs | The following table shows depreciation expense and offsets to LNG terminal costs (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Depreciation expense $ 132 $ 115 $ 261 $ 231 Offsets to LNG terminal costs (1) — — 148 — |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Assets and Liabilities | The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis (in millions): Fair Value Measurements as of June 30, 2022 December 31, 2021 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) $ 4 $ (15) $ (3,456) $ (3,467) $ 2 $ (13) $ 38 $ 27 |
Fair Value Measurement Inputs and Valuation Techniques | The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of June 30, 2022 and December 31, 2021: Net Fair Value Liability Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $(3,456) Market approach incorporating present value techniques Henry Hub basis spread $(1.845) - $0.765 / $0.032 Option pricing model International LNG pricing spread, relative to Henry Hub (2) 97% - 604% / 217% (1) Unobservable inputs were weighted by the relative fair value of the instruments. (2) Spread contemplates U.S. dollar-denominated pricing. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table shows the changes in the fair value of our Level 3 Physical Liquefaction Supply Derivatives (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance, beginning of period $ (3,162) $ (36) $ 38 $ (21) Realized and mark-to-market gains (losses): Included in cost of sales (309) 67 63 58 Purchases and settlements: Purchases (1) 8 1 (3,549) — Settlements 7 1 (8) (4) Balance, end of period $ (3,456) $ 33 $ (3,456) $ 33 Change in unrealized gains (losses) relating to instruments still held at end of period $ (309) $ 67 $ 63 $ 58 (1) Includes any assignments during the period. |
Derivative Instruments, Gain (Loss) | The following table shows the effect and location of our Liquefaction Supply Derivatives recorded on our Statements of Income (in millions): Gain (Loss) Recognized in Statements of Income Statements of Income Location (1) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues $ 4 $ — $ 4 $ — Cost of sales (298) 56 (823) 54 |
Fair Value of Derivative Instruments by Balance Sheet Location | The following table shows the fair value and location of our Liquefaction Supply Derivatives on our Balance Sheets (in millions): Fair Value Measurements as of (1) Balance Sheets Location June 30, 2022 December 31, 2021 Current derivative assets $ 153 $ 21 Derivative assets 36 33 Total derivative assets 189 54 Current derivative liabilities (478) (16) Derivative liabilities (3,178) (11) Total derivative liabilities (3,656) (27) Derivative asset (liability), net $ (3,467) $ 27 |
Derivative Net Presentation on Balance Sheets | The following table shows the fair value of our derivatives outstanding on a gross and net basis (in millions) for our derivative instruments that are presented on a net basis on our Balance Sheets: Liquefaction Supply Derivatives As of June 30, 2022 Gross assets $ 232 Offsetting amounts (43) Net assets $ 189 Gross liabilities $ (3,681) Offsetting amounts 25 Net liabilities $ (3,656) As of December 31, 2021 Gross assets $ 79 Offsetting amounts (25) Net assets $ 54 Gross liabilities $ (33) Offsetting amounts 6 Net liabilities $ (27) |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in millions): June 30, December 31, 2022 2021 Natural gas purchases $ 1,160 $ 786 Interest costs and related debt fees 136 133 Liquefaction Project costs 184 89 Other accrued liabilities 5 4 Total accrued liabilities $ 1,485 $ 1,012 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt consisted of the following (in millions): June 30, December 31, 2022 2021 Senior Secured Notes: 5.625% due 2023 $ 1,500 $ 1,500 5.75% due 2024 2,000 2,000 5.625% due 2025 2,000 2,000 5.875% due 2026 1,500 1,500 5.00% due 2027 1,500 1,500 4.200% due 2028 1,350 1,350 4.500% due 2030 2,000 2,000 4.27% weighted average rate due 2037 1,282 1,282 Total Senior Secured Notes 13,132 13,132 Working capital revolving credit and letter of credit reimbursement agreement (the “Working Capital Facility”) — — Total debt 13,132 13,132 Short-term debt (1,497) — Unamortized premium, discount and debt issuance costs, net (98) (109) Total long-term debt, net of premium, discount and debt issuance costs $ 11,537 $ 13,023 |
Schedule of Line of Credit Facilities | Below is a summary of our Working Capital Facility as of June 30, 2022 (in millions): Working Capital Facility Total facility size $ 1,200 Less: Outstanding balance — Letters of credit issued 363 Available commitment $ 837 Priority ranking Senior secured Interest rate on available balance LIBOR plus 1.125% - 1.750% or base rate plus 0.125% - 0.750% Commitment fees on undrawn balance 0.15% Maturity date March 19, 2025 |
Schedule of Interest Expense | Total interest expense, net of capitalized interest consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Total interest cost $ 177 $ 190 $ 354 $ 380 Capitalized interest (7) (32) (28) (62) Total interest expense, net of capitalized interest $ 170 $ 158 $ 326 $ 318 |
