Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2022 |
Document Transition Report | false |
Entity File Number | 333-215435 |
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 | 2022 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Revenues | $ 2,370 | $ 1,157 | $ 4,365 | $ 2,040 |
Revenues from contracts with customers | 2,358 | 1,158 | 4,358 | 2,040 |
Operating costs and expenses | ||||
Cost of sales (excluding items shown separately below) | 2,442 | 799 | 4,783 | 985 |
Cost of sales—affiliate | 36 | 2 | 48 | 37 |
Cost of sales—related party | 0 | 36 | 0 | 71 |
Operating and maintenance expense | 118 | 120 | 231 | 203 |
Operating and maintenance expense—affiliate | 28 | 28 | 58 | 52 |
Operating and maintenance expense—related party | 3 | 3 | 5 | 5 |
Development expense | 1 | 0 | 1 | 0 |
General and administrative expense | 2 | 2 | 4 | 3 |
General and administrative expense—affiliate | 8 | 7 | 16 | 12 |
Depreciation and amortization expense | 112 | 110 | 222 | 199 |
Other | 3 | 1 | 3 | 1 |
Total operating costs and expenses | 2,753 | 1,108 | 5,371 | 1,568 |
Income (loss) from operations | (383) | 49 | (1,006) | 472 |
Other income (expense) | ||||
Interest expense, net of capitalized interest | (116) | (118) | (234) | (211) |
Loss on modification or extinguishment of debt | (28) | 0 | (30) | 0 |
Interest rate derivative gain (loss), net | (1) | (2) | 2 | (1) |
Other income, net | 1 | 0 | 1 | 0 |
Total other expense | (144) | (120) | (261) | (212) |
Net income (loss) | (527) | (71) | (1,267) | 260 |
LNG [Member] | ||||
Revenues | ||||
Revenues | 1,607 | 826 | 2,931 | 1,441 |
Revenues from contracts with customers | 1,595 | 827 | 2,924 | 1,441 |
LNG—affiliate [Member] | ||||
Revenues | ||||
Revenues from contracts with customers | $ 763 | $ 331 | $ 1,434 | $ 599 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Restricted cash and cash equivalents | $ 51 | $ 44 |
Trade and other receivables, net of current expected credit losses | 441 | 280 |
Accounts receivable—affiliate | 307 | 315 |
Advances to affiliate | 76 | 128 |
Inventory | 152 | 156 |
Current derivative assets | 30 | 17 |
Margin deposits | 25 | 13 |
Other current assets | 30 | 15 |
Total current assets | 1,112 | 968 |
Property, plant and equipment, net of accumulated depreciation | 13,117 | 12,607 |
Debt issuance and deferred financing costs, net of accumulated amortization | 43 | 7 |
Derivative assets | 108 | 37 |
Other non-current assets, net | 351 | 145 |
Total assets | 14,731 | 13,764 |
Current liabilities | ||
Accounts payable | 87 | 119 |
Accrued liabilities | 796 | 631 |
Accrued liabilities—related party | 1 | 1 |
Current debt, net of discount and debt issuance costs | 0 | 366 |
Due to affiliates | 28 | 35 |
Current derivative liabilities | 1,162 | 668 |
Other current liabilities | 1 | 1 |
Other current liabilities—affiliate | 1 | 0 |
Total current liabilities | 2,076 | 1,821 |
Long-term debt, net of discount and debt issuance costs | 9,168 | 9,986 |
Derivative liabilities | 3,955 | 638 |
Other non-current liabilities | 58 | 38 |
Other non-current liabilities—affiliate | 3 | 0 |
Member’s equity (deficit) | (529) | 1,281 |
Total liabilities and member’s equity (deficit) | $ 14,731 | $ 13,764 |
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, 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 |
Member's equity, beginning of period at Dec. 31, 2021 | 1,281 | 1,281 |
Contributions | 138 | 138 |
Net income (loss) | (740) | (740) |
Member's equity, end of period at Mar. 31, 2022 | 679 | 679 |
Member's equity, beginning of period at Dec. 31, 2021 | 1,281 | 1,281 |
Contribution of CCL Stage III entity | 1,500 | |
Net income (loss) | (1,267) | |
Member's equity, end of period at Jun. 30, 2022 | (529) | (529) |
Member's equity, beginning of period at Mar. 31, 2022 | 679 | 679 |
Contributions | 801 | 801 |
Contribution of CCL Stage III entity | (1,482) | (1,482) |
Net income (loss) | (527) | (527) |
Member's equity, end of period at Jun. 30, 2022 | $ (529) | $ (529) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ (1,267) | $ 260 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expense | 222 | 199 |
Amortization of discount and debt issuance costs | 11 | 12 |
Loss on modification or extinguishment of debt | 30 | 0 |
Total losses on derivatives instruments, net | 1,871 | 249 |
Total gains on derivatives, net—related party | 0 | (7) |
Net cash used for settlement of derivative instruments | (82) | (35) |
Other | 4 | 2 |
Changes in operating assets and liabilities: | ||
Trade and other receivables, net of current expected credit losses | (161) | 34 |
Accounts receivable—affiliate | 9 | (48) |
Advances to affiliate | (6) | 56 |
Inventory | 2 | (9) |
Margin deposits | (12) | (1) |
Accounts payable and accrued liabilities | 145 | 65 |
Accrued liabilities—related party | 0 | 1 |
Due to affiliates | (9) | (4) |
Other, net | (15) | (41) |
Net cash provided by operating activities | 742 | 733 |
Cash flows from investing activities | ||
Property, plant and equipment | (406) | (203) |
Other | 0 | (1) |
Net cash used in investing activities | (406) | (204) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 440 | 0 |
Repayments of debt | (1,640) | (140) |
Debt issuance and deferred financing costs | (18) | 0 |
Debt extinguishment costs | (43) | 0 |
Capital contributions | 932 | 0 |
Distributions | 0 | (337) |
Net cash used in financing activities | (329) | (477) |
Net increase in restricted cash and cash equivalents | 7 | 52 |
Restricted cash and cash equivalents—beginning of period | 44 | 70 |
Restricted cash and cash equivalents—end of period | $ 51 | $ 122 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION We operate a natural gas liquefaction and export facility located near Corpus Christi, Texas (the “Corpus Christi LNG Terminal”) through CCL, which has three operational Trains for a total production capacity of approximately 15 mtpa of LNG, three LNG storage tanks and two marine berths. Additionally, we are constructing an expansion of the Corpus Christi LNG Terminal (the “Corpus Christi Stage 3 Project”) for up to seven midscale Trains with an expected total production capacity of over 10 mtpa of LNG. CCL Stage III, CCL and CCP received approval from FERC in November 2019 to site, construct and operate the Corpus Christi Stage 3 Project. In March 2022, CCL Stage III issued limited notice to proceed to Bechtel Energy Inc. (“Bechtel”) to commence early engineering, procurement and site works. In June 2022, Cheniere’s board of directors made a positive FID with respect to the investment in the construction and operation of the Corpus Christi Stage 3 Project and issued a full notice to proceed with construction to Bechtel effective June 16, 2022. In connection with the positive FID, CCL Stage III, through which Cheniere was developing and constructing the Corpus Christi Stage 3 Project, was contributed to us from Cheniere (the “Contribution”) on June 15, 2022. Immediately following the Contribution, CCL Stage III was merged with and into CCL (the “Merger”), the surviving entity of the merger and our wholly owned subsidiary. Refer to Note 2— CCL S tage III Contribution and Merger for additional information on the Contribution and Merger of CCL Stage III. Through our subsidiary CCP, we also own a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG Terminal with several interstate and intrastate natural gas pipelines (the “Corpus Christi Pipeline” and together with the existing operational Trains, midscale trains, storage tanks and marine berths, the “Liquefaction Project”). We have increased available liquefaction capacity at our Liquefaction Project as a result of debottlenecking and other optimization projects. We hold a significant land position at the Corpus Christi LNG Terminal which provides opportunity for further liquefaction capacity expansion. The development of this site or other projects, including infrastructure projects in support of natural gas supply and LNG demand, will require, among other things, acceptable commercial and financing arrangements before we make a positive FID. Basis of Presentation The accompanying unaudited Consolidated Financial Statements of CCH have been prepared in accordance with GAAP for interim financial information and in accordance with Rule 10-01 of Regulation S-X. 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, 2021 . Results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2022. We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements. Recent Accounting Standards ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance primarily provides temporary optional expedients which simplify the accounting for contract modifications to existing contracts expected to arise from the market transition from LIBOR to alternative reference rates. The transition period under this standard is effective March 12, 2020 and will apply through December 31, 2022. We had interest rate swaps and various credit facilities indexed to LIBOR, as further described in Note 7—Derivative Instruments and Note 9 —Debt , respectively. In June 2022, we amended our credit facilities to bear interest at a variable rate per annum based on SOFR as a result of the expected LIBOR transition. Since adoption of the standard, we elected to apply the optional expedients as applicable to certain modified facilities, however the impact of applying the optional expedients was not material, and the transition to SOFR or other replacement rate indexes does not have a material impact on our cash flows. |
CCL Stage III Contribution and
