Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
Document Transition Report | false |
Entity File Number | 333-215435 |
Entity Registrant Name | Cheniere Corpus Christi Holdings, LLC |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 47-1929160 |
Entity Address, Address Line One | 700 Milam Street |
Entity Address, Address Line Two | Suite 1900 |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77002 |
City Area Code | 713 |
Local Phone Number | 375-5000 |
Title of 12(b) Security | None |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001693317 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Revenues | |||||
Revenues | $ 1,157 | $ 654 | $ 2,040 | $ 1,187 | |
Revenues from contracts with customers | 1,158 | 664 | 2,040 | 1,197 | |
Operating costs and expenses | |||||
Cost of sales (excluding items shown separately below) | 799 | 140 | 985 | 189 | |
Cost of sales—affiliate | 2 | 2 | 37 | 8 | |
Cost of sales—related party | 36 | 25 | 71 | 48 | |
Operating and maintenance expense | 120 | 95 | 203 | 184 | |
Operating and maintenance expense—affiliate | 28 | 25 | 52 | 45 | |
Operating and maintenance expense—related party | 3 | 2 | 5 | 2 | |
General and administrative expense | 2 | 2 | 3 | 4 | |
General and administrative expense—affiliate | 7 | 5 | 12 | 10 | |
Depreciation and amortization expense | 110 | 86 | 199 | 170 | |
Impairment expense and loss on disposal of assets | 1 | 0 | 1 | 0 | |
Total operating costs and expenses | 1,108 | 382 | 1,568 | 660 | |
Income from operations | 49 | 272 | 472 | 527 | |
Other expense | |||||
Interest expense, net of capitalized interest | (118) | (90) | (211) | (189) | |
Interest rate derivative loss, net | (2) | (25) | (1) | (233) | |
Other expense, net | 0 | (1) | 0 | 0 | |
Total other expense | (120) | (116) | (212) | (422) | |
Net income (loss) | (71) | 156 | 260 | 105 | |
LNG [Member] | |||||
Revenues | |||||
Revenues | 826 | 610 | 1,441 | 953 | |
Revenues from contracts with customers | [1] | 827 | 620 | 1,441 | 963 |
LNG—affiliate [Member] | |||||
Revenues | |||||
Revenues from contracts with customers | $ 331 | $ 44 | $ 599 | $ 234 | |
[1] | LNG revenues include revenues for LNG cargoes in which our customers exercised their contractual right to not take delivery but remained obligated to pay fixed fees irrespective of such election. During the three and six months ended June 30, 2020, we recognized $299 million and $336 million, respectively, in LNG revenues associated with LNG cargoes for which customers notified us that they would not take delivery, of which $200 million would have been recognized subsequent to June 30, 2020 had the cargoes been lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 and six months ended June 30, 2021 excluded $37 million and $38 million, respectively, that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers. We did not have revenues associated with LNG cargoes for which customers notified us that they would not take delivery during the three and six months ended June 30, 2021. Revenue is generally recognized upon receipt of irrevocable notice that a customer will not take delivery because our customers have no contractual right to take delivery of such LNG cargo in future periods and our performance obligations with respect to such LNG cargo have been satisfied. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Restricted cash | $ 122 | $ 70 |
Accounts and other receivables, net of current expected credit losses | 161 | 198 |
Accounts receivable—affiliate | 90 | 42 |
Advances to affiliate | 98 | 144 |
Inventory | 103 | 89 |
Current derivative assets | 26 | 10 |
Current derivative assets—related party | 4 | 3 |
Other current assets | 37 | 17 |
Other current assets—affiliate | 0 | 1 |
Total current assets | 641 | 574 |
Property, plant and equipment, net of accumulated depreciation | 12,787 | 12,853 |
Debt issuance and deferred financing costs, net of accumulated amortization | 9 | 11 |
Derivative assets | 35 | 114 |
Derivative assets—related party | 7 | 1 |
Other non-current assets, net | 109 | 87 |
Total assets | 13,588 | 13,640 |
Current liabilities | ||
Accounts payable | 34 | 19 |
Accrued liabilities | 318 | 318 |
Accrued liabilities—related party | 15 | 16 |
Current debt, net of discount and debt issuance costs | 131 | 269 |
Due to affiliates | 21 | 32 |
Current derivative liabilities | 271 | 143 |
Other current liabilities | 1 | 0 |
Total current liabilities | 791 | 797 |
Long-term debt, net of discount and debt issuance costs | 10,111 | 10,101 |
Derivative liabilities | 137 | 114 |
Other non-current liabilities | 2 | 4 |
Member’s equity | 2,547 | 2,624 |
Total liabilities and member’s equity | $ 13,588 | $ 13,640 |
Consolidated Statements of Memb
Consolidated Statements of Member's Equity - USD ($) $ in Millions | Total | Cheniere CCH HoldCo I, LLC [Member] |
Member's equity, beginning of period at Dec. 31, 2019 | $ 2,418 | $ 2,418 |
Net income (loss) | (51) | (51) |
Member's equity, end of period at Mar. 31, 2020 | 2,367 | 2,367 |
Member's equity, beginning of period at Dec. 31, 2019 | 2,418 | 2,418 |
Net income (loss) | 105 | |
Member's equity, end of period at Jun. 30, 2020 | 2,668 | 2,668 |
Member's equity, beginning of period at Mar. 31, 2020 | 2,367 | 2,367 |
Capital contributions | 145 | 145 |
Net income (loss) | 156 | 156 |
Member's equity, end of period at Jun. 30, 2020 | 2,668 | 2,668 |
Member's equity, beginning of period at Dec. 31, 2020 | 2,624 | 2,624 |
Net income (loss) | 331 | 331 |
Member's equity, end of period at Mar. 31, 2021 | 2,955 | 2,955 |
Member's equity, beginning of period at Dec. 31, 2020 | 2,624 | 2,624 |
Net income (loss) | 260 | |
Member's equity, end of period at Jun. 30, 2021 | 2,547 | 2,547 |
Member's equity, beginning of period at Mar. 31, 2021 | 2,955 | 2,955 |
Capital distributions | (337) | (337) |
Net income (loss) | (71) | (71) |
Member's equity, end of period at Jun. 30, 2021 | $ 2,547 | $ 2,547 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 260 | $ 105 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization expense | 199 | 170 |
Amortization of discount and debt issuance costs | 12 | 10 |
Total losses on derivatives, net | 249 | 90 |
Total gains on derivatives, net—related party | (7) | (2) |
Net cash used for settlement of derivative instruments | (35) | (20) |
Impairment expense and loss on disposal of assets | 1 | 0 |
Other | 1 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 34 | (225) |
Accounts receivable—affiliate | (48) | 57 |
Advances to affiliate | 56 | 10 |
Inventory | (9) | (6) |
Accounts payable and accrued liabilities | 65 | (67) |
Accrued liabilities—related party | 1 | 6 |
Due to affiliates | (4) | (2) |
Other, net | (42) | (39) |
Net cash provided by operating activities | 733 | 87 |
Cash flows from investing activities | ||
Property, plant and equipment | (203) | (350) |
Other | (1) | (2) |
Net cash used in investing activities | (204) | (352) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 0 | 141 |
Repayments of debt | (140) | 0 |
Capital contributions | 0 | 145 |
Distributions | (337) | 0 |
Net cash provided by (used in) financing activities | (477) | 286 |
Net increase in restricted cash | 52 | 21 |
Restricted cash—beginning of period | 70 | 80 |
Restricted cash—end of period | $ 122 | $ 101 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION We operate a natural gas liquefaction and export facility (the “Liquefaction Facilities”) and operate a 23-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with several interstate and intrastate natural gas pipelines (the “Corpus Christi Pipeline” and together with the Liquefaction Facilities, the “Liquefaction Project”) near Corpus Christi, Texas, through our subsidiaries CCL and CCP, respectively. We operate three Trains for a total production capacity of approximately 15 mtpa of LNG. The Liquefaction Project also contains three LNG storage tanks and two marine berths. Basis of Presentation The accompanying unaudited Consolidated Financial Statements of CCH have been prepared in accordance with GAAP for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended December 31, 2020. Results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2021. We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements. Recent Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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
Restricted Cash | 6 Months Ended |
Jun. 30, 2021 | |
Restricted Cash [Abstract] | |
Restricted Cash | RESTRICTED CASHRestricted cash consists of funds that are contractually or legally restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our Consolidated Balance Sheets. As of June 30, 2021 and December 31, 2020, we had $122 million and $70 million of restricted cash, 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. |
Accounts and Other Receivables,