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): June 30, 2022 December 31, 2021 Carrying Estimated Carrying Estimated Senior notes — Level 2 (1) $ 11,850 $ 11,863 $ 11,850 $ 13,128 Senior notes — Level 3 (2) 1,282 1,204 1,282 1,466 (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 from Contracts with _2
Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a disaggregation of revenue earned from contracts with customers (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues $ 2,955 $ 1,597 $ 5,443 $ 3,266 LNG revenues—affiliate 1,135 211 1,892 425 LNG revenues—related party 4 — 4 — Total revenues from customers 4,094 1,808 7,339 3,691 Net derivative gain (1) 4 — 4 — Total revenues $ 4,098 $ 1,808 $ 7,343 $ 3,691 (1) See Note 6—Derivative Instruments for additional information about our derivatives. |
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 Balance Sheets (in millions): June 30, December 31, 2022 2021 Contract assets, net of current expected credit losses $ 1 $ 1 |
Contract Balances Reconciliation | The following table reflects the changes in our contract liabilities, which we classify as deferred revenue on our Balance Sheets (in millions): Six Months Ended June 30, 2022 Deferred revenue, beginning of period $ 132 Cash received but not yet recognized in revenue 102 Revenue recognized from prior period deferral (132) Deferred revenue, end of period $ 102 The following table reflects the changes in our contract liabilities to affiliate, which we classify as other non-current liabilities—affiliate on our Balance Sheets (in millions): Six Months Ended June 30, 2022 Deferred revenue—affiliate, beginning of period $ 2 Cash received but not yet recognized in revenue 5 Revenue recognized from prior period deferral (2) Deferred revenue—affiliate, end of period $ 5 |
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: June 30, 2022 December 31, 2021 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) LNG revenues $ 52.3 9 $ 49.3 9 LNG revenues—affiliate 2.1 3 2.1 3 Total revenues $ 54.4 $ 51.4 (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) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Below is a summary of our related party transactions as reported on our Statements of Income (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues—affiliate Cheniere Marketing Agreements $ 1,100 $ 209 $ 1,845 $ 419 Contracts for Sale and Purchase of Natural Gas and LNG 35 2 47 6 Total LNG revenues—affiliate 1,135 211 1,892 425 LNG revenues—related party Natural Gas Transportation and Storage Agreements 4 1 4 — Cost of sales—affiliate Cheniere Marketing Agreements — — — 34 Cargo loading fees under TUA 12 11 25 22 Contracts for Sale and Purchase of Natural Gas and LNG 60 13 65 20 Total cost of sales—affiliate 72 24 90 76 Cost of sales—related party Natural Gas Transportation and Storage Agreements 1 1 1 1 Operating and maintenance expense—affiliate TUA 67 67 133 133 Natural Gas Transportation Agreement 20 20 40 40 Services Agreements 30 27 61 54 LNG Site Sublease Agreement 1 1 1 1 Total operating and maintenance expense—affiliate 118 115 235 228 Operating and maintenance expense—related party Natural Gas Transportation and Storage Agreements 15 12 27 22 General and administrative expense—affiliate Services Agreements 17 14 34 29 |
Customer Concentration (Tables)
Customer Concentration (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue and Accounts Receivable by Major Customers | The following table shows external customers with revenues of 10% or greater of total revenues from external customers and external customers with trade and other receivables, net of current expected credit losses and contract assets, net of current expected credit losses balances of 10% or greater of total trade and other receivables, net of current expected credit losses from external customers and contract assets, net of current expected credit losses from external customers, respectively: Percentage of Total Revenues from External Customers Percentage of Trade and Other Receivables, Net and Contract Assets, Net from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2022 2021 2022 2021 2022 2021 Customer A 24% 26% 26% 27% 20% 29% Customer B 18% 18% 16% 16% 19% 17% Customer C 18% 17% 18% 18% 13% * Customer D 16% 16% 16% 16% 17% 14% Customer E 13% 10% 12% * * 13% Customer F * * * * * 12% * Less than 10% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides supplemental disclosure of cash flow information (in millions): Six Months Ended June 30, 2022 2021 Cash paid during the period for interest on debt, net of amounts capitalized $ 311 $ 307 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) | 6 Months Ended |
Jun. 30, 2022 milliontonnes / yr trains members | |
Nature of Operations and Basis of Presentation [Line Items] | |
Limited Liability Company (LLC) Number Of Members | members | 1 |
Cheniere Energy Partners, LP | Cheniere [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 48.60% |
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 100% |
Sabine Pass LNG Terminal [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Liquefaction LNG Trains Operating | trains | 6 |