CCL Stage III Contribution and Merger | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures | CCL STAGE III CONTRIBUTION AND MERGER As described in Note 1 —Nature of Operations and Basis of Pre sentation , the Contribution of the CCL Stage III legal entity to us from Cheniere occurred on the June 15, 2022, which was immediately followed by the Merger, in which CCL Stage III was merged with and into CCL, with CCL continuing as the surviving company. The Contribution was accounted for as a common control transaction as the assets and liabilities were transferred between entities under Cheniere’s control. As a result, the net liability transfer was recognized as a distribution in our Statement of Member’s Equity (Deficit) and at the historical basis of Cheniere on June 15, 2022 in our Consolidated Balance Sheets. The Contribution has been presented prospectively as we have concluded that the Contribution did not represent a change in our reporting entity, primarily as we concluded that CCL Stage III did not constitute a business under FASB topic Accounting Standards Codification 805, Business Combinations . The Merger had no impact on our Consolidated Financial Statements as it occurred between our consolidated subsidiaries. The net liabilities of CCL Stage III contributed to us and recognized on our Consolidated Balance Sheets on June 15, 2022 consisted of the following (in millions): June 15, 2022 ASSETS Property, plant and equipment, net of accumulated depreciation $ 441 Derivatives assets 112 Other non-current assets, net 19 Total assets $ 572 LIABILITIES AND MEMBER’S DEFICIT Current liabilities Accounts payable $ 3 Due to affiliates 1 Total current liabilities 4 Derivative liabilities 2,050 Total net liabilities contributed $ (1,482) Amended and Restated Debt Agreements In June 2022, in connection with the FID with respect to the Corpus Christi Stage 3 Project referenced above, CCH amended and restated its term loan credit facility (the “CCH Credit Facility”) and its working capital facility (“CCH Working Capital Facility”) to, among other things, (1) increase the commitments to approximately $4.0 billion and $1.5 billion for the CCH Credit Facility and the CCH Working Capital Facility, respectively, (2) extend the maturity of the CCH Credit Facility to the earlier of June 15, 2029 or two years after the substantial completion of the last Train of the Corpus Christi Stage 3 Project and of the CCH Working Capital Facility through June 15, 2027, (3) update the indexed interest rate to SOFR and (4) make certain other changes to the terms and conditions of the existing facility. See Note 9 —Debt for additional information on our credit facilities. |
Restricted Cash and Cash Equiva
Restricted Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2022 | |
Restricted Cash and Cash Equivalents [Abstract] | |
Restricted Cash and Cash Equivalents | RESTRICTED CASH AND CASH EQUIVALENTSRestricted cash and cash equivalents consist of funds that are contractually or legally restricted as to usage or withdrawal. As of June 30, 2022 and December 31, 2021, we had $51 million and $44 million of restricted cash and cash equivalents, respectively.Pursuant to the accounts agreement entered into with the collateral trustee for the benefit of our debt holders, we are required to deposit all cash received into reserve accounts controlled by the collateral trustee. The usage or withdrawal of such cash is restricted to the payment of liabilities related to the Liquefaction Project and other restricted payments. |
Trade and Other Receivables, Ne
Trade and Other Receivables, Net of Current Expected Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Trade and Other Receivables, Net of Current Expected Credit Losses | TRADE AND OTHER RECEIVABLES, NET OF CURRENT EXPECTED CREDIT LOSSES Trade and other receivables, net of current expected credit losses consisted of the following (in millions): June 30, December 31, 2022 2021 Trade receivables $ 394 $ 256 Other receivables 47 24 Total trade and other receivables, net of current expected credit losses $ 441 $ 280 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following (in millions): June 30, December 31, 2022 2021 Materials $ 88 $ 88 LNG 40 45 Natural gas 24 21 Other — 2 Total inventory $ 152 $ 156 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net of Accumulated Depreciation | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net of Accumulated Depreciation | PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): June 30, December 31, 2022 2021 LNG terminal Terminal and interconnecting pipeline facilities $ 13,281 $ 13,222 Site and related costs 302 294 Construction-in-process 729 66 Accumulated depreciation (1,200) (981) Total LNG terminal, net of accumulated depreciation 13,112 12,601 Fixed assets Fixed assets 23 23 Accumulated depreciation (18) (17) Total fixed assets, net of accumulated depreciation 5 6 Property, plant and equipment, net of accumulated depreciation $ 13,117 $ 12,607 The following table shows depreciation expense and offsets to LNG terminal costs (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Depreciation expense $ 111 $ 110 $ 221 $ 198 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 respective Trains of the Liquefaction Project during the testing phase for its construction. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS We have entered into the following derivative instruments: • interest rate swaps (“Interest Rate Derivatives”) to hedge the exposure to volatility in a portion of the floating-rate interest payments on our CCH Credit Facility, with the last of our Interest Rate Derivatives expiring in May 2022; and • commodity derivatives consisting of natural gas and power supply contracts, including those under our IPM agreements, for the development, 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 such changes are capitalized. The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis (in millions): Fair Value Measurements as of June 30, 2022 December 31, 2021 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Interest Rate Derivatives liability $ — $ — $ — $ — $ — $ (40) $ — $ (40) Liquefaction Supply Derivatives asset (liability) (6) 33 (5,006) (4,979) 5 4 (1,221) (1,212) 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 or option-based approach incorporating present value techniques, as needed, using observable commodity price curves, when available, and other relevant data. The fair value of our Physical Liquefaction Supply Derivatives is predominantly driven by observable and unobservable market commodity prices and, as applicable to our natural gas supply contracts, our assessment of the associated events deriving fair value, including, but not limited to, evaluation of whether the respective market exists from the perspective of market participants as infrastructure is developed. We include a portion of our Physical Liquefaction Supply Derivatives as Level 3 within the valuation hierarchy as the fair value is developed through the use of internal models which incorporate significant unobservable inputs. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks, such as future prices of energy units for unobservable periods, liquidity and volatility. The Level 3 fair value measurements of natural gas positions within our Physical Liquefaction Supply Derivatives could be materially impacted by a significant change in certain natural gas and international LNG prices. The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of June 30, 2022 and December 31, 2021: Net Fair Value Liability Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $(5,006) Market approach incorporating present value techniques Henry Hub basis spread $(1.802) - $0.695 / $(0.100) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 94% - 671% / 184% (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 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 (1) 2022 2021 (1) Balance, beginning of period $ (2,235) $ (14) $ (1,221) $ 12 Realized and mark-to-market losses: Included in cost of sales (634) (255) (1,678) (314) Purchases and settlements: Purchases (2,407) 8 (2,414) 10 Settlements 270 1 307 32 Balance, end of period $ (5,006) $ (260) $ (5,006) $ (260) Change in unrealized losses relating to instruments still held at end of period $ (634) $ (255) $ (1,678) $ (314) (1) Includes amounts recorded related to natural gas supply contracts that CCL had with a related party. The agreement ceased to be considered a related party agreement during 2021, as discussed in Note 11—Related Party Transactions . Except for Interest Rate Derivatives, all counterparty derivative contracts provide for the unconditional right of set-off in the event of default. We have elected to report derivative assets and liabilities arising from those derivative contracts with the same counterparty and the unconditional contractual right of set-off on a net basis. The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments, in instances when our derivative instruments are in an asset position. Additionally, counterparties are at risk that we will be unable to meet our commitments in instances where our derivative instruments are in a liability position. We incorporate both our own nonperformance risk and the respective counterparty’s nonperformance risk in fair value measurements depending on the position of the derivative. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of any applicable credit enhancements, such as collateral postings, set-off rights and guarantees. Interest Rate Derivatives We previously entered into the following 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, which expired in May 2022: Notional Amounts June 30, 2022 December 31, 2021 Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received Interest Rate Derivatives $— $4.5 billion 2.30% One-month LIBOR The following table shows the effect and location of our Interest Rate Derivatives on our Consolidated Statements of Operations (in millions): Gain (Loss) Recognized in Consolidated Statements of Operations Consolidated Statements of Operations Location Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest Rate Derivatives Interest rate derivative gain (loss), net $ (1) $ (2) $ 2 $ (1) Liquefaction Supply Derivatives CCL holds Liquefaction Supply Derivatives which are primarily indexed to the natural gas market and international LNG indices. The remaining terms of the Physical Liquefaction Supply Derivatives range up to 15 years, some of which commence upon the satisfaction of certain conditions precedent. The terms of the Financial Liquefaction Supply Derivatives range up to approximately three years. The forward notional amount for our Liquefaction Supply Derivatives was approximately 8,256 TBtu and 2,915 TBtu as of June 30, 2022 and December 31, 2021, respectively. The following table shows the effect and location of our Liquefaction Supply Derivatives recorded on our Consolidated Statements of Operations (in millions): Gain (Loss) Recognized in Consolidated Statements of Operations Consolidated Statements of Operations Location (1) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues $ 12 $ (1) $ 7 $ — Cost of sales (830) (237) (1,880) (248) Cost of sales—related party (2) — 6 — 7 (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. (2) Includes amounts recorded related to natural gas supply contracts that we had with a related party. This agreement ceased to be considered a related party agreement as of November 1, 2021 as discussed in Note 1 1 —Related Party Transactions . 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, 2022 Interest Rate Derivatives Liquefaction Supply Derivatives (1) Total Consolidated Balance Sheets Location Current derivative assets $ — $ 30 $ 30 Derivative assets — 108 108 Total derivative assets — 138 138 Current derivative liabilities — (1,162) (1,162) Derivative liabilities — (3,955) (3,955) Total derivative liabilities — (5,117) (5,117) Derivative liability, net $ — $ (4,979) $ (4,979) December 31, 2021 Interest Rate Derivatives Liquefaction Supply Derivatives (1) Total Consolidated Balance Sheets Location Current derivative assets $ — $ 17 $ 17 Derivative assets — 37 37 Total derivative assets — 54 54 Current derivative liabilities (40) (628) (668) Derivative liabilities — (638) (638) Total derivative liabilities (40) (1,266) (1,306) Derivative liability, net $ (40) $ (1,212) $ (1,252) (1) Does not include collateral posted with counterparties by us of $25 million and $13 million as of June 30, 2022 and December 31, 2021, respectively, which are included in other current assets in our Consolidated Balance Sheets. Consolidated Balance Sheets Presentation The following table shows the fair value of our derivatives outstanding on a gross and net basis (in millions) for our derivative instruments that are presented on a net basis on our Consolidated Balance Sheets: Liquefaction Supply Derivatives As of June 30, 2022 Gross assets $ 151 Offsetting amounts (13) Net assets $ 138 Gross liabilities $ (5,485) Offsetting amounts 368 Net liabilities $ (5,117) As of December 31, 2021 Gross assets $ 76 Offsetting amounts (22) Net assets $ 54 Gross liabilities $ (1,295) Offsetting amounts 29 Net liabilities $ (1,266) |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of the following (in millions): June 30, December 31, 2022 2021 Natural gas purchases $ 716 $ 531 Interest costs and related debt fees 8 7 Liquefaction Project costs 41 43 Other accrued liabilities 31 50 Total accrued liabilities $ 796 $ 631 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consisted of the following (in millions): June 30, December 31, 2022 2021 Senior Secured Notes: 7.000% due 2024 $ 1,250 $ 1,250 5.875% due 2025 1,500 1,500 5.125% due 2027 1,500 1,500 3.700% due 2029 1,500 1,500 3.72% weighted average rate due 2039 2,721 2,721 Total Senior Secured Notes 8,471 8,471 CCH Credit Facility 779 1,728 CCH Working Capital Facility) (1) — 250 Total debt 9,250 10,449 Current portion of long-term debt — (117) Short-term debt — (250) Unamortized discount and debt issuance costs, net (82) (96) Total long-term debt, net of discount and debt issuance costs $ 9,168 $ 9,986 (1) The CCH Working Capital Facility is classified as short-term debt. Credit Facilities Below is a summary of our credit facilities outstanding as of June 30, 2022 (in millions): CCH Credit Facility (1) CCH Working Capital Facility (1) Total facility size $ 4,039 $ 1,500 Less: Outstanding balance 779 — Letters of credit issued — 276 Available commitment $ 3,260 $ 1,224 Priority ranking Senior secured Senior secured Interest rate on available balance SOFR plus credit spread adjustment of 0.1% , plus margin of 1.5% or base rate plus 0.5% SOFR plus credit spread adjustment of 0.1%, plus margin of 1.0% - 1.5% or base rate plus applicable margin Weighted average interest rate of outstanding balance 3.13% n/a Commitment fees on undrawn balance 0.53% 0.18% Maturity date (2) June 15, 2027 (1) In June 2022, we amended and restated the CCH Credit Facility and CCH Working Capital Facility resulting in $20 million of debt extinguishment and modification costs to, among other things, (1) provide incremental commitments of $3.7 billion and $300 million for the CCH Credit Facility and the CCH Working Capital Facility, respectively, in connection with the FID with respect to the Corpus Christi Stage 3 Project, (2) extend the maturity, (3) update the indexed interest rate to SOFR and (4) make certain other changes to the terms and conditions of each existing facility. (2) The CCH Credit Facility matures the earlier of June 15, 2029 or two years after the substantial completion of the last Train of the Corpus Christi Stage 3 Project. 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, 2022, we were in compliance with all covenants related to our debt agreements. Interest Expense Total interest expense, net of capitalized interest consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Total interest cost $ 118 $ 118 $ 237 $ 237 Capitalized interest, including amounts capitalized as an allowance for funds used during construction (2) — (3) (26) Total interest expense, net of capitalized interest $ 116 $ 118 $ 234 $ 211 Fair Value Disclosures The following table shows the carrying amount and estimated fair value of our debt (in millions): June 30, 2022 December 31, 2021 Carrying Estimated Carrying Estimated Senior notes — Level 2 (1) $ 6,500 $ 6,291 $ 6,500 $ 7,095 Senior notes — Level 3 (2) 1,971 1,865 1,971 2,227 (1) The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments. (2) The Level 3 estimated fair value was calculated based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. The estimated fair value of our credit facilities approximates the principal amount outstanding because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | REVENUES FROM CONTRACTS WITH CUSTOMERS The following table represents a disaggregation of revenue earned from contracts with customers (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues $ 1,595 $ 827 $ 2,924 $ 1,441 LNG revenues—affiliate 763 331 1,434 599 Total revenues from customers 2,358 1,158 4,358 2,040 Net derivative gain (loss) (1) 12 (1) 7 — Total revenues $ 2,370 $ 1,157 $ 4,365 $ 2,040 (1) See Note 7 —Derivative Instruments for additional information about our derivatives. Contract Assets and Liabilities The following table shows our contract assets, net of current expected credit losses, which are classified as other current assets and other non-current assets, net on our Consolidated Balance Sheets (in millions): June 30, December 31, 2022 2021 Contract assets, net of current expected credit losses $ 125 $ 104 The following table reflects the changes in our contract liabilities, which we classify as other non-current liabilities on our Consolidated Balance Sheets (in millions): Six Months Ended June 30, 2022 Deferred revenue, beginning of period $ 35 Cash received but not yet recognized in revenue 56 Revenue recognized from prior period deferral (35) Deferred revenue, end of period $ 56 Transaction Price Allocated to Future Performance Obligations Because many of our sales contracts have long-term durations, we are contractually entitled to significant future consideration which we have not yet recognized as revenue. The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied: June 30, 2022 December 31, 2021 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) LNG revenues $ 49.2 11 $ 31.7 9 LNG revenues—affiliate 1.3 8 1.1 10 Total revenues $ 50.5 $ 32.8 (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 72% and 49% of our LNG revenues from contracts included in the table above during the three months ended June 30, 2022 and 2021, respectively, and approximately 68% and 48% of our LNG revenues from contracts included in the table above during the six months ended June 30, 2022 and 2021, respectively, were related to variable consideration received from customers. 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, 2022 and 2021. We may enter into contracts to sell LNG that are conditioned upon one or both of the parties achieving certain milestones such as reaching FID on a certain liquefaction Train, obtaining financing or achieving substantial completion of a Train and any related facilities. These contracts are considered completed contracts for revenue recognition purposes and are included in the transaction price above when the conditions are considered probable of being met. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Below is a summary of our related party transactions as reported on our Consolidated Statements of Operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues—affiliate Cheniere Marketing Agreements $ 707 $ 319 $ 1,372 $ 579 Contracts for Sale and Purchase of Natural Gas and LNG 56 12 62 20 Total LNG revenues—affiliate 763 331 1,434 599 Cost of sales—affiliate Contracts for Sale and Purchase of Natural Gas and LNG 36 2 48 6 Cheniere Marketing Agreements — — — 31 Total cost of sales—affiliate 36 2 48 37 Cost of sales—related party Natural Gas Supply Agreement (1) — 36 — 71 Operating and maintenance expense—affiliate Services Agreements 28 28 58 52 Operating and maintenance expense—related party Natural Gas Transportation Agreements 3 3 5 5 General and administrative expense—affiliate Services Agreements 8 7 16 12 (1) Includes amounts recorded related to natural gas supply contracts that we had with a related party. This agreement ceased to be considered a related party agreement during 2021, as discussed below. We had $28 million and $35 million due to affiliates as of June 30, 2022 and December 31, 2021, respectively, under agreements with affiliates, as described below. Cheniere Marketing Agreements Cheniere Marketing SPA CCL has an amended and restated fixed price SPA with Cheniere Marketing International LLP (“Cheniere Marketing”), a wholly owned subsidiary of Cheniere, (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 Project 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, 2022 and December 31, 2021, CCL had $294 million and $314 million of accounts receivable—affiliate, respectively, under these agreements with Cheniere Marketing. In association with an IPM agreement between CCL and ARC Resources U.S. Corp, CCL entered into an SPA in June 2022 with Cheniere Marketing to sell Cheniere Marketing approximately 44 TBtu per annum of LNG at a price linked to the Platts Japan Korea Marker (“JKM”), for a term of 15 years commencing with commercial operations of Train 7 of the Corpus Christi Stage 3 Project. Cheniere Marketing Letter Agreement CCL has a letter agreement with Cheniere Marketing for the sale of up to 48 cargoes scheduled to be delivered between 2023 and 2025 at a price equal to 115% of Henry Hub plus $1.97 per MMBtu. 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 Project, no monthly fee payment is required except for reimbursement of operating expenses. After substantial completion of each Train of the Liquefaction Project, CCL will pay, in addition to the reimbursement of related expenses, a fixed monthly fee of $30,000 (indexed for inflation) per mtpa for services performed 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 Project. 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 Project. Prior to the substantial completion of each Train of the Liquefaction Project, no monthly fee payment is required except for reimbursement of operating expenses. After substantial completion of each Train of the Liquefaction Project, CCL will pay, in addition to the reimbursement of related expenses, a fixed monthly fee of $53,000 (indexed for inflation) per mtpa for services performed 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 an MSA with Shared Services pursuant to which Shared Services manages the construction and operation of the Liquefaction Project, 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 Project and obtaining insurance. Prior to the substantial completion of each Train of the Liquefaction Project, 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 of $157,000 (adjusted for inflation) per mtpa for services performed 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. Shipping Services Agreement (“SSA”) In June 2022, CCL executed an SSA with Cheniere Marketing pursuant to which Cheniere Marketing will provide certain shipping and transportation-related services associated with CCL’s LNG sale and purchase agreement with a third party under delivery ex-ship terms, which commences upon substantial completion of the third Train of the Corpus Christi Stage 3 Project. Natural Gas Supply Agreement CCL was 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. The related party entity was acquired by a non-related party on November 1, 2021, therefore, as of such date, this agreement ceased to be considered a related party 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. CCL recorded accrued liabilities—related party of $1 million as of both June 30, 2022 and December 31, 2021 with this related party. Contracts for Sale and Purchase of Natural Gas and LNG CCL has an agreement with Sabine Pass Liquefaction, LLC that allows the parties to sell and purchase natural gas with each other. Natural gas purchased under this agreement is initially recorded as inventory and then to cost of sales—affiliate upon its sale, except for purchases related to commissioning activities which are capitalized as LNG terminal construction-in-process. 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 Rental Agreements CCL has agreements with Cheniere Land Holdings, LLC (“Cheniere Land Holdings”), a wholly owned subsidiary of Cheniere, to rent the land owned by Cheniere Land Holdings for the Liquefaction Project. The total annual rental payment is $0.6 million with terms through 2031. Easement Agreements CCL has agreements with Cheniere Land Holdings which grant CCL easements on land owned by Cheniere Land Holdings for the Liquefaction Project. 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 Master License Agreements CCL has agreements with Cheniere Land Holdings which grant CCL licenses to enter certain land owned by Cheniere Land Holdings for the Liquefaction Project. The aggregate annual payment for these agreements is $1 million, commencing January 2022 through completion of construction at the Liquefaction Project, subject to early termination. 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 Project. 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 CCL has 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 Project 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 and CCP each have a state tax sharing agreement with Cheniere. Under these agreements, Cheniere has agreed to prepare and file all state and local tax returns which each of the entities and Cheniere are required to file on a combined basis and to timely pay the combined state and local tax liability. If Cheniere, in its sole discretion, demands payment, each of the respective entities will pay to Cheniere an amount equal to the state and local tax that each of the entities would be required to pay if its state and local tax liability were calculated on a separate company basis. To date, there have been no state and local tax payments demanded by Cheniere under the tax sharing agreements. The agreements for both CCL and CCP were effective for tax returns due on or after May 2015. |
Customer Concentration
Customer Concentration | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | CUSTOMER CONCENTRATION The following table shows external customers with revenues of 10% or greater of total revenues from external customers and external customers with trade and other receivables, net of current expected credit losses and contract assets, net of current expected credit losses balances of 10% or greater of total trade and other receivables, net of current expected credit losses from external customers and contract assets, net of current expected credit losses from external customers, respectively: Percentage of Total Revenues from External Customers Percentage of Trade and Other Receivables, Net and Contract Assets, Net from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2022 2021 2022 2021 2022 2021 Customer A 20% 23% 22% 23% * * Customer B 15% 17% 14% 19% * * Customer C 14% 14% 13% 16% * * Customer D * * * * 28% 31% Customer E * * * * * 11% * Less than 10% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental disclosure of cash flow information (in millions): Six Months Ended June 30, 2022 2021 Cash paid during the period for interest on debt, net of amounts capitalized $ 222 $ 199 Non-cash contributions from affiliates for conveyance of assets 7 — Right-of-use assets obtained in exchange for new operating lease liabilities 3 — Non-cash investing activity: Contributions of property, plant and equipment in exchange for other non-current assets 17 — The balance in property, plant and equipment, net of accumulated depreciation funded with accounts payable and accrued liabilities (including affiliate) was $6 million and $28 million as of June 30, 2022 and 2021, respectively. We recorded $1.5 billion of contribution in our Statement of Member’s Equity (Deficit) during the quarter ended June 30, 2022 related to the contribution of the CCL Stage III entity to us from Cheniere on June 15, 2022, with such contribution representing a non-cash financing activity. See N ote 2—CCL Stage III Contribution and Merger for further discussion. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation The accompanying unaudited Consolidated Financial Statements of CCH have been prepared in accordance with GAAP for interim financial information and in accordance with Rule 10-01 of Regulation S-X. 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, 2021 . Results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2022. |
Income Taxes, Policy | We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements. |