Accounts and Other Receivables, Net of Current Expected Credit Losses | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Accounts and Other Receivables, Net of Current Expected Credit Losses | ACCOUNTS AND OTHER RECEIVABLES, NET OF CURRENT EXPECTED CREDIT LOSSES As of June 30, 2021 and December 31, 2020, accounts and other receivables, net of current expected credit losses consisted of the following (in millions): June 30, December 31, 2021 2020 Trade receivable $ 141 $ 182 Other accounts receivable 20 16 Total accounts and other receivables, net of current expected credit losses $ 161 $ 198 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY As of June 30, 2021 and December 31, 2020, inventory consisted of the following (in millions): June 30, December 31, 2021 2020 Materials $ 81 $ 69 LNG 10 11 Natural gas 11 9 Other 1 — Total inventory $ 103 $ 89 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net of Accumulated Depreciation | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net of Accumulated Depreciation | PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION As of June 30, 2021 and December 31, 2020, property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): June 30, December 31, 2021 2020 LNG terminal LNG terminal and interconnecting pipeline facilities $ 13,197 $ 10,176 LNG site and related costs 294 276 LNG terminal construction-in-process 52 2,960 Accumulated depreciation (763) (568) Total LNG terminal, net of accumulated depreciation 12,780 12,844 Fixed assets Fixed assets 22 22 Accumulated depreciation (15) (13) Total fixed assets, net of accumulated depreciation 7 9 Property, plant and equipment, net of accumulated depreciation $ 12,787 $ 12,853 The following table shows depreciation expense and offsets to LNG terminal costs during the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Depreciation expense $ 110 $ 86 $ 198 $ 170 Offsets to LNG terminal costs (1) — — 143 — (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 Liquefaction Project during the testing phase for its construction. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS We have entered into the following derivative instruments that are reported at fair value: • interest rate swaps (“CCH Interest Rate Derivatives”) to hedge the exposure to volatility in a portion of the floating-rate interest payments on our amended and restated credit facility (the “CCH Credit Facility”) and to hedge against changes in interest rates that could impact anticipated future issuance of debt (“CCH Interest Rate Forward Start Derivatives” and, collectively with the CCH Interest Rate Derivatives, the “Interest Rate Derivatives”) and • commodity derivatives consisting of natural gas supply contracts for the commissioning and operation of the Liquefaction Project (“Physical Liquefaction Supply Derivatives”) and associated economic hedges (“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 Consolidated Statements of Operations to the extent not utilized for the commissioning process, in which case it is 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 as of June 30, 2021 and December 31, 2020 (in millions): Fair Value Measurements as of June 30, 2021 December 31, 2020 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 CCH Interest Rate Derivatives liability $ — $ (91) $ — $ (91) $ — $ (140) $ — $ (140) Liquefaction Supply Derivatives asset (liability) 4 11 (260) (245) 4 (5) 12 11 We value our Interest Rate Derivatives using an income-based approach utilizing observable inputs to the valuation model including interest rate curves, risk adjusted discount rates, credit spreads and other relevant data. We value our Liquefaction Supply Derivatives using a market-based approach incorporating present value techniques, as needed, using observable commodity price curves, when available, and other relevant data. The fair value of our Physical Liquefaction Supply Derivatives is predominantly driven by observable and unobservable market commodity prices and, as applicable to our natural gas supply contracts, our assessment of the associated events deriving fair value, including evaluating whether the respective market is available as pipeline infrastructure is developed. The fair value of our Physical Liquefaction Supply Derivatives incorporates risk premiums related to the satisfaction of conditions precedent, such as completion and placement into service of relevant pipeline infrastructure to accommodate marketable physical gas flow. As of June 30, 2021 and December 31, 2020, some of our Physical Liquefaction Supply Derivatives existed within markets for which the pipeline infrastructure was under development to accommodate marketable physical gas flow. We include a portion of our Physical Liquefaction Supply Derivatives as Level 3 within the valuation hierarchy as the fair value is developed through the use of internal models which incorporate significant unobservable inputs. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks, such as future prices of energy units for unobservable periods, liquidity, volatility and contract duration. The Level 3 fair value measurements of natural gas positions within our Physical Liquefaction Supply Derivatives could be materially impacted by a significant change in certain natural gas 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, 2021: Net Fair Value Liability Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $(260) Market approach incorporating present value techniques Henry Hub basis spread $(0.573) - $0.385 / $(0.019) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 141% - 297% / 189% (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, including those with related parties, during the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Balance, beginning of period $ (14) $ 202 $ 12 $ 35 Realized and mark-to-market gains (losses): Included in cost of sales (255) (31) (314) 134 Purchases and settlements: Purchases 8 (3) 10 (3) Settlements 1 2 32 5 Transfers into Level 3, net (1) — 3 — 2 Balance, end of period $ (260) $ 173 $ (260) $ 173 Change in unrealized gains (losses) relating to instruments still held at end of period $ (255) $ (31) $ (314) $ 134 (1) Transferred into Level 3 as a result of unobservable market, or out of Level 3 as a result of observable market for the underlying natural gas purchase agreements. 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 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. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of any applicable credit enhancements, such as collateral postings, set-off rights and guarantees. Interest Rate Derivatives We have entered into interest rate swaps to protect against volatility of future cash flows and hedge a portion of the variable interest payments on the CCH Credit Facility. We previously also had interest rate swaps to hedge against changes in interest rates that could impact the anticipated future issuance of debt. In August 2020, we settled the outstanding CCH Interest Rate Forward Start Derivatives. As of June 30, 2021, we had the following Interest Rate Derivatives outstanding: Notional Amounts June 30, 2021 December 31, 2020 Latest Maturity Date Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received CCH Interest Rate Derivatives $4.6 billion $4.6 billion May 31, 2022 2.30% One-month LIBOR The following table shows the gain (loss) from changes in the fair value and settlements of our Interest Rate Derivatives recorded in interest rate derivative loss, net on our Consolidated Statements of Operations during the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 CCH Interest Rate Derivatives $ (2) $ (15) $ (1) $ (138) CCH Interest Rate Forward Start Derivatives — (10) — (95) Liquefaction Supply Derivatives CCL has entered into primarily index-based physical natural gas supply contracts and associated economic hedges, including those associated with our integrated production marketing (“IPM”) transactions, to purchase natural gas for the commissioning and operation of the Liquefaction Project. The remaining terms of the physical natural gas supply contracts range up to 10 years, some of which commence upon the satisfaction of certain conditions precedent. The terms of the Financial Liquefaction Supply Derivatives range up to approximately three years. The forward notional amount for our Liquefaction Supply Derivatives was approximately 3,191 TBtu and 3,152 TBtu as of June 30, 2021 and December 31, 2020, respectively, of which 132 TBtu and 60 TBtu, respectively, were for a natural gas supply contract CCL has with a related party. The following table shows the gain (loss) from changes in the fair value, settlements and location of our Liquefaction Supply Derivatives recorded on our Consolidated Statements of Operations during the three and six months ended June 30, 2021 and 2020 (in millions): Consolidated Statements of Operations Location (1) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 LNG revenues $ (1) $ (10) $ — $ (10) Cost of sales (237) (18) (248) 153 Cost of sales—related party 6 1 7 2 (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 Consolidated Balance Sheets The following table shows the fair value and location of our derivative instruments on our Consolidated Balance Sheets (in millions): June 30, 2021 CCH Interest Rate Derivatives Liquefaction Supply Derivatives (1) Total Consolidated Balance Sheets Location Current derivative assets $ — $ 26 $ 26 Current derivative assets—related party — 4 4 Derivative assets — 35 35 Non-current derivative assets—related party — 7 7 Total derivative assets — 72 72 Current derivative liabilities (91) (180) (271) Derivative liabilities — (137) (137) Total derivative liabilities (91) (317) (408) Derivative liability, net $ (91) $ (245) $ (336) December 31, 2020 CCH Interest Rate Derivatives Liquefaction Supply Derivatives (1) Total Consolidated Balance Sheets Location Current derivative assets $ — $ 10 $ 10 Current derivative assets—related party — 3 3 Derivative assets — 114 114 Derivative assets—related party — 1 1 Total derivative assets — 128 128 Current derivative liabilities (100) (43) (143) Derivative liabilities (40) (74) (114) Total derivative liabilities (140) (117) (257) Derivative asset (liability), net $ (140) $ 11 $ (129) (1) Does not include collateral posted with counterparties by us of $6 million and $5 million, which are included in other current assets in our Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020, respectively. Consolidated Balance Sheets Presentation Our derivative instruments are presented on a net basis on our Consolidated Balance Sheets as described above. The following table shows the fair value of our derivatives outstanding on a gross and net basis (in millions): CCH Interest Rate Derivatives Liquefaction Supply Derivatives As of June 30, 2021 Gross assets $ — $ 80 Offsetting amounts — (8) Net assets $ — $ 72 Gross liabilities $ (91) $ (368) Offsetting amounts — 51 Net liabilities $ (91) $ (317) As of December 31, 2020 Gross assets $ — $ 132 Offsetting amounts — (4) Net assets $ — $ 128 Gross liabilities $ (140) $ (136) Offsetting amounts — 19 Net liabilities $ (140) $ (117) |
Other Non-Current Assets, Net
Other Non-Current Assets, Net | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets, Noncurrent [Abstract] | |