Total Production Capability | milliontonnes / yr | 30 |
Restricted Cash and Cash Equi_2
Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | $ 78 | $ 98 |
SPL Project [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | $ 78 | $ 98 |
Trade and Other Receivables, _3
Trade and Other Receivables, Net of Current Expected Credit Losses (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade receivables | $ 648 | $ 546 |
Other receivables | 70 | 25 |
Total trade and other receivables, net of current expected credit losses | $ 718 | $ 571 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Inventory | $ 155 | $ 159 |
Materials [Member] | ||
Inventory [Line Items] | ||
Inventory | 80 | 71 |
LNG [Member] | ||
Inventory [Line Items] | ||
Inventory | 33 | 44 |
Natural gas [Member] | ||
Inventory [Line Items] | ||
Inventory | 41 | 43 |
Other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 1 | $ 1 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net of Accumulated Depreciation - Schedule of Property, Plant and Equipment, Net of Accumulated Depreciation (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | $ 14,501 | $ 14,433 |
LNG terminal costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (2,281) | (2,021) |
Property, plant and equipment, net of accumulated depreciation | 14,498 | 14,429 |
LNG terminal [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,203 | 13,751 |
LNG terminal construction-in-process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 576 | 2,699 |
Fixed assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19 | 19 |
Accumulated depreciation | (16) | (15) |
Property, plant and equipment, net of accumulated depreciation | $ 3 | $ 4 |
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 | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Property, Plant and Equipment [Abstract] | |||||
Depreciation expense | $ 132 | $ 115 | $ 261 | $ 231 | |
Offsets to LNG terminal costs | [1] | $ 0 | $ 0 | $ 148 | $ 0 |
[1]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. |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - tbtu | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 5,484 | 5,194 |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 15 years | |
Financial Liquefaction Supply Derivatives | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 2 years |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (3,467) | $ 27 |
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 | 4 | 2 |
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 | (15) | (13) |
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 | $ (3,456) | $ 38 |
Derivative Instruments - Fair_2
Derivative Instruments - Fair Value Inputs - Quantitative Information (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net Fair Value Liabilities | $ (3,467,000,000) | $ 27,000,000 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net Fair Value Liabilities | (3,456,000,000) | $ 38,000,000 | |
Physical Liquefaction Supply Derivatives [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net Fair Value Liabilities | (3,456,000,000) | ||
Physical Liquefaction Supply Derivatives [Member] | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Valuation, Market Approach | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant Unobservable Inputs Range | [1] | $ (1.845) | |
Physical Liquefaction Supply Derivatives [Member] | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Valuation Technique, Option Pricing Model | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value Inputs Basis Spread Percentage | [1],[2] | 97% | |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Valuation, Market Approach | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant Unobservable Inputs Range | [1] | $ 0.765 | |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Valuation Technique, Option Pricing Model | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value Inputs Basis Spread Percentage | [1],[2] | 604% | |
Physical Liquefaction Supply Derivatives [Member] | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Valuation, Market Approach | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Significant Unobservable Inputs Range | [1] | $ 0.032 | |
Physical Liquefaction Supply Derivatives [Member] | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Valuation Technique, Option Pricing Model | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value Inputs Basis Spread Percentage | [1],[2] | 217% | |
[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 | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | $ (3,162) | $ (36) | $ 38 | $ (21) | |
Realized and mark-to-market losses: | |||||
Included in cost of sales | (309) | 67 | 63 | 58 | |
Purchases and settlements: | |||||
Purchases | [1] | 8 | 1 | (3,549) | 0 |
Settlements | 7 | 1 | (8) | (4) | |
Balance, end of period | (3,456) | 33 | (3,456) | 33 | |
Change in unrealized gains (losses) relating to instruments still held at end of period | $ (309) | $ 67 | $ 63 | $ 58 | |
[1]Includes any assignments during the period. |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