Recent Accounting Standards | Recent Accounting Standards ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance primarily provides temporary optional expedients which simplify the accounting for contract modifications to existing contracts expected to arise from the market transition from LIBOR to alternative reference rates. The transition period under this standard is effective March 12, 2020 and will apply through December 31, 2022. We had interest rate swaps and various credit facilities indexed to LIBOR, as further described in Note 7—Derivative Instruments and Note 9 —Debt , respectively. In June 2022, we amended our credit facilities to bear interest at a variable rate per annum based on SOFR as a result of the expected LIBOR transition. Since adoption of the standard, we elected to apply the optional expedients as applicable to certain modified facilities, however the impact of applying the optional expedients was not material, and the transition to SOFR or other replacement rate indexes does not have a material impact on our cash flows. |
CCL Stage III Contribution an_2
CCL Stage III Contribution and Merger (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Asset Acquisition | The net liabilities of CCL Stage III contributed to us and recognized on our Consolidated Balance Sheets on June 15, 2022 consisted of the following (in millions): June 15, 2022 ASSETS Property, plant and equipment, net of accumulated depreciation $ 441 Derivatives assets 112 Other non-current assets, net 19 Total assets $ 572 LIABILITIES AND MEMBER’S DEFICIT Current liabilities Accounts payable $ 3 Due to affiliates 1 Total current liabilities 4 Derivative liabilities 2,050 Total net liabilities contributed $ (1,482) |
Trade and Other Receivables, _2
Trade and Other Receivables, Net of Current Expected Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | Trade and other receivables, net of current expected credit losses consisted of the following (in millions): June 30, December 31, 2022 2021 Trade receivables $ 394 $ 256 Other receivables 47 24 Total trade and other receivables, net of current expected credit losses $ 441 $ 280 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in millions): June 30, December 31, 2022 2021 Materials $ 88 $ 88 LNG 40 45 Natural gas 24 21 Other — 2 Total inventory $ 152 $ 156 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net of Accumulated Depreciation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): June 30, December 31, 2022 2021 LNG terminal Terminal and interconnecting pipeline facilities $ 13,281 $ 13,222 Site and related costs 302 294 Construction-in-process 729 66 Accumulated depreciation (1,200) (981) Total LNG terminal, net of accumulated depreciation 13,112 12,601 Fixed assets Fixed assets 23 23 Accumulated depreciation (18) (17) Total fixed assets, net of accumulated depreciation 5 6 Property, plant and equipment, net of accumulated depreciation $ 13,117 $ 12,607 |
Schedule of Depreciation and Offsets to LNG Terminal Costs | The following table shows depreciation expense and offsets to LNG terminal costs (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Depreciation expense $ 111 $ 110 $ 221 $ 198 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 respective Trains of the Liquefaction Project during the testing phase for its construction. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 (in millions): Fair Value Measurements as of June 30, 2022 December 31, 2021 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Interest Rate Derivatives liability $ — $ — $ — $ — $ — $ (40) $ — $ (40) Liquefaction Supply Derivatives asset (liability) (6) 33 (5,006) (4,979) 5 4 (1,221) (1,212) |
Fair Value Measurement Inputs and Valuation Techniques | The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of June 30, 2022 and December 31, 2021: Net Fair Value Liability Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $(5,006) Market approach incorporating present value techniques Henry Hub basis spread $(1.802) - $0.695 / $(0.100) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 94% - 671% / 184% (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 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 (1) 2022 2021 (1) Balance, beginning of period $ (2,235) $ (14) $ (1,221) $ 12 Realized and mark-to-market losses: Included in cost of sales (634) (255) (1,678) (314) Purchases and settlements: Purchases (2,407) 8 (2,414) 10 Settlements 270 1 307 32 Balance, end of period $ (5,006) $ (260) $ (5,006) $ (260) Change in unrealized losses relating to instruments still held at end of period $ (634) $ (255) $ (1,678) $ (314) (1) Includes amounts recorded related to natural gas supply contracts that CCL had with a related party. The agreement ceased to be considered a related party agreement during 2021, as discussed in Note 11—Related Party Transactions . |
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, 2022 Interest Rate Derivatives Liquefaction Supply Derivatives (1) Total Consolidated Balance Sheets Location Current derivative assets $ — $ 30 $ 30 Derivative assets — 108 108 Total derivative assets — 138 138 Current derivative liabilities — (1,162) (1,162) Derivative liabilities — (3,955) (3,955) Total derivative liabilities — (5,117) (5,117) Derivative liability, net $ — $ (4,979) $ (4,979) December 31, 2021 Interest Rate Derivatives Liquefaction Supply Derivatives (1) Total Consolidated Balance Sheets Location Current derivative assets $ — $ 17 $ 17 Derivative assets — 37 37 Total derivative assets — 54 54 Current derivative liabilities (40) (628) (668) Derivative liabilities — (638) (638) Total derivative liabilities (40) (1,266) (1,306) Derivative liability, net $ (40) $ (1,212) $ (1,252) |
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) for our derivative instruments that are presented on a net basis on our Consolidated Balance Sheets: Liquefaction Supply Derivatives As of June 30, 2022 Gross assets $ 151 Offsetting amounts (13) Net assets $ 138 Gross liabilities $ (5,485) Offsetting amounts 368 Net liabilities $ (5,117) As of December 31, 2021 Gross assets $ 76 Offsetting amounts (22) Net assets $ 54 Gross liabilities $ (1,295) Offsetting amounts 29 Net liabilities $ (1,266) |
Interest Rate Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | Notional Amounts June 30, 2022 December 31, 2021 Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received Interest Rate Derivatives $— $4.5 billion 2.30% One-month LIBOR |
Derivative Instruments, Gain (Loss) | The following table shows the effect and location of our Interest Rate Derivatives on our Consolidated Statements of Operations (in millions): Gain (Loss) Recognized in Consolidated Statements of Operations Consolidated Statements of Operations Location Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest Rate Derivatives Interest rate derivative gain (loss), net $ (1) $ (2) $ 2 $ (1) |
Liquefaction Supply Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Instruments, Gain (Loss) | The following table shows the effect and location of our Liquefaction Supply Derivatives recorded on our Consolidated Statements of Operations (in millions): Gain (Loss) Recognized in Consolidated Statements of Operations Consolidated Statements of Operations Location (1) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues $ 12 $ (1) $ 7 $ — Cost of sales (830) (237) (1,880) (248) Cost of sales—related party (2) — 6 — 7 (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. (2) Includes amounts recorded related to natural gas supply contracts that we had with a related party. This agreement ceased to be considered a related party agreement as of November 1, 2021 as discussed in Note 1 1 —Related Party Transactions . |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in millions): June 30, December 31, 2022 2021 Natural gas purchases $ 716 $ 531 Interest costs and related debt fees 8 7 Liquefaction Project costs 41 43 Other accrued liabilities 31 50 Total accrued liabilities $ 796 $ 631 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt consisted of the following (in millions): June 30, December 31, 2022 2021 Senior Secured Notes: 7.000% due 2024 $ 1,250 $ 1,250 5.875% due 2025 1,500 1,500 5.125% due 2027 1,500 1,500 3.700% due 2029 1,500 1,500 3.72% weighted average rate due 2039 2,721 2,721 Total Senior Secured Notes 8,471 8,471 CCH Credit Facility 779 1,728 CCH Working Capital Facility) (1) — 250 Total debt 9,250 10,449 Current portion of long-term debt — (117) Short-term debt — (250) Unamortized discount and debt issuance costs, net (82) (96) Total long-term debt, net of discount and debt issuance costs $ 9,168 $ 9,986 (1) The CCH Working Capital Facility is classified as short-term debt. |
Schedule of Line of Credit Facilities | Below is a summary of our credit facilities outstanding as of June 30, 2022 (in millions): CCH Credit Facility (1) CCH Working Capital Facility (1) Total facility size $ 4,039 $ 1,500 Less: Outstanding balance 779 — Letters of credit issued — 276 Available commitment $ 3,260 $ 1,224 Priority ranking Senior secured Senior secured Interest rate on available balance SOFR plus credit spread adjustment of 0.1% , plus margin of 1.5% or base rate plus 0.5% SOFR plus credit spread adjustment of 0.1%, plus margin of 1.0% - 1.5% or base rate plus applicable margin Weighted average interest rate of outstanding balance 3.13% n/a Commitment fees on undrawn balance 0.53% 0.18% Maturity date (2) June 15, 2027 (1) In June 2022, we amended and restated the CCH Credit Facility and CCH Working Capital Facility resulting in $20 million of debt extinguishment and modification costs to, among other things, (1) provide incremental commitments of $3.7 billion and $300 million for the CCH Credit Facility and the CCH Working Capital Facility, respectively, in connection with the FID with respect to the Corpus Christi Stage 3 Project, (2) extend the maturity, (3) update the indexed interest rate to SOFR and (4) make certain other changes to the terms and conditions of each existing facility. (2) The CCH Credit Facility matures the earlier of June 15, 2029 or two years after the substantial completion of the last Train of the Corpus Christi Stage 3 Project. |