Other Non-Current Assets, Net | OTHER NON-CURRENT ASSETS, NET As of June 30, 2021 and December 31, 2020, other non-current assets, net consisted of the following (in millions): June 30, December 31, 2021 2020 Contract assets, net of current expected credit losses $ 71 $ 48 Advances and other asset conveyances to third parties to support LNG terminal 20 22 Operating lease assets 5 5 Information technology service prepayments 3 3 Tax-related payments and receivables 2 3 Other 8 6 Total other non-current assets, net $ 109 $ 87 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES As of June 30, 2021 and December 31, 2020, accrued liabilities consisted of the following (in millions): June 30, December 31, 2021 2020 Interest costs and related debt fees $ 7 $ 7 Accrued natural gas purchases 229 186 Liquefaction Project costs 52 76 Other 30 49 Total accrued liabilities $ 318 $ 318 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of June 30, 2021 and December 31, 2020, our debt consisted of the following (in millions): June 30, December 31, 2021 2020 Long-term debt: 3.520% to 7.000% senior secured notes due between June 2024 and December 2039 and CCH Credit Facility $ 10,216 $ 10,217 Unamortized discount and debt issuance costs, net of accumulated amortization (105) (116) Total long-term debt, net of discount and debt issuance costs 10,111 10,101 Current debt: $1.2 billion CCH working capital facility (“CCH Working Capital Facility”) and current portion of CCH Credit Facility 132 271 Unamortized discount and debt issuance costs, net of accumulated amortization (1) (2) Total current debt, net of discount and debt issuance costs 131 269 Total debt, net of discount and debt issuance costs $ 10,242 $ 10,370 Credit Facilities Below is a summary of our credit facilities outstanding as of June 30, 2021 (in millions): CCH Credit Facility CCH Working Capital Facility Original facility size $ 8,404 $ 350 Incremental commitments 1,566 850 Less: Outstanding balance 2,627 — Commitments terminated 7,343 — Letters of credit issued — 293 Available commitment $ — $ 907 Priority ranking Senior secured Senior secured Interest rate on available balance LIBOR plus 1.75% or base rate plus 0.75% LIBOR plus 1.25% - 1.75% or base rate plus 0.25% - 0.75% Weighted average interest rate of outstanding balance 1.85% n/a Maturity date June 30, 2024 June 29, 2023 Restrictive Debt Covenants The indentures governing our senior notes and other agreements underlying our debt contain customary terms and events of default and certain covenants that, among other things, may limit us and our restricted subsidiaries’ ability to make certain investments or pay dividends or distributions. As of June 30, 2021, 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, 2021 2020 2021 2020 Total interest cost $ 118 $ 119 $ 237 $ 248 Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction — (29) (26) (59) Total interest expense, net of capitalized interest $ 118 $ 90 $ 211 $ 189 Fair Value Disclosures The following table shows the carrying amount and estimated fair value of our debt (in millions): June 30, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Senior notes — Level 2 (1) $ 5,750 $ 6,544 $ 5,750 $ 6,669 Senior notes — Level 3 (2) 1,971 2,342 1,971 2,387 Credit facilities — Level 3 (3) 2,627 2,627 2,767 2,767 (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. (3) The Level 3 estimated fair value approximates the principal amount 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, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | REVENUES FROM CONTRACTS WITH CUSTOMERS The following table represents a disaggregation of revenue earned from contracts with customers during the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 LNG revenues (1) $ 827 $ 620 $ 1,441 $ 963 LNG revenues—affiliate 331 44 599 234 Total revenues from customers 1,158 664 2,040 1,197 Net derivative losses (2) (1) (10) — (10) Total revenues $ 1,157 $ 654 $ 2,040 $ 1,187 (1) LNG revenues include revenues for LNG cargoes in which our customers exercised their contractual right to not take delivery but remained obligated to pay fixed fees irrespective of such election. During the three and six months ended June 30, 2020, we recognized $299 million and $336 million, respectively, in LNG revenues associated with LNG cargoes for which customers notified us that they would not take delivery, of which $200 million would have been recognized subsequent to June 30, 2020 had the cargoes been lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 and six months ended June 30, 2021 excluded $37 million and $38 million, respectively, that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers. We did not have revenues associated with LNG cargoes for which customers notified us that they would not take delivery during the three and six months ended June 30, 2021. Revenue is generally recognized upon receipt of irrevocable notice that a customer will not take delivery because our customers have no contractual right to take delivery of such LNG cargo in future periods and our performance obligations with respect to such LNG cargo have been satisfied. (2) See Note 6—Derivative Instruments for additional information about our derivatives. Contract Assets The following table shows our contract assets, net of current expected credit losses, which are classified as other current assets and other non-current assets, net on our Consolidated Balance Sheets (in millions): June 30, December 31, 2021 2020 Contract assets, net of current expected credit losses $ 72 $ 48 Contract assets represent our right to consideration for transferring goods or services to the customer under the terms of a sales contract when the associated consideration is not yet due. Changes in contract assets during the six months ended June 30, 2021 were primarily attributable to revenue recognized due to the delivery of LNG under certain SPAs for which the associated consideration was not yet due. Transaction Price Allocated to Future Performance Obligations Because many of our sales contracts have long-term durations, we are contractually entitled to significant future consideration which we have not yet recognized as revenue. The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Unsatisfied Weighted Average Recognition Timing (years) (1) Unsatisfied Weighted Average Recognition Timing (years) (1) LNG revenues $ 32.5 10 $ 32.3 10 LNG revenues—affiliate 1.0 12 1.0 12 Total revenues $ 33.5 $ 33.3 (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 49% and 18% of our LNG revenues from contracts included in the table above during the three months ended June 30, 2021 and 2020, respectively, and 48% and 24% of our LNG revenues from contracts included in the table above during the six months ended June 30, 2021 and 2020, respectively, were related to variable consideration received from customers. None of our LNG revenues—affiliates from the contract included in the table above were related to variable consideration received from customers during the three and six months ended June 30, 2021 and 2020. We may enter into contracts to sell LNG that are conditioned upon one or both of the parties achieving certain milestones such as reaching a final investment decision on a certain liquefaction Train, obtaining financing or achieving substantial completion of a Train and any related facilities. These contracts are considered completed contracts for revenue recognition purposes and are included in the transaction price above when the conditions are considered probable of being met. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Below is a summary of our related party transactions as reported on our Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 LNG revenues—affiliate Cheniere Marketing Agreements $ 319 $ 38 $ 579 $ 228 Contracts for Sale and Purchase of Natural Gas and LNG 12 6 20 6 Total LNG revenues—affiliate 331 44 599 234 Cost of sales—affiliate Contracts for Sale and Purchase of Natural Gas and LNG 2 2 6 8 Cheniere Marketing Agreements — — 31 — Total cost of sales—affiliate 2 2 37 8 Cost of sales—related party Natural Gas Supply Agreement 36 25 71 48 Operating and maintenance expense—affiliate Services Agreements 28 25 52 45 Operating and maintenance expense—related party Natural Gas Transportation Agreements 3 2 5 2 General and administrative expense—affiliate Services Agreements 7 5 12 10 We had $21 million and $32 million due to affiliates as of June 30, 2021 and December 31, 2020, respectively, under agreements with affiliates, as described below. Cheniere Marketing Agreements Cheniere Marketing SPA CCL has a fixed price SPA with Cheniere Marketing (the “Cheniere Marketing Base SPA”) with a term of 20 years which allows Cheniere Marketing to purchase, at its option, (1) up to a cumulative total of 150 TBtu of LNG within the commissioning periods for Trains 1 through 3 and (2) any excess LNG produced by the Liquefaction Facilities that is not committed to customers under third-party SPAs. Under the Cheniere Marketing Base SPA, Cheniere Marketing may, without charge, elect to suspend deliveries of cargoes (other than commissioning cargoes) scheduled for any month under the applicable annual delivery program by providing specified notice in advance. Additionally, CCL has: (1) a fixed price SPA with a term through 2043 with Cheniere Marketing which allows them to purchase volumes of approximately 15 TBtu per annum of LNG and (2) an SPA with Cheniere Marketing for approximately 44 TBtu of LNG with a maximum term up to 2026 associated with the integrated production marketing gas supply agreement between CCL and EOG Resources, Inc. As of June 30, 2021 and December 31, 2020, CCL had $87 million and $39 million of accounts receivable—affiliate, respectively, under these agreements with Cheniere Marketing. Train 3 Commissioning Letter Agreement Under the Cheniere Marketing Base SPA, CCL entered into a letter agreement with Cheniere Marketing for the sale of commissioning cargoes from Train 3 of the Liquefaction Project. Under the agreement, CCL paid a one-time shipping fee to Cheniere Marketing of $1 million after the commencement of the commissioning of Train 3 in December 2020. Facility Swap Agreement We have 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. Services Agreements Gas and Power Supply Services Agreement (“G&P Agreement”) CCL has a G&P Agreement with Cheniere Energy Shared Services, Inc. (“Shared Services”), a wholly owned subsidiary of Cheniere, pursuant to which Shared Services will manage the gas and power procurement requirements of CCL. The services include, among other services, exercising the day-to-day management of CCL’s natural gas and power supply requirements, negotiating agreements on CCL’s behalf and providing other administrative services. Prior to the substantial completion of each Train of the Liquefaction Facilities, no monthly fee payment is required except for reimbursement of operating