LNG revenues [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | $ 4 | $ 0 | $ 4 | $ 0 |
Cost of sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | $ (298) | $ 56 | $ (823) | $ 54 |
[1]Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. |
Derivative Instruments - Fair_3
Derivative Instruments - Fair Value of Derivative Instruments by Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | $ 153 | $ 21 | |
Derivative assets | 36 | 33 | |
Total derivative assets | [1] | 189 | 54 |
Current derivative liabilities | (478) | (16) | |
Derivative liabilities | (3,178) | (11) | |
Total derivative liabilities | [1] | (3,656) | (27) |
Derivative asset (liability), net | [1] | (3,467) | 27 |
Derivative, collateral posted by us | 9 | 7 | |
Current derivative assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | [1] | 153 | 21 |
Derivative assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [1] | 36 | 33 |
Current derivative liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative liabilities | [1] | (478) | (16) |
Derivative liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [1] | $ (3,178) | $ (11) |
[1]Does not include collateral posted with counterparties by us of $9 million and $7 million, as of June 30, 2022 and December 31, 2021, respectively, which are included in other current assets in our Balance Sheets. |
Derivative Instruments - Deri_2
Derivative Instruments - Derivative Net Presentation on Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Net Amounts Presented in our Balance Sheets | $ (3,467) | $ 27 |
Liquefaction Supply Derivatives Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | 232 | 79 |
Derivative Asset, Gross Amounts Offset in the Balance Sheets | (43) | (25) |
Net Amounts Presented in our Balance Sheets | 189 | 54 |
Liquefaction Supply Derivatives Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (3,681) | (33) |
Derivative Liability, Gross Amounts Offset in the Balance Sheets | 25 | 6 |
Net Amounts Presented in our Balance Sheets | $ (3,656) | $ (27) |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Natural gas purchases | $ 1,160 | $ 786 |
Interest costs and related debt fees | 136 | 133 |
Liquefaction Project costs | 184 | 89 |
Other accrued liabilities | 5 | 4 |
Total accrued liabilities | $ 1,485 | $ 1,012 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 13,132 | $ 13,132 |
Long-term Debt, Current Maturities | (1,497) | 0 |
Unamortized premium, discount and debt issuance costs, net | (98) | (109) |
Long-Term Debt, Total | 11,537 | 13,023 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 13,132 | 13,132 |
2023 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500 | 1,500 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2024 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 2,000 | 2,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |
2025 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 2,000 | 2,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2026 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500 | 1,500 |
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | |
2027 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500 | 1,500 |
Debt Instrument, Interest Rate, Stated Percentage | 5% | |
2028 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,350 | 1,350 |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |
2030 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 2,000 | 2,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
2037 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,282 | 1,282 |
2037 Senior Notes [Member] | Weighted Average [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.27% | |
Working Capital Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 0 | $ 0 |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 USD ($) unit Rate | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 13,132 | $ 13,132 |
Debt, Minimum Historical Debt Service Coverage Ratio And Projected Debt Service Coverage Ratio | unit | 1.25 | |
Working Capital Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Total facility size | $ 1,200 | |
Outstanding balance | 0 | $ 0 |
Letters of credit issued | 363 | |
Available commitment | $ 837 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | |
Line of Credit Facility, Commitment Fee Percentage | 0.15% | |
Debt Instrument, Maturity Date | Mar. 19, 2025 | |
Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.125% | |
Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.75% | |
Working Capital Facility [Member] | Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.125% | |
Working Capital Facility [Member] | Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.75% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Total interest cost | $ 177 | $ 190 | $ 354 | $ 380 |
Capitalized interest | (7) | (32) | (28) | (62) |
Total interest expense, net of capitalized interest | $ 170 | $ 158 | $ 326 | $ 318 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - Senior Notes [Member] - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Carrying Amount [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [1] | $ 11,850 | $ 11,850 |