Schedule of Interest Expense | Total interest expense, net of capitalized interest consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Total interest cost $ 118 $ 118 $ 237 $ 237 Capitalized interest, including amounts capitalized as an allowance for funds used during construction (2) — (3) (26) Total interest expense, net of capitalized interest $ 116 $ 118 $ 234 $ 211 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table shows the carrying amount and estimated fair value of our debt (in millions): June 30, 2022 December 31, 2021 Carrying Estimated Carrying Estimated Senior notes — Level 2 (1) $ 6,500 $ 6,291 $ 6,500 $ 7,095 Senior notes — Level 3 (2) 1,971 1,865 1,971 2,227 (1) The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a disaggregation of revenue earned from contracts with customers (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues $ 1,595 $ 827 $ 2,924 $ 1,441 LNG revenues—affiliate 763 331 1,434 599 Total revenues from customers 2,358 1,158 4,358 2,040 Net derivative gain (loss) (1) 12 (1) 7 — Total revenues $ 2,370 $ 1,157 $ 4,365 $ 2,040 (1) See Note 7 —Derivative Instruments |
Contract with Customer, Asset | The following table shows our contract assets, net of current expected credit losses, which are classified as other current assets and other non-current assets, net on our Consolidated Balance Sheets (in millions): June 30, December 31, 2022 2021 Contract assets, net of current expected credit losses $ 125 $ 104 |
Contract Balances Reconciliation | The following table reflects the changes in our contract liabilities, which we classify as other non-current liabilities on our Consolidated Balance Sheets (in millions): Six Months Ended June 30, 2022 Deferred revenue, beginning of period $ 35 Cash received but not yet recognized in revenue 56 Revenue recognized from prior period deferral (35) Deferred revenue, end of period $ 56 |
Transaction Price Allocated to Future Performance Obligations | The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied: June 30, 2022 December 31, 2021 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) LNG revenues $ 49.2 11 $ 31.7 9 LNG revenues—affiliate 1.3 8 1.1 10 Total revenues $ 50.5 $ 32.8 (1) The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Below is a summary of our related party transactions as reported on our Consolidated Statements of Operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 LNG revenues—affiliate Cheniere Marketing Agreements $ 707 $ 319 $ 1,372 $ 579 Contracts for Sale and Purchase of Natural Gas and LNG 56 12 62 20 Total LNG revenues—affiliate 763 331 1,434 599 Cost of sales—affiliate Contracts for Sale and Purchase of Natural Gas and LNG 36 2 48 6 Cheniere Marketing Agreements — — — 31 Total cost of sales—affiliate 36 2 48 37 Cost of sales—related party Natural Gas Supply Agreement (1) — 36 — 71 Operating and maintenance expense—affiliate Services Agreements 28 28 58 52 Operating and maintenance expense—related party Natural Gas Transportation Agreements 3 3 5 5 General and administrative expense—affiliate Services Agreements 8 7 16 12 (1) Includes amounts recorded related to natural gas supply contracts that we had with a related party. This agreement ceased to be considered a related party agreement during 2021, as discussed below. |
Customer Concentration (Tables)
Customer Concentration (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue and Accounts Receivable by Major Customers | The following table shows external customers with revenues of 10% or greater of total revenues from external customers and external customers with trade and other receivables, net of current expected credit losses and contract assets, net of current expected credit losses balances of 10% or greater of total trade and other receivables, net of current expected credit losses from external customers and contract assets, net of current expected credit losses from external customers, respectively: Percentage of Total Revenues from External Customers Percentage of Trade and Other Receivables, Net and Contract Assets, Net from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2022 2021 2022 2021 2022 2021 Customer A 20% 23% 22% 23% * * Customer B 15% 17% 14% 19% * * Customer C 14% 14% 13% 16% * * Customer D * * * * 28% 31% Customer E * * * * * 11% * Less than 10% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides supplemental disclosure of cash flow information (in millions): Six Months Ended June 30, 2022 2021 Cash paid during the period for interest on debt, net of amounts capitalized $ 222 $ 199 Non-cash contributions from affiliates for conveyance of assets 7 — Right-of-use assets obtained in exchange for new operating lease liabilities 3 — Non-cash investing activity: Contributions of property, plant and equipment in exchange for other non-current assets 17 — |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2022 mi milliontonnes / yr unit item trains | |
Corpus Christi Pipeline [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Length Of Natural Gas Pipeline | mi | 21.5 |
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 |
Corpus Christi LNG Terminal Expansion | Maximum [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Liquefaction LNG Trains | trains | 7 |
Corpus Christi LNG Terminal Expansion | Minimum [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Total Production Capability | milliontonnes / yr | 10 |
CCL Stage III Contribution an_3
CCL Stage III Contribution and Merger (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 15, 2022 | Dec. 31, 2021 | ||
Asset Acquisition [Line Items] | ||||
Property, plant and equipment, net of accumulated depreciation | $ 13,117 | $ 12,607 | ||
Derivative assets | 108 | 37 | ||
Other non-current assets, net | 351 | 145 | ||
Total assets | 14,731 | 13,764 | ||
Accounts payable | 87 | 119 | ||
Due to affiliates | 28 | 35 | ||
Total current liabilities | 2,076 | 1,821 | ||
Derivative liabilities | 3,955 | $ 638 | ||
CCH Credit Facility [Member] | ||||
Asset Acquisition [Line Items] | ||||
Total facility size | [1] | $ 4,039 | ||
CCH Credit Facility [Member] | Maximum [Member] | ||||
Asset Acquisition [Line Items] | ||||
Maturity Date | Jun. 15, 2029 | |||
CCH Working Capital Facility [Member] | ||||
Asset Acquisition [Line Items] | ||||
Total facility size | [1] | $ 1,500 | ||
Maturity Date | Jun. 15, 2027 | |||
Cheniere Corpus Christi Liquefaction Stage III, LLC [Member] | ||||
Asset Acquisition [Line Items] | ||||
Property, plant and equipment, net of accumulated depreciation | $ 441 | |||
Derivative assets | 112 | |||
Other non-current assets, net | 19 | |||
Total assets | 572 | |||
Accounts payable | 3 | |||
Due to affiliates | 1 | |||
Total current liabilities | 4 | |||
Derivative liabilities | 2,050 | |||
Total net liabilities contributed | $ (1,482) | |||
[1]In June 2022, we amended and restated the CCH Credit Facility and CCH Working Capital Facility resulting in $20 million of debt extinguishment and modification costs to, among other things, (1) provide incremental commitments of $3.7 billion and $300 million for the CCH Credit Facility and the CCH Working Capital Facility, respectively, in connection with the FID with respect to the Corpus Christi Stage 3 Project, (2) extend the maturity, (3) update the indexed interest rate to SOFR and (4) make certain other changes to the terms and conditions of each existing facility. |
Restricted Cash and Cash Equi_2
Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | $ 51 | $ 44 |
CCL Project [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | $ 51 | $ 44 |
Trade and Other Receivables, _3
Trade and Other Receivables, Net of Current Expected Credit Losses (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade receivables | $ 394 | $ 256 |
Other receivables | 47 | 24 |
Total trade and other receivables, net of current expected credit losses | $ 441 | $ 280 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Inventory | $ 152 | $ 156 |
Materials [Member] | ||
Inventory [Line Items] | ||
Inventory | 88 | 88 |
LNG [Member] | ||
Inventory [Line Items] | ||
Inventory | 40 | 45 |
Natural gas [Member] | ||
Inventory [Line Items] | ||
Inventory | 24 | 21 |
Other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 0 | $ 2 |
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, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net of accumulated depreciation | $ 13,117 | $ 12,607 |
LNG terminal costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (1,200) | (981) |
Property, plant and equipment, net of accumulated depreciation | 13,112 | 12,601 |
LNG terminal and interconnecting pipeline facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,281 | 13,222 |
LNG site and related costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 302 | 294 |
LNG terminal construction-in-process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 729 | 66 |
Fixed assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 23 | 23 |
Accumulated depreciation | (18) | (17) |
Property, plant and equipment, net of accumulated depreciation | $ 5 | $ 6 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net of Accumulated Depreciation - Schedule of Depreciation and Offsets to LNG Terminal Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Property, Plant and Equipment [Abstract] | |||||
Depreciation expense | $ 111 | $ 110 | $ 221 | $ 198 | |
Offsets to LNG terminal costs | [1] | $ 0 | $ 0 | $ 0 | $ 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 respective Trains 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, 2022 | Dec. 31, 2021 | |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 15 years | |
Liquefaction Supply Derivatives [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 8,256 | 2,915 |