expenses. After substantial completion of each Train of the Liquefaction Facilities, for services performed while the Liquefaction Facilities is operational, CCL will pay, in addition to the reimbursement of operating expenses, a fixed monthly fee of $125,000 (indexed for inflation) for services with respect to such Train. Operation and Maintenance Agreements (“O&M Agreements”) CCL has an O&M Agreement (“CCL O&M Agreement”) with Cheniere LNG O&M Services, LLC (“O&M Services”), a wholly owned subsidiary of Cheniere, pursuant to which CCL receives all of the necessary services required to construct, operate and maintain the Liquefaction Facilities. The services to be provided include, among other services, preparing and maintaining staffing plans, identifying and arranging for procurement of equipment and materials, overseeing contractors, administering various agreements, information technology services and other services required to operate and maintain the Liquefaction Facilities. Prior to the substantial completion of each Train of the Liquefaction Facilities, no monthly fee payment is required except for reimbursement of operating expenses. After substantial completion of each Train of the Liquefaction Facilities, for services performed while the Liquefaction Facilities is operational, CCL will pay, in addition to the reimbursement of operating expenses, a fixed monthly fee of $125,000 (indexed for inflation) for services with respect to such Train. CCP has an O&M Agreement (“CCP O&M Agreement”) with O&M Services pursuant to which CCP receives all of the necessary services required to construct, operate and maintain the Corpus Christi Pipeline. The services to be provided include, among other services, preparing and maintaining staffing plans, identifying and arranging for procurement of equipment and materials, overseeing contractors, information technology services and other services required to operate and maintain the Corpus Christi Pipeline. CCP is required to reimburse O&M Services for all operating expenses incurred on behalf of CCP. Management Services Agreements (“MSAs”) CCL has a MSA with Shared Services pursuant to which Shared Services manages the construction and operation of the Liquefaction Facilities, excluding those matters provided for under the G&P Agreement and the CCL O&M Agreement. The services include, among other services, exercising the day-to-day management of CCL’s affairs and business, managing CCL’s regulatory matters, preparing status reports, providing contract administration services for all contracts associated with the Liquefaction Facilities and obtaining insurance. Prior to the substantial completion of each Train of the Liquefaction Facilities, no monthly fee payment is required except for reimbursement of expenses. After substantial completion of each Train, CCL will pay, in addition to the reimbursement of related expenses, a monthly fee equal to 3% of the capital expenditures incurred in the previous month and a fixed monthly fee of $375,000 for services with respect to such Train. CCP has a MSA with Shared Services pursuant to which Shared Services manages CCP’s operations and business, excluding those matters provided for under the CCP O&M Agreement. The services include, among other services, exercising the day-to-day management of CCP’s affairs and business, managing CCP’s regulatory matters, preparing status reports, providing contract administration services for all contracts associated with the Corpus Christi Pipeline and obtaining insurance. CCP is required to reimburse Shared Services for the aggregate of all costs and expenses incurred in the course of performing the services under the MSA. Natural Gas Supply Agreement CCL is party to a natural gas supply agreement with a related party in the ordinary course of business, to obtain a fixed minimum daily volume of feed gas for the operation of the Liquefaction Project through March 2022. This related party is partially owned by the investment management company that also partially owns our affiliated entity. In addition to the amounts recorded on our Consolidated Statements of Operations in the table above, CCL recorded accrued liabilities—related party of $13 million and $13 million, current derivative assets—related party of $4 million and $3 million and derivative assets—related party of $7 million and $1 million as of June 30, 2021 and December 31, 2020, respectively, related to this agreement. Natural Gas Transportation Agreements Agreements with Related Party CCL is party to natural gas transportation agreements with a related party in the ordinary course of business for the operation of the Liquefaction Project, for a period of 10 years which began in May 2020. Cheniere accounts for its investment in this related party as an equity method investment. In addition to the amounts recorded on our Consolidated Statements of Operations in the table above, CCL recorded accrued liabilities—related party of $1 million as of both June 30, 2021 and December 31, 2020 related to this agreement. Agreements with Cheniere Corpus Christi Liquefaction Stage III, LLC Cheniere Corpus Christi Liquefaction Stage III, LLC, a wholly owned subsidiary of Cheniere, has a transportation precedent agreement with CCP to secure firm pipeline transportation capacity for the transportation of natural gas feedstock to the expansion of the Corpus Christi LNG terminal it is constructing adjacent to the Liquefaction Project. The agreement will have a primary term of 20 years from the service commencement date with right to extend the term for two successive five Contracts for Sale and Purchase of Natural Gas and LNG CCL has an agreement with Sabine Pass Liquefaction, LLC that allows them to sell and purchase natural gas with each other. Natural gas purchased under this agreement is initially recorded as inventory and then to cost of sales—affiliate upon its sale, except for purchases related to commissioning activities which are capitalized as LNG terminal construction-in-process. Natural gas sold under this agreement is recorded as LNG revenues—affiliate. CCL also has an agreement with Midship Pipeline Company, LLC that allows them to sell and purchase natural gas with each other. Land Agreements Lease Agreements CCL has agreements with Cheniere Land Holdings, LLC (“Cheniere Land Holdings”), a wholly owned subsidiary of Cheniere, to lease the land owned by Cheniere Land Holdings for the Liquefaction Facilities. The total annual lease payment is $0.6 million, and the terms of the agreements range from three Easement Agreements CCL has agreements with Cheniere Land Holdings which grant CCL easements on land owned by Cheniere Land Holdings for the Liquefaction Facilities. The total annual payment for easement agreements is $0.1 million, excluding any previously paid one-time payments, and the terms of the agreements range from three Dredge Material Disposal Agreement CCL has a dredge material disposal agreement with Cheniere Land Holdings that terminates in 2042 which grants CCL permission to use land owned by Cheniere Land Holdings for the deposit of dredge material from the construction and maintenance of the Liquefaction Facilities. Under the terms of the agreement, CCL will pay Cheniere Land Holdings $0.50 per cubic yard of dredge material deposits up to 5.0 million cubic yards and $4.62 per cubic yard for any quantities above that. Tug Hosting Agreement In February 2017, CCL entered into a tug hosting agreement with Corpus Christi Tug Services, LLC (“Tug Services”), a wholly owned subsidiary of Cheniere, to provide certain marine structures, support services and access necessary at the Liquefaction Facilities for Tug Services to provide its customers with tug boat and marine services. Tug Services is required to reimburse CCL for any third party costs incurred by CCL in connection with providing the goods and services. State Tax Sharing Agreements CCL has a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which CCL 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, CCL will pay to Cheniere an amount equal to the state and local tax that CCL would be required to pay if CCL’s state and local tax liability were calculated on a separate company basis. There have been no state and local taxes paid by Cheniere for which Cheniere could have demanded payment from CCL under this agreement; therefore, Cheniere has not demanded any such payments from CCL. The agreement is effective for tax returns due on or after May 2015. CCP has a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which CCP 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, CCP will pay to Cheniere an amount equal to the state and local tax that CCP would be required to pay if CCP’s state and local tax liability were calculated on a separate company basis. There have been no state and local taxes paid by Cheniere for which Cheniere could have demanded payment from CCP under this agreement; therefore, Cheniere has not demanded any such payments from CCP. The agreement is effective for tax returns due on or after May 2015. Equity Contribution Agreements Equity Contribution Agreement |
Customer Concentration
Customer Concentration | 6 Months Ended |
Jun. 30, 2021 | |
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 accounts receivable, net of current expected credit losses and contract assets, net of current expected credit losses balances of 10% or greater of total accounts receivable, net of current expected credit losses and contract assets, net of current expected credit losses from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable, Net and Contract Assets, Net from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2021 2020 2021 2020 2021 2020 Customer A 23% 32% 23% 39% 21% 15% Customer B 17% 19% 19% 17% 19% * Customer C 14% 14% 16% * 10% 10% Customer D * 10% * 11% 11% 16% Customer E * 10% * 12% 29% 27% * Less than 10% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 Cash paid during the period for interest, net of amounts capitalized $ 199 $ 179 The balance in property, plant and equipment, net of accumulated depreciation funded with accounts payable and accrued liabilities (including affiliate) was $28 million and $29 million as of June 30, 2021 and 2020, respectively. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation The accompanying unaudited Consolidated Financial Statements of CCH have been prepared in accordance with GAAP for interim financial information and 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 Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended December 31, 2020. |