Carrying Amount [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [2] | 1,282 | 1,282 |
Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [1] | 11,863 | 13,128 |
Estimated Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [2] | $ 1,204 | $ 1,466 |
[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 from Contracts with _3
Revenues from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 4,094 | $ 1,808 | $ 7,339 | $ 3,691 | |
Net derivative gain | [1] | 4 | 0 | 4 | 0 |
Revenues | 4,098 | 1,808 | 7,343 | 3,691 | |
LNG [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 2,955 | 1,597 | 5,443 | 3,266 | |
Revenues | 2,959 | 1,597 | 5,447 | 3,266 | |
LNG—affiliate | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 1,135 | 211 | 1,892 | 425 | |
LNG—related party [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 4 | $ 0 | $ 4 | $ 0 | |
[1] See Note 6—Derivative Instruments for additional information about our derivatives. |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net of current expected credit losses | $ 1 | $ 1 |
Change In Contract With Customer, Liability [Roll Forward] | ||
Deferred revenue, beginning of period | 132 | |
Cash received but not yet recognized in revenue | 102 | |
Revenue recognized from prior period deferral | (132) | |
Deferred revenue, end of period | 102 | |
Deferred revenue, beginning of period | 2 | |
Cash received but not yet recognized in revenue | 5 | |
Revenue recognized from prior period deferral | (2) | |
Deferred revenue, end of period | $ 5 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Schedule of Transaction Price Allocated to Future Performance Obligations (Details) - USD ($) $ in Billions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 51.4 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 54.4 | $ 54.4 | ||||
LNG [Member] | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue, Variable Consideration Received From Customers, Percentage | 75% | 55% | 72% | 53% | ||
LNG [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 49.3 | |||||
Weighted Average Recognition Timing | [1] | 9 years | ||||
LNG [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 52.3 | $ 52.3 | ||||
Weighted Average Recognition Timing | [1] | 9 years | 9 years | |||
LNG—affiliate | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue, Variable Consideration Received From Customers, Percentage | 100% | 91% | 100% | 91% | ||
LNG—affiliate | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 2.1 | |||||
Weighted Average Recognition Timing | [1] | 3 years | ||||
LNG—affiliate | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 2.1 | $ 2.1 | ||||
Weighted Average Recognition Timing | [1] | 3 years | 3 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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
LNG revenues—affiliate | $ 1,135 | $ 211 | $ 1,892 | $ 425 |
Cost of sales—affiliate | 72 | 24 | 90 | 76 |
Cost of sales—related party | 1 | 1 | 1 | 1 |
Operating and maintenance expense—affiliate | 118 | 115 | 235 | 228 |
Operating and maintenance expense—related party | 15 | 12 | 27 | 22 |
General and administrative expense—affiliate | 17 | 14 | 34 | 29 |
Cheniere Marketing Agreements [Member] | ||||
Related Party Transaction [Line Items] | ||||
LNG revenues—affiliate | 1,100 | 209 | 1,845 | 419 |
Cost of sales—affiliate | 0 | 0 | 0 | 34 |
Contracts for Sale and Purchase of Natural Gas And LNG [Member] | ||||
Related Party Transaction [Line Items] | ||||
LNG revenues—affiliate | 35 | 2 | 47 | 6 |
Cost of sales—affiliate | 60 | 13 | 65 | 20 |
Natural Gas Transportation and Storage Agreements [Member] | ||||
Related Party Transaction [Line Items] | ||||
LNG revenues—related party | 4 | 1 | 4 | 0 |
Cost of sales—related party | 1 | 1 | 1 | 1 |
Operating and maintenance expense—related party | 15 | 12 | 27 | 22 |
Terminal Use Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of sales—affiliate | 12 | 11 | 25 | 22 |
Operating and maintenance expense—affiliate | 67 | 67 | 133 | 133 |
Natural Gas Transportation Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating and maintenance expense—affiliate | 20 | 20 | 40 | 40 |
Service Agreements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating and maintenance expense—affiliate | 30 | 27 | 61 | 54 |
General and administrative expense—affiliate | 17 | 14 | 34 | 29 |
LNG Site Sublease Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating and maintenance expense—affiliate | $ 1 | $ 1 | $ 1 | $ 1 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2022 USD ($) bcf / d tbtu item Cargo | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | ||
Accounts receivable—affiliate | $ 478,000,000 | $ 232,000,000 |
Due to affiliates | 52,000,000 | 73,000,000 |
Accrued liabilities—related party | 6,000,000 | 4,000,000 |
Advances to affiliate | $ 116,000,000 | 127,000,000 |
Natural Gas Transportation and Storage Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Agreement Term | 10 years | |
Accrued liabilities—related party | $ 6,000,000 | 4,000,000 |