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, 2022 | Dec. 31, 2021 |
Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 0 | $ (40) |
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 |
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 | 0 | (40) |
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 | (4,979) | (1,212) |
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 | (6) | 5 |
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 | 33 | 4 |
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 | $ (5,006) | $ (1,221) |
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, 2022 USD ($) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net Fair Value Liability | $ (5,006,000,000) | |
Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | (1.802) | [1] |
Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | 0.695 | [1] |
Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | $ (0.100) | [1] |
Valuation Technique, Option Pricing Model [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 94% | [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 | 671% | [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 | 184% | [1],[2] |
[1]Unobservable inputs were weighted by the relative fair value of the instruments.[2]Spread contemplates U.S. dollar-denominated pricing. |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Level 3 Activity (Details) - Physical Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | [1] | Jun. 30, 2022 | Jun. 30, 2021 | [1] | |
Fair Value, Assets (Liabilities) Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | $ (2,235) | $ (14) | $ (1,221) | $ 12 | ||
Realized and mark-to-market losses: | ||||||
Included in cost of sales | (634) | (255) | (1,678) | (314) | ||
Purchases and settlements: | ||||||
Purchases | (2,407) | 8 | (2,414) | 10 | ||
Settlements | 270 | 1 | 307 | 32 | ||
Balance, end of period | (5,006) | (260) | (5,006) | (260) | ||
Change in unrealized losses relating to instruments still held at end of period | $ (634) | $ (255) | $ (1,678) | $ (314) | ||
[1] Includes amounts recorded related to natural gas supply contracts that CCL had with a related party. The agreement ceased to be considered a related party agreement during 2021, as discussed in Note 11—Related Party Transactions . |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - Interest Rate Derivatives [Member] - USD ($) $ in Billions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 0 | $ 4.5 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Interest Rate Derivatives [Member] | Interest rate derivative loss, net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | $ (1) | $ (2) | $ 2 | $ (1) | |
Liquefaction Supply Derivatives [Member] | LNG Revenues [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | 12 | (1) | 7 | 0 |
Liquefaction Supply Derivatives [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | (830) | (237) | (1,880) | (248) |
Liquefaction Supply Derivatives [Member] | Cost of sales—related party [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1],[2] | $ 0 | $ 6 | $ 0 | $ 7 |
[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.[2] Includes amounts recorded related to natural gas supply contracts that we had with a related party. This agreement ceased to be considered a related party agreement as of November 1, 2021 as discussed in Note 1 1 —Related Party Transactions . |
Derivative Instruments - Fair_3
Derivative Instruments - Fair Value of Derivative Instruments by Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | $ 30 | $ 17 | |
Derivative assets | 108 | 37 | |
Total derivative assets | 138 | 54 | |
Current derivative liabilities | (1,162) | (668) | |
Derivative liabilities | (3,955) | (638) | |
Total derivative liabilities | (5,117) | (1,306) | |
Derivative liability, net | (4,979) | (1,252) | |
Current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | 30 | 17 | |
Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 108 | 37 | |
Current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative liabilities | (1,162) | (668) | |
Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (3,955) | (638) | |
Interest Rate Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 0 | 0 | |
Total derivative liabilities | 0 | (40) | |
Derivative liability, net | 0 | (40) | |
Interest Rate Derivatives [Member] | Current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | 0 | 0 | |
Interest Rate Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 0 | 0 | |
Interest Rate Derivatives [Member] | Current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative liabilities | 0 | (40) | |
Interest Rate Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | 0 | 0 | |
Liquefaction Supply Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [1] | 138 | 54 |
Total derivative liabilities | [1] | (5,117) | (1,266) |
Derivative liability, net | [1] | (4,979) | (1,212) |
Derivative, collateral posted by us | 25 | 13 | |
Liquefaction Supply Derivatives [Member] | Current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative assets | [1] | 30 | 17 |
Liquefaction Supply Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [1] | 108 | 37 |
Liquefaction Supply Derivatives [Member] | Current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative liabilities | [1] | (1,162) | (628) |
Liquefaction Supply Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [1] | $ (3,955) | $ (638) |
[1]Does not include collateral posted with counterparties by us of $25 million and $13 million as of June 30, 2022 and December 31, 2021, respectively, which are included in other current assets in our Consolidated Balance Sheets. |
Derivative Instruments - Deri_2
Derivative Instruments - Derivative Net Presentation on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Liquefaction Supply Derivative Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | $ 151 | $ 76 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | (13) | (22) |
Derivative Assets (Liabilities), at Fair Value, Net | 138 | 54 |
Liquefaction Supply Derivative Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (5,485) | (1,295) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 368 | 29 |
Derivative Assets (Liabilities), at Fair Value, Net | $ (5,117) | $ (1,266) |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Natural gas purchases | $ 716 | $ 531 |
Interest costs and related debt fees | 8 | 7 |
Liquefaction Project costs | 41 | 43 |
Other accrued liabilities | 31 | 50 |
Total accrued liabilities | $ 796 | $ 631 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 9,250 | $ 10,449 | |
Current portion of long-term debt | 0 | (117) | |
Short-term debt | 0 | (250) | |
Unamortized discount and debt issuance costs, net | (82) | (96) | |
Total long-term debt, net of discount and debt issuance costs | 9,168 | 9,986 | |
CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 8,471 | 8,471 | |
2024 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,250 | 1,250 | |
Debt Instrument, Interest Rate, Stated Percentage | 7% | ||
2025 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,500 | 1,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | ||
2027 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,500 | 1,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | ||
2029 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,500 | 1,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | ||
2039 CCH Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 2,721 | 2,721 | |
2039 CCH Senior Notes [Member] | Weighted Average [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.72% | ||
CCH Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 779 | 1,728 | |
CCH Working Capital Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | [1] | 0 | $ 250 |
Short-term debt | [2] | $ 0 | |
[1]The CCH Working Capital Facility is classified as short-term debt.[2]In June 2022, we amended and restated the CCH Credit Facility and CCH Working Capital Facility resulting in $20 million of debt extinguishment and modification costs to, among other things, (1) provide incremental commitments of $3.7 billion and $300 million for the CCH Credit Facility and the CCH Working Capital Facility, respectively, in connection with the FID with respect to the Corpus Christi Stage 3 Project, (2) extend the maturity, (3) update the indexed interest rate to SOFR and (4) make certain other changes to the terms and conditions of each existing facility. |
Debt - Credit Facilities Table
Debt - Credit Facilities Table (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Line of Credit Facility [Line Items] | ||||||
Outstanding balance - current | $ 0 | $ 0 | $ 250 | |||
Loss on modification or extinguishment of debt | (28) | $ 0 | (30) | $ 0 | ||
CCH Credit Facility and CCH Working Capital Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Loss on modification or extinguishment of debt | 20 | |||||
CCH Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Total facility size | [1] | 4,039 | 4,039 | |||
Outstanding balance | [1] | 779 | 779 | |||
Letters of credit issued | [1] | 0 | 0 | |||
Available commitment | [1] | $ 3,260 | $ 3,260 | |||
Debt Instrument, Description of Variable Rate Basis | SOFR or the base rate | |||||
Weighted average interest rate of outstanding balance | [1] | 3.13% | 3.13% | |||
Line of Credit Facility, Commitment Fee Percentage | 0.53% | |||||
Incremental commitments | $ 3,700 | $ 3,700 | ||||
CCH Credit Facility [Member] | Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maturity Date | Jun. 15, 2029 | |||||
CCH Credit Facility [Member] | Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | [1] | 0.50% | ||||
CCH Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Credit Spread Adjustment On Variable Rate | [1] | 0.10% | ||||