Income Taxes, Policy | We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements. |
Recent Accounting Standards | Recent Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. |
Accounts and Other Receivable_2
Accounts and Other Receivables, Net of Current Expected Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | As of June 30, 2021 and December 31, 2020, accounts and other receivables, net of current expected credit losses consisted of the following (in millions): June 30, December 31, 2021 2020 Trade receivable $ 141 $ 182 Other accounts receivable 20 16 Total accounts and other receivables, net of current expected credit losses $ 161 $ 198 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of June 30, 2021 and December 31, 2020, inventory consisted of the following (in millions): June 30, December 31, 2021 2020 Materials $ 81 $ 69 LNG 10 11 Natural gas 11 9 Other 1 — Total inventory $ 103 $ 89 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net of Accumulated Depreciation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of June 30, 2021 and December 31, 2020, property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): June 30, December 31, 2021 2020 LNG terminal LNG terminal and interconnecting pipeline facilities $ 13,197 $ 10,176 LNG site and related costs 294 276 LNG terminal construction-in-process 52 2,960 Accumulated depreciation (763) (568) Total LNG terminal, net of accumulated depreciation 12,780 12,844 Fixed assets Fixed assets 22 22 Accumulated depreciation (15) (13) Total fixed assets, net of accumulated depreciation 7 9 Property, plant and equipment, net of accumulated depreciation $ 12,787 $ 12,853 |
Schedule of Depreciation and Offsets to LNG Terminal Costs | The following table shows depreciation expense and offsets to LNG terminal costs during the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Depreciation expense $ 110 $ 86 $ 198 $ 170 Offsets to LNG terminal costs (1) — — 143 — (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 Liquefaction Project during the testing phase for its construction. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value of Derivative Assets and Liabilities | The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020 (in millions): Fair Value Measurements as of June 30, 2021 December 31, 2020 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 CCH Interest Rate Derivatives liability $ — $ (91) $ — $ (91) $ — $ (140) $ — $ (140) Liquefaction Supply Derivatives asset (liability) 4 11 (260) (245) 4 (5) 12 11 |
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, 2021: Net Fair Value Liability Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $(260) Market approach incorporating present value techniques Henry Hub basis spread $(0.573) - $0.385 / $(0.019) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 141% - 297% / 189% (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table shows the changes in the fair value of our Level 3 Physical Liquefaction Supply Derivatives, including those with related parties, during the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Balance, beginning of period $ (14) $ 202 $ 12 $ 35 Realized and mark-to-market gains (losses): Included in cost of sales (255) (31) (314) 134 Purchases and settlements: Purchases 8 (3) 10 (3) Settlements 1 2 32 5 Transfers into Level 3, net (1) — 3 — 2 Balance, end of period $ (260) $ 173 $ (260) $ 173 Change in unrealized gains (losses) relating to instruments still held at end of period $ (255) $ (31) $ (314) $ 134 (1) Transferred into Level 3 as a result of unobservable market, or out of Level 3 as a result of observable market for the underlying natural gas purchase agreements. |
Fair Value of Derivative Instruments by Balance Sheet Location | The following table shows the fair value and location of our derivative instruments on our Consolidated Balance Sheets (in millions): June 30, 2021 CCH Interest Rate Derivatives Liquefaction Supply Derivatives (1) Total Consolidated Balance Sheets Location Current derivative assets $ — $ 26 $ 26 Current derivative assets—related party — 4 4 Derivative assets — 35 35 Non-current derivative assets—related party — 7 7 Total derivative assets — 72 72 Current derivative liabilities (91) (180) (271) Derivative liabilities — (137) (137) Total derivative liabilities (91) (317) (408) Derivative liability, net $ (91) $ (245) $ (336) December 31, 2020 CCH Interest Rate Derivatives Liquefaction Supply Derivatives (1) Total Consolidated Balance Sheets Location Current derivative assets $ — $ 10 $ 10 Current derivative assets—related party — 3 3 Derivative assets — 114 114 Derivative assets—related party — 1 1 Total derivative assets — 128 128 Current derivative liabilities (100) (43) (143) Derivative liabilities (40) (74) (114) Total derivative liabilities (140) (117) (257) Derivative asset (liability), net $ (140) $ 11 $ (129) (1) Does not include collateral posted with counterparties by us of $6 million and $5 million, which are included in other current assets in our Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020, respectively. |
Derivative Net Presentation on Consolidated Balance Sheets | The following table shows the fair value of our derivatives outstanding on a gross and net basis (in millions): CCH Interest Rate Derivatives Liquefaction Supply Derivatives As of June 30, 2021 Gross assets $ — $ 80 Offsetting amounts — (8) Net assets $ — $ 72 Gross liabilities $ (91) $ (368) Offsetting amounts — 51 Net liabilities $ (91) $ (317) As of December 31, 2020 Gross assets $ — $ 132 Offsetting amounts — (4) Net assets $ — $ 128 Gross liabilities $ (140) $ (136) Offsetting amounts — 19 Net liabilities $ (140) $ (117) |
Interest Rate Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2021, we had the following Interest Rate Derivatives outstanding: Notional Amounts June 30, 2021 December 31, 2020 Latest Maturity Date Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received CCH Interest Rate Derivatives $4.6 billion $4.6 billion May 31, 2022 2.30% One-month LIBOR |
Derivative Instruments, Gain (Loss) | The following table shows the gain (loss) from changes in the fair value and settlements of our Interest Rate Derivatives recorded in interest rate derivative loss, net on our Consolidated Statements of Operations during the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 CCH Interest Rate Derivatives $ (2) $ (15) $ (1) $ (138) CCH Interest Rate Forward Start Derivatives — (10) — (95) |
Liquefaction Supply Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Instruments, Gain (Loss) | The following table shows the gain (loss) from changes in the fair value, settlements and location of our Liquefaction Supply Derivatives recorded on our Consolidated Statements of Operations during the three and six months ended June 30, 2021 and 2020 (in millions): Consolidated Statements of Operations Location (1) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 LNG revenues $ (1) $ (10) $ — $ (10) Cost of sales (237) (18) (248) 153 Cost of sales—related party 6 1 7 2 (1) Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. |
Other Non-Current Assets, Net (
Other Non-Current Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Non-Current Assets | As of June 30, 2021 and December 31, 2020, other non-current assets, net consisted of the following (in millions): June 30, December 31, 2021 2020 Contract assets, net of current expected credit losses $ 71 $ 48 Advances and other asset conveyances to third parties to support LNG terminal 20 22 Operating lease assets 5 5 Information technology service prepayments 3 3 Tax-related payments and receivables 2 3 Other 8 6 Total other non-current assets, net $ 109 $ 87 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | As of June 30, 2021 and December 31, 2020, accrued liabilities consisted of the following (in millions): June 30, December 31, 2021 2020 Interest costs and related debt fees $ 7 $ 7 Accrued natural gas purchases 229 186 Liquefaction Project costs 52 76 Other 30 49 Total accrued liabilities $ 318 $ 318 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | As of June 30, 2021 and December 31, 2020, our debt consisted of the following (in millions): June 30, December 31, 2021 2020 Long-term debt: 3.520% to 7.000% senior secured notes due between June 2024 and December 2039 and CCH Credit Facility $ 10,216 $ 10,217 Unamortized discount and debt issuance costs, net of accumulated amortization (105) (116) Total long-term debt, net of discount and debt issuance costs 10,111 10,101 Current debt: $1.2 billion CCH working capital facility (“CCH Working Capital Facility”) and current portion of CCH Credit Facility 132 271 Unamortized discount and debt issuance costs, net of accumulated amortization (1) (2) Total current debt, net of discount and debt issuance costs 131 269 Total debt, net of discount and debt issuance costs $ 10,242 $ 10,370 |
Schedule of Line of Credit Facilities | Below is a summary of our credit facilities outstanding as of June 30, 2021 (in millions): CCH Credit Facility CCH Working Capital Facility Original facility size $ 8,404 $ 350 Incremental commitments 1,566 850 Less: Outstanding balance 2,627 — Commitments terminated 7,343 — Letters of credit issued — 293 Available commitment $ — $ 907 Priority ranking Senior secured Senior secured Interest rate on available balance LIBOR plus 1.75% or base rate plus 0.75% LIBOR plus 1.25% - 1.75% or base rate plus 0.25% - 0.75% Weighted average interest rate of outstanding balance 1.85% n/a Maturity date June 30, 2024 June 29, 2023 |
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, 2021 2020 2021 2020 Total interest cost $ 118 $ 119 $ 237 $ 248 Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction — (29) (26) (59) Total interest expense, net of capitalized interest $ 118 $ 90 $ 211 $ 189 |
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, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Senior notes — Level 2 (1) $ 5,750 $ 6,544 $ 5,750 $ 6,669 Senior notes — Level 3 (2) 1,971 2,342 1,971 2,387 Credit facilities — Level 3 (3) 2,627 2,627 2,767 2,767 (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. (3) The Level 3 estimated fair value approximates the principal amount 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 _2
Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a disaggregation of revenue earned from contracts with customers during the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 LNG revenues (1) $ 827 $ 620 $ 1,441 $ 963 LNG revenues—affiliate 331 44 599 234 Total revenues from customers 1,158 664 2,040 1,197 Net derivative losses (2) (1) (10) — (10) Total revenues $ 1,157 $ 654 $ 2,040 $ 1,187 (1) LNG revenues include revenues for LNG cargoes in which our customers exercised their contractual right to not take delivery but remained obligated to pay fixed fees irrespective of such election. During the three and six months ended June 30, 2020, we recognized $299 million and $336 million, respectively, in LNG revenues associated with LNG cargoes for which customers notified us that they would not take delivery, of which $200 million would have been recognized subsequent to June 30, 2020 had the cargoes been lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 and six months ended June 30, 2021 excluded $37 million and $38 million, respectively, that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers. We did not have revenues associated with LNG cargoes for which customers notified us that they would not take delivery during the three and six months ended June 30, 2021. Revenue is generally recognized upon receipt of irrevocable notice that a customer will not take delivery because our customers have no contractual right to take delivery of such LNG cargo in future periods and our performance obligations with respect to such LNG cargo have been satisfied. (2) See Note 6—Derivative Instruments |
Contract Assets | The following table shows our contract assets, net of current expected credit losses, which are classified as other current assets and other non-current assets, net on our Consolidated Balance Sheets (in millions): June 30, December 31, 2021 2020 Contract assets, net of current expected credit losses $ 72 $ 48 |
Transaction Price Allocated to Future Performance Obligations | The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Unsatisfied Weighted Average Recognition Timing (years) (1) Unsatisfied Weighted Average Recognition Timing (years) (1) LNG revenues $ 32.5 10 $ 32.3 10 LNG revenues—affiliate 1.0 12 1.0 12 Total revenues $ 33.5 $ 33.3 (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, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Below is a summary of our related party transactions as reported on our Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 LNG revenues—affiliate Cheniere Marketing Agreements $ 319 $ 38 $ 579 $ 228 Contracts for Sale and Purchase of Natural Gas and LNG 12 6 20 6 Total LNG revenues—affiliate 331 44 599 234 Cost of sales—affiliate Contracts for Sale and Purchase of Natural Gas and LNG 2 2 6 8 Cheniere Marketing Agreements — — 31 — Total cost of sales—affiliate 2 2 37 8 Cost of sales—related party Natural Gas Supply Agreement 36 25 71 48 Operating and maintenance expense—affiliate Services Agreements 28 25 52 45 Operating and maintenance expense—related party Natural Gas Transportation Agreements 3 2 5 2 General and administrative expense—affiliate Services Agreements 7 5 12 10 |
Customer Concentration (Tables)
Customer Concentration (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 accounts receivable, net of current expected credit losses and contract assets, net of current expected credit losses balances of 10% or greater of total accounts receivable, net of current expected credit losses and contract assets, net of current expected credit losses from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable, Net and Contract Assets, Net from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2021 2020 2021 2020 2021 2020 Customer A 23% 32% 23% 39% 21% 15% Customer B 17% 19% 19% 17% 19% * Customer C 14% 14% 16% * 10% 10% Customer D * 10% * 11% 11% 16% Customer E * 10% * 12% 29% 27% * Less than 10% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 Cash paid during the period for interest, net of amounts capitalized $ 199 $ 179 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)itemmilliontonnes / yrmiunittrains | Jun. 30, 2020USD ($) | |
Nature of Operations and Basis of Presentation [Line Items] | ||
Income Tax Expense (Benefit) | $ | $ 0 | $ 0 |
Corpus Christi Pipeline [Member] | ||
Nature of Operations and Basis of Presentation [Line Items] | ||
Length Of Natural Gas Pipeline | mi | 23 | |
Corpus Christi LNG Terminal [Member] | ||
Nature of Operations and Basis of Presentation [Line Items] | ||
Number of Liquefaction LNG Trains Operating | trains | 3 | |
Total Production Capability | milliontonnes / yr | 15 | |
Number of LNG Storage Tanks | unit | 3 | |
Number of Marine Berths | item | 2 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 122 | $ 70 |
CCL Project [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 122 | $ 70 |
Accounts and Other Receivable_3
Accounts and Other Receivables, Net of Current Expected Credit Losses (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Trade receivable | $ 141 | $ 182 |
Other accounts receivable | 20 | 16 |
Total accounts and other receivables, net of current expected credit losses | $ 161 | $ 198 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventory | $ 103 | $ 89 |
Materials [Member] | ||
Inventory [Line Items] | ||
Inventory | 81 | 69 |
LNG [Member] | ||
Inventory [Line Items] | ||
Inventory | 10 | 11 |
Natural gas [Member] | ||
Inventory [Line Items] | ||
Inventory | 11 | 9 |
Other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 1 | $ 0 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net of Accumulated Depreciation - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | $ 12,787 | $ 12,853 |
LNG terminal costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (763) | (568) |
Property, plant and equipment, net of accumulated depreciation | 12,780 | 12,844 |
LNG terminal and interconnecting pipeline facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,197 | 10,176 |
LNG site and related costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 294 | 276 |
LNG terminal construction-in-process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 52 | 2,960 |
Fixed assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22 | 22 |
Accumulated depreciation | (15) | (13) |
Property, plant and equipment, net of accumulated depreciation | $ 7 | $ 9 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Property, Plant and Equipment [Abstract] | |||||
Depreciation expense | $ 110 | $ 86 | $ 198 | $ 170 | |
Offsets to LNG terminal costs | [1] | $ 0 | $ 0 | $ 143 | $ 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 Liquefaction Project during the testing phase for its construction. |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - CCL [Member] - tbtu | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Natural Gas Supply Agreement [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 132 | 60 |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 10 years | |
Liquefaction Supply Derivatives [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3,191 | 3,152 |
Financial Liquefaction Supply Derivatives | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 3 years |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
CCH Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (91) | $ (140) |
CCH Interest Rate Derivatives [Member] | 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 | 0 | 0 |
CCH Interest Rate Derivatives [Member] | 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 | (91) | (140) |
CCH Interest Rate Derivatives [Member] | 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 | 0 | 0 |
Liquefaction Supply Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (245) | 11 |
Liquefaction Supply Derivatives [Member] | 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 | 4 |
Liquefaction Supply Derivatives [Member] | 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 | 11 | (5) |
Liquefaction Supply Derivatives [Member] | 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 | $ (260) | $ 12 |
Derivative Instruments - Fair_2
Derivative Instruments - Fair Value Inputs - Quantitative Information (Details) - Physical Liquefaction Supply Derivatives [Member] - Fair Value, Inputs, Level 3 [Member] | 6 Months Ended | |
Jun. 30, 2021USD ($) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net Fair Value Liability | $ (260,000,000) | |
Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | (0.573) | [1] |
Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | 0.385 | [1] |
Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | $ (0.019) | [1] |
Valuation Technique, Option Pricing Model [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 141.00% | [1],[2] |
Valuation Technique, Option Pricing Model [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 297.00% | [1],[2] |
Valuation Technique, Option Pricing Model [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 189.00% | [1],[2] |
[1] | Unobservable inputs were weighted by the relative fair value of the instruments. | |
[2] | Spread contemplates U.S. dollar-denominated pricing. |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Level 3 Activity (Details) - Physical Liquefaction Supply Derivatives [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Fair Value, Assets (Liabilities) Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | $ (14,000) | $ 202,000 | $ 12,000 | $ 35,000 | |
Realized and mark-to-market gains (losses): | |||||
Included in cost of sales | (255,000) | (31,000) | (314,000) | 134,000 | |
Purchases and settlements: | |||||
Purchases | 8,000 | (3,000) | 10,000 | (3,000) | |
Settlements | 1,000 | 2,000 | 32,000 | 5,000 | |
Transfers into Level 3, net | [1] | 0 | 3,000 | 0 | 2,000 |
Balance, end of period | (260,000) | 173,000 | (260,000) | 173,000 | |
Change in unrealized gains (losses) relating to instruments still held at end of period | $ (255,000) | $ (31,000) | $ (314,000) | $ 134,000 | |
[1] | Transferred into Level 3 as a result of unobservable market, or out of Level 3 as a result of observable market for the underlying natural gas purchase agreements. |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - CCH Interest Rate Derivatives [Member] - USD ($) $ in Billions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 4.6 | $ 4.6 |