Service Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Advances to affiliate | $ 116,000,000 | 127,000,000 |
Affiliated Entity [Member] | Facility Swap Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115% | |
SPLNG [Member] | Terminal Use Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Regasification Capacity | bcf / d | 2 | |
Related Party Transaction, Committed Annual Fee | $ 250,000,000 | |
SPLNG [Member] | LNG Site Sublease Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Annual Sublease Payment | $ 1,000,000 | |
Term of available extension | 10 years | |
Review Period for Inflation Adjustment | 5 years | |
SPLNG [Member] | Cooperation Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Assets conveyed under the agreement | $ 0 | |
Cheniere Investments [Member] | Operation and Maintenance Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Monthly fee as a percentage of capital expenditures incurred in the previous month | 0.60% | |
Related Party Transaction, Committed Monthly Fee | $ 83,333 | |
Cheniere Marketing [Member] | Cheniere Marketing SPA [Member] | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115% | |
LNG Volume, Purchase Price | $ 3 | |
Cheniere Marketing [Member] | 2022 Letter Agreement | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115% | |
LNG Volume, Purchase Price | $ 3 | |
Cheniere Marketing [Member] | 2022 Letter Agreement | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Volume | tbtu | 32 | |
Cheniere Marketing [Member] | 2022-2027 Letter Agreement | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115% | |
LNG Volume, Weighted Average Purchase Price Per MMBtu | $ 1.95 | |
Cheniere Marketing [Member] | 2022-2027 Letter Agreement | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Cargoes | Cargo | 306 | |
Cheniere Marketing [Member] | 2021 Letter Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115% | |
LNG Volume, Purchase Price | $ 0.728 | |
Cheniere Marketing [Member] | 2021 Letter Agreement [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Cargoes | Cargo | 30 | |
Cheniere Terminals [Member] | Management Services Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Monthly fee as a percentage of capital expenditures incurred in the previous month | 2.40% | |
Related Party Transaction, Committed Monthly Fee | $ 541,667 | |
Cheniere [Member] | Tax Sharing Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Income Taxes Paid, Net | $ 0 | |
CTPL [Member] | Natural Gas Transportation Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Agreement Term | 20 years | |
Related Party Agreement, Termination Notice Period | 1 year | |
Related Party Agreement, Number Of Available Extensions | item | 2 | |
Related Party Agreement, Term Of Available Extension | 10 years | |
Due to affiliates | $ 7,000,000 | $ 8,000,000 |
Customer Concentration - Schedu
Customer Concentration - Schedule of Customer Concentration (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Customer A [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 24% | 26% | 26% | 27% | |
Customer A [Member] | Accounts Receivable, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 20% | 29% | |||
Customer B [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 18% | 18% | 16% | 16% | |
Customer B [Member] | Accounts Receivable, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 19% | 17% | |||
Customer C [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 18% | 17% | 18% | 18% | |
Customer C [Member] | Accounts Receivable, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 13% | ||||
Customer D [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 16% | 16% | 16% | 16% | |
Customer D [Member] | Accounts Receivable, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 17% | 14% | |||
Customer E [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 13% | 10% | 12% | ||
Customer E [Member] | Accounts Receivable, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 13% | ||||
Customer F [Member] | Accounts Receivable, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 12% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 USD ($) MMBTU | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 15, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Supplemental Cash Flow Information [Abstract] | |||||
Cash paid during the period for interest on debt, net of amounts capitalized | $ 311 | $ 307 | |||
Balance in property, plant and equipment, net of accumulated depreciation funded with accounts payable and accrued liabilities (including affiliate) | 332 | $ 246 | |||
Nonmonetary Transaction [Line Items] | |||||
Novation of IPM agreement from Corpus Christi Liquefaction Stage III, LLC (“CCL Stage III”) | $ (2,700) | ||||
Current derivative liabilities | 478 | $ 16 | |||
Derivative liabilities | $ 3,178 | $ 11 | |||
Novation of IPM Agreement | Cheniere Corpus Christi Liquefaction Stage III | |||||
Nonmonetary Transaction [Line Items] | |||||
Contract Volume | MMBTU | 140,000 | ||||
IPM Agreement, Term of Agreement | 15 years | ||||
Current derivative liabilities | $ 142 | ||||
Derivative liabilities | $ 2,600 |