Debt Instrument, Basis Spread on Variable Rate | [1] | 1.50% | ||||
CCH Working Capital Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Total facility size | [1] | 1,500 | $ 1,500 | |||
Outstanding balance - current | [1] | 0 | 0 | |||
Letters of credit issued | [1] | 276 | 276 | |||
Available commitment | [1] | 1,224 | $ 1,224 | |||
Debt Instrument, Description of Variable Rate Basis | SOFR or the base rate | |||||
Line of Credit Facility, Commitment Fee Percentage | [1] | 0.18% | ||||
Maturity Date | Jun. 15, 2027 | |||||
Incremental commitments | $ 300 | $ 300 | ||||
CCH Working Capital Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Credit Spread Adjustment On Variable Rate | [1] | 0.10% | ||||
CCH Working Capital Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | [1] | 1% | ||||
CCH Working Capital Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | [1] | 1.50% | ||||
[1]In June 2022, we amended and restated the CCH Credit Facility and CCH Working Capital Facility resulting in $20 million of debt extinguishment and modification costs to, among other things, (1) provide incremental commitments of $3.7 billion and $300 million for the CCH Credit Facility and the CCH Working Capital Facility, respectively, in connection with the FID with respect to the Corpus Christi Stage 3 Project, (2) extend the maturity, (3) update the indexed interest rate to SOFR and (4) make certain other changes to the terms and conditions of each existing facility. |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Total interest cost | $ 118 | $ 118 | $ 237 | $ 237 |
Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction | (2) | 0 | (3) | (26) |
Total interest expense, net of capitalized interest | $ 116 | $ 118 | $ 234 | $ 211 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | $ 9,250 | $ 10,449 | |
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] | 6,500 | 6,500 |
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] | 6,291 | 7,095 |
Senior notes [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | [2] | $ 1,865 | $ 2,227 |
[1]The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments.[2]The Level 3 estimated fair value was calculated based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 2,358 | $ 1,158 | $ 4,358 | $ 2,040 | |
Net derivative gain (loss) | [1] | 12 | (1) | 7 | 0 |
Revenues | 2,370 | 1,157 | 4,365 | 2,040 | |
LNG [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 1,595 | 827 | 2,924 | 1,441 | |
Revenues | 1,607 | 826 | 2,931 | 1,441 | |
LNG—affiliate [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 763 | $ 331 | $ 1,434 | $ 599 | |
[1] See Note 7 —Derivative Instruments |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net of current expected credit losses | $ 125 | $ 104 |
Change in Contract with Customer, Liability [Roll Forward] | ||
Deferred revenue, beginning of period | 35 | |
Cash received but not yet recognized in revenue | 56 | |
Revenue recognized from prior period deferral | (35) | |
Deferred revenue, end of period | $ 56 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Schedule of Transaction Price Allocated to Future Performance Obligations (Details) - USD ($) $ in Billions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 32.8 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 50.5 | $ 50.5 | ||||
LNG [Member] | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue, Variable Consideration Received From Customers, Percentage | 72% | 49% | 68% | 48% | ||
LNG [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 31.7 | |||||
Weighted Average Recognition Timing | [1] | 9 years | ||||
LNG [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 49.2 | $ 49.2 | ||||
Weighted Average Recognition Timing | [1] | 11 years | 11 years | |||
LNG—affiliate [Member] | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Revenue, Variable Consideration Received From Customers, Percentage | 0% | 0% | 0% | 0% | ||
LNG—affiliate [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 1.1 | |||||
Weighted Average Recognition Timing | [1] | 10 years | ||||
LNG—affiliate [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||
Unsatisfied Transaction Price | $ 1.3 | $ 1.3 | ||||
Weighted Average Recognition Timing | [1] | 8 years | 8 years | |||
[1]The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Related Party Transaction [Line Items] | |||||
LNG revenues—affiliate | $ 763 | $ 331 | $ 1,434 | $ 599 | |
Cost of sales—affiliate | 36 | 2 | 48 | 37 | |
Cost of sales—related party | 0 | 36 | 0 | 71 | |
Operating and maintenance expense—affiliate | 28 | 28 | 58 | 52 | |
Operating and maintenance expense—related party | 3 | 3 | 5 | 5 | |
General and administrative expense—affiliate | 8 | 7 | 16 | 12 | |
Cheniere Marketing Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
LNG revenues—affiliate | 707 | 319 | 1,372 | 579 | |
Cost of sales—affiliate | 0 | 0 | 0 | 31 | |
Contracts for Sale and Purchase of Natural Gas And LNG [Member] | |||||
Related Party Transaction [Line Items] | |||||
LNG revenues—affiliate | 56 | 12 | 62 | 20 | |
Cost of sales—affiliate | 36 | 2 | 48 | 6 | |
Natural Gas Supply Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Cost of sales—related party | [1] | 0 | 36 | 0 | 71 |
Service Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Operating and maintenance expense—affiliate | 28 | 28 | 58 | 52 | |
General and administrative expense—affiliate | 8 | 7 | 16 | 12 | |
Natural Gas Transportation Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Operating and maintenance expense—related party | $ 3 | $ 3 | $ 5 | $ 5 | |
[1]Includes amounts recorded related to natural gas supply contracts that we had with a related party. This agreement ceased to be considered a related party agreement during 2021, as discussed below. |
Related Party Transactions - LN
Related Party Transactions - LNG Sale and Purchase Agreements (Details) | 6 Months Ended | |
Jun. 30, 2022 USD ($) tbtu Cargo | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | ||
Due to affiliates | $ | $ 28,000,000 | $ 35,000,000 |
CCL [Member] | Affiliated Entity [Member] | Facility Swap Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115% | |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable—affiliate | $ | $ 294,000,000 | $ 314,000,000 |
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 | 150 | |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing SPA [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Volumes | 15 | |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing EOG SPA [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Volumes | 44 | |
CCL [Member] | Cheniere Marketing [Member] | Cheniere Marketing ARC IPM | ||
Related Party Transaction [Line Items] | ||
SPA, Term of Agreement | 15 years | |
Contract Volumes | 44 | |
CCL [Member] | Cheniere Marketing [Member] | Letter Agreement | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115% | |
LNG Volume, Purchase Price Per MMBtu | $ | $ 1.97 | |
CCL [Member] | Cheniere Marketing [Member] | Letter Agreement | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Cargoes | Cargo | 48 |
Related Party Transactions - Se
Related Party Transactions - Service Agreements (Details) - CCL [Member] | Jun. 30, 2022 USD ($) |
Shared Services [Member] | Gas and Power Supply Services Agreement [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Committed Monthly Fee | $ 30,000 |
Shared Services [Member] | Management Services Agreement [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Committed Monthly Fee | 157,000 |
O&M Services [Member] | Operation and Maintenance Agreement [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Committed Monthly Fee | $ 53,000 |
Related Party Transactions - Na
Related Party Transactions - Natural Gas Transportation Agreement (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Accrued liabilities—related party | $ 1 | $ 1 |
CCL [Member] | Natural Gas Transportation Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Long-term Purchase Commitment, Period | 10 years | |
Accrued liabilities—related party | $ 1 | $ 1 |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) yd3 | |
CCL [Member] | Cheniere Land Holdings [Member] | Rental Agreements [Member] | |
Related Party Transaction [Line Items] | |
Annual lease payment | $ 600,000 |
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] | Licensing Agreements | |
Related Party Transaction [Line Items] | |
Annual lease payment | $ 1,000,000 |
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 [Member] | Tax Sharing Agreement [Member] | |
Related Party Transaction [Line Items] | |
Income Taxes Paid, Net | $ 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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Customer A [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 20% | 23% | 22% | 23% | |
Customer B [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 15% | 17% | 14% | 19% | |
Customer C [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 14% | 14% | 13% | 16% | |
Customer D [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 28% | 31% | |||
Customer E [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 11% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid during the period for interest on debt, net of amounts capitalized | $ 222 | $ 199 | |
Non-cash contributions from affiliates for conveyance of assets | 7 | 0 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 3 | 0 | |
Contributions of property, in exchange for other non-current assets | 17 | 0 | |
Balance in property, plant and equipment, net of accumulated depreciation funded with accounts payable and accrued liabilities (including affiliate) | 6 | $ 28 | |
Contribution of CCL Stage III entity | $ (1,482) | $ 1,500 |