Maturity Date | May 31, 2022 | |
Weighted Average Fixed Interest Rate Paid | 2.30% |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
CCH Interest Rate Derivatives [Member] | Interest rate derivative loss, net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | $ (2) | $ (15) | $ (1) | $ (138) | |
CCH Interest Rate Forward Start Derivatives [Member] | Interest rate derivative loss, net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | 0 | (10) | 0 | (95) | |
Liquefaction Supply Derivatives [Member] | LNG Revenues [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | (1) | (10) | 0 | (10) |
Liquefaction Supply Derivatives [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | (237) | (18) | (248) | 153 |
Liquefaction Supply Derivatives [Member] | Cost of sales—related party [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | $ 6 | $ 1 | $ 7 | $ 2 |
[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, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | $ 26 | $ 10 | |
Current derivative assets—related party | 4 | 3 | |
Derivative assets | 35 | 114 | |
Derivative assets—related party | 7 | 1 | |
Total derivative assets | 72 | 128 | |
Current derivative liabilities | (271) | (143) | |
Derivative liabilities | (137) | (114) | |
Total derivative liabilities | (408) | (257) | |
Derivative asset (liability), net | (336) | (129) | |
Current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | 26 | 10 | |
Current derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets—related party | 4 | 3 | |
Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 35 | 114 | |
Non-current derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets—related party | 7 | 1 | |
Current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative liabilities | (271) | (143) | |
Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (137) | (114) | |
CCH Interest Rate Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 0 | 0 | |
Total derivative liabilities | (91) | (140) | |
Derivative asset (liability), net | (91) | (140) | |
CCH Interest Rate Derivatives [Member] | Current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | 0 | 0 | |
CCH Interest Rate Derivatives [Member] | Current derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets—related party | 0 | 0 | |
CCH Interest Rate Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 0 | 0 | |
CCH Interest Rate Derivatives [Member] | Non-current derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets—related party | 0 | 0 | |
CCH Interest Rate Derivatives [Member] | Current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative liabilities | (91) | (100) | |
CCH Interest Rate Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | 0 | (40) | |
Liquefaction Supply Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [1] | 72 | 128 |
Total derivative liabilities | [1] | (317) | (117) |
Derivative asset (liability), net | [1] | (245) | 11 |
Derivative, collateral posted by us | 6 | 5 | |
Liquefaction Supply Derivatives [Member] | Current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | [1] | 26 | 10 |
Liquefaction Supply Derivatives [Member] | Current derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets—related party | [1] | 4 | 3 |
Liquefaction Supply Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [1] | 35 | 114 |
Liquefaction Supply Derivatives [Member] | Non-current derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets—related party | [1] | 7 | 1 |
Liquefaction Supply Derivatives [Member] | Current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative liabilities | [1] | (180) | (43) |
Liquefaction Supply Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [1] | $ (137) | $ (74) |
[1] | Does not include collateral posted with counterparties by us of $6 million and $5 million, which are included in other current assets in our Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020, respectively. |
Derivative Instruments - Deri_2
Derivative Instruments - Derivative Net Presentation on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
CCH Interest Rate Derivative Asset | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | $ 0 | $ 0 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
CCH Interest Rate Derivative Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (91) | (140) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (91) | (140) |
Liquefaction Supply Derivative Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | 80 | 132 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | (8) | (4) |
Derivative Assets (Liabilities), at Fair Value, Net | 72 | 128 |
Liquefaction Supply Derivative Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (368) | (136) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 51 | 19 |
Derivative Assets (Liabilities), at Fair Value, Net | $ (317) | $ (117) |
Other Non-Current Assets, Net_2
Other Non-Current Assets, Net (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Other Assets, Noncurrent [Abstract] | ||
Contract assets, net of current expected credit losses | $ 71 | $ 48 |
Advances and other asset conveyances to third parties to support LNG terminal | 20 | 22 |
Operating lease assets | 5 | 5 |
Information technology service prepayments | 3 | 3 |
Tax-related payments and receivables | 2 | 3 |
Other | 8 | 6 |
Total other non-current assets, net | $ 109 | $ 87 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Interest costs and related debt fees | $ 7 | $ 7 |
Accrued natural gas purchases | 229 | 186 |
Liquefaction Project costs | 52 | 76 |
Other | 30 | 49 |
Total accrued liabilities | $ 318 | $ 318 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 10,216 | $ 10,217 |
Long-term debt, net of discount and debt issuance costs | 10,111 | 10,101 |
Current Debt, Gross | 132 | 271 |
Current debt, net of discount and debt issuance costs | 131 | 269 |
Total Debt, Net | $ 10,242 | 10,370 |
Senior notes [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.52% | |
Senior notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (105) | (116) |
CCH Working Capital Facility [Member] | ||
Debt Instrument [Line Items] | ||
Current Debt, Gross | 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,200 | |
Short-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (1) | $ (2) |
Debt - Credit Facilities Table
Debt - Credit Facilities Table (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 10,216 | $ 10,217 |
Outstanding balance - current | 132 | $ 271 |
CCH Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Original facility size | 8,404 | |
Incremental commitments | 1,566 | |
Outstanding balance | 2,627 | |
Commitments terminated | 7,343 | |
Letters of credit issued | 0 | |
Available commitment | $ 0 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR or the base rate | |
Weighted average interest rate of outstanding balance | 1.85% | |
Maturity Date | Jun. 30, 2024 | |
CCH Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
CCH Credit Facility [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
CCH Working Capital Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Original facility size | $ 350 | |
Incremental commitments | 850 | |
Outstanding balance - current | 0 | |
Commitments terminated | 0 | |
Letters of credit issued | 293 | |
Available commitment | $ 907 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR or the base rate | |
Maturity Date | Jun. 29, 2023 | |
CCH 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 | 1.25% | |
CCH 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 | 1.75% | |
CCH Working Capital Facility [Member] | Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
CCH Working Capital Facility [Member] | Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Total interest cost | $ 118 | $ 119 | $ 237 | $ 248 |
Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction | 0 | (29) | (26) | (59) |
Total interest expense, net of capitalized interest | $ 118 | $ 90 | $ 211 | $ 189 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | $ 10,242 | $ 10,370 | |
Senior notes [Member] | Carrying Amount [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [1] | 5,750 | 5,750 |
Senior notes [Member] | Carrying Amount [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [2] | 1,971 | 1,971 |
Senior notes [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | [1] | 6,544 | 6,669 |
Senior notes [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | [2] | 2,342 | 2,387 |
Credit facilities [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [3] | 2,627 | 2,767 |
Credit facilities [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Lines of Credit, Fair Value Disclosure | [3] | $ 2,627 | $ 2,767 |
[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. | ||
[3] | The Level 3 estimated fair value approximates the principal amount 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 _3
Revenues from Contracts with Customers - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021Rate | Jun. 30, 2020Rate | Jun. 30, 2021Rate | Jun. 30, 2020Rate | |
LNG [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Variable Consideration Received From Customers, Percentage | 49.00% | 18.00% | 48.00% | 24.00% |
LNG—affiliate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Variable Consideration Received From Customers, Percentage | 0.00% | 0.00% | 0.00% | 0.00% |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 1,158 | $ 664 | $ 2,040 | $ 1,197 | |
Net derivative losses | [1] | (1) | (10) | 0 | (10) |
Revenues | 1,157 | 654 | 2,040 | 1,187 | |
LNG [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | [2] | 827 | 620 | 1,441 | 963 |
Revenues | 826 | 610 | 1,441 | 953 | |
Suspension Fees and LNG Cover Damages Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 0 | 299 | 0 | 336 | |
Suspension Fees and LNG Cover Damages Revenue [Member] | Subsequent Period | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 200 | 200 | |||
Suspension Fees and LNG Cover Damages Revenue [Member] | Current Period | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 37 | 38 | |||
LNG—affiliate [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 331 | $ 44 | $ 599 | $ 234 | |
[1] | See Note 6—Derivative Instruments | ||||
[2] | LNG revenues include revenues for LNG cargoes in which our customers exercised their contractual right to not take delivery but remained obligated to pay fixed fees irrespective of such election. During the three and six months ended June 30, 2020, we recognized $299 million and $336 million, respectively, in LNG revenues associated with LNG cargoes for which customers notified us that they would not take delivery, of which $200 million would have been recognized subsequent to June 30, 2020 had the cargoes been lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 and six months ended June 30, 2021 excluded $37 million and $38 million, respectively, that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers. We did not have revenues associated with LNG cargoes for which customers notified us that they would not take delivery during the three and six months ended June 30, 2021. Revenue is generally recognized upon receipt of irrevocable notice that a customer will not take delivery because our customers have no contractual right to take delivery of such LNG cargo in future periods and our performance obligations with respect to such LNG cargo have been satisfied. |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Contract Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net of current expected credit losses | $ 72 | $ 48 |
Revenues from Contracts with _6
Revenues from Contracts with Customers - Schedule of Transaction Price Allocated to Future Performance Obligations (Details) - USD ($) $ in Billions | Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 33.3 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 33.5 | ||
LNG [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 32.3 | ||
Weighted Average Recognition Timing | [1] | 10 years | |
LNG [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 32.5 | ||
Weighted Average Recognition Timing | [1] | 10 years | |
LNG—affiliate [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 1 | ||
Weighted Average Recognition Timing | [1] | 12 years | |
LNG—affiliate [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 1 | ||
Weighted Average Recognition Timing | [1] | 12 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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
LNG revenues—affiliate | $ 331 | $ 44 | $ 599 | $ 234 |
Cost of sales—affiliate | 2 | 2 | 37 | 8 |
Cost of sales—related party | 36 | 25 | 71 | 48 |
Operating and maintenance expense—affiliate | 28 | 25 | 52 | 45 |
Operating and maintenance expense—related party | 3 | 2 | 5 | 2 |
General and administrative expense—affiliate | 7 | 5 | 12 | 10 |
Cheniere Marketing Agreements [Member] | ||||
Related Party Transaction [Line Items] | ||||
LNG revenues—affiliate | 319 | 38 | 579 | 228 |
Cost of sales—affiliate | 0 | 0 | 31 | 0 |
Contracts for Sale and Purchase of Natural Gas And LNG [Member] | ||||
Related Party Transaction [Line Items] | ||||
LNG revenues—affiliate | 12 | 6 | 20 | 6 |
Cost of sales—affiliate | 2 | 2 | 6 | 8 |
Natural Gas Supply Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of sales—related party | 36 | 25 | 71 | 48 |
Service Agreements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating and maintenance expense—affiliate | 28 | 25 | 52 | 45 |
General and administrative expense—affiliate | 7 | 5 | 12 | 10 |
Natural Gas Transportation Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating and maintenance expense—related party | $ 3 | $ 2 | $ 5 | $ 2 |
Related Party Transactions - LN
Related Party Transactions - LNG Sale and Purchase Agreements (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)tbtu | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | ||
Accounts receivable—affiliate | $ | $ 90 | $ 42 |
CCL [Member] | Affiliated Entity [Member] | Facility Swap Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115.00% | |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable—affiliate | $ | $ 87 | $ 39 |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing Base SPA [Member] | ||
Related Party Transaction [Line Items] | ||
SPA, Term of Agreement | 20 years | |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing Base SPA [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Volumes | tbtu | 150 | |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing SPA [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Volumes | tbtu | 15 | |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing EOG SPA [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Volumes | tbtu | 44 | |
CCL [Member] | Cheniere Marketing [Member] | Train 3 2020 Letter Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Shipping Fee | $ | $ 1 |
Related Party Transactions - Se
Related Party Transactions - Service Agreements (Details) - CCL [Member] | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Shared Services [Member] | Gas and Power Supply Services Agreement [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Committed Monthly Fee | $ 125,000 |
Shared Services [Member] | Management Services Agreement [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Committed Monthly Fee | $ 375,000 |
Monthly fee as a percentage of capital expenditures incurred in the previous month | 3.00% |
O&M Services [Member] | Operation and Maintenance Agreement [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Committed Monthly Fee | $ 125,000 |
Related Party Transactions - Na
Related Party Transactions - Natural Gas Supply Agreement (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Accrued liabilities—related party | $ 15 | $ 16 |
Current derivative assets—related party | 4 | 3 |
Derivative assets—related party | 7 | 1 |
CCL [Member] | Natural Gas Supply Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Accrued liabilities—related party | 13 | 13 |
Current derivative assets—related party | 4 | 3 |
Derivative assets—related party | $ 7 | $ 1 |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) | 6 Months Ended | |
Jun. 30, 2021USD ($)yd3unit | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 21,000,000 | $ 32,000,000 |
Accrued liabilities—related party | $ 15,000,000 | 16,000,000 |
CCL [Member] | Natural Gas Transportation Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Agreement Term | 10 years | |
Accrued liabilities—related party | $ 1,000,000 | $ 1,000,000 |
CCL [Member] | Cheniere Land Holdings [Member] | Lease Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Annual lease payment | $ 600,000 | |
CCL [Member] | Cheniere Land Holdings [Member] | Lease Agreements [Member] | Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Lease Term | 3 years | |
CCL [Member] | Cheniere Land Holdings [Member] | Lease Agreements [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Lease Term | 7 years | |
CCL [Member] | Cheniere Land Holdings [Member] | Easement Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Annual lease payment | $ 100,000 | |
CCL [Member] | Cheniere Land Holdings [Member] | Easement Agreements [Member] | Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Agreement Term | 3 years | |
CCL [Member] | Cheniere Land Holdings [Member] | Easement Agreements [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Agreement Term | 5 years | |
CCL [Member] | Cheniere Land Holdings [Member] | Dredge Material Disposal Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Dredge Material Deposits, Price Per Cubic Yard Of Deposit | $ 0.50 | |
Dredge Material Deposits, Deposit Threshold | yd3 | 5,000,000 | |
Dredge Material Deposits, Price Per Cubic Yard Of Deposit After Exceeding Threshold | $ 4.62 | |
CCL [Member] | Cheniere [Member] | Tax Sharing Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Income Taxes Paid, Net | $ 0 | |
CCP [Member] | Cheniere Corpus Christi Liquefaction Stage III, LLC [Member] | Natural Gas Transportation Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Agreement Term | 20 years | |
Related Party Agreement, Number Of Available Extensions | unit | 2 | |
Related Party Agreement, Term Of Available Extension | 5 years | |
CCP [Member] | Cheniere [Member] | Tax Sharing Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Income Taxes Paid, Net | $ 0 |
Related Party Transactions - Eq
Related Party Transactions - Equity Contribution Agreements (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Related Party Transaction [Line Items] | ||
Capital contributions | $ 0 | $ 145,000,000 |
Cheniere Revolving Credit Facility [Member] | ||
Related Party Transaction [Line Items] | ||
Letters of credit issued | 0 | |
CCH Credit Facility [Member] | ||
Related Party Transaction [Line Items] | ||
Letters of credit issued | 0 | |
Cheniere [Member] | Equity Contributions Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Capital contributions | 703,000,000 | |
Cheniere [Member] | Equity Contributions Agreement [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Capital contributions | 1,100,000,000 | |
Cheniere [Member] | Previous Equity Contributions Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Capital contributions | 2,000,000,000 | |
Cheniere [Member] | CCH Credit Facility [Member] | Equity Contributions Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Agreement, Additional Contribution Requirement, Debt Instrument, Commitments Reduction Threshold | $ 0 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Customer A [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 23.00% | 32.00% | 23.00% | 39.00% | |
Customer A [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 21.00% | 15.00% | |||
Customer B [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 17.00% | 19.00% | 19.00% | 17.00% | |
Customer B [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 19.00% | ||||
Customer C [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 14.00% | 14.00% | 16.00% | ||
Customer C [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 10.00% | |||
Customer D [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 11.00% | |||
Customer D [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 11.00% | 16.00% | |||
Customer E [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 12.00% | |||
Customer E [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 29.00% | 27.00% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid during the period for interest, net of amounts capitalized | $ 199 | $ 179 |
Balance in property, plant and equipment, net of accumulated depreciation funded with accounts payable and accrued liabilities (including affiliate) | $ 28 | $ 29 |