Quarterly report pursuant to Section 13 or 15(d)

PROPERTY, PLANT AND EQUIPMENT

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PROPERTY, PLANT AND EQUIPMENT
 3 Months Ended
Mar. 31, 2022
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT
NOTE 3 — PROPERTY, PLANT AND EQUIPMENT
The components of property, plant and equipment consist of the following (in thousands):
March 31, 2022 December 31, 2021
Upstream natural gas assets
Proved properties $ 117,336  $ 96,297 
Wells in progress 25,497  17,653 
Accumulated DD&A (52,539) (48,638)
Total upstream natural gas assets, net 90,294  65,312 
Driftwood Project
Land and land improvements 50,950  25,222 
Driftwood terminal construction in progress 148,930  — 
Finance lease assets, net of accumulated DD&A 57,589 57,883
Buildings and other assets, net of accumulated DD&A 363  371 
Total Driftwood Project, net 257,832  83,476 
Fixed assets and other
Leasehold improvements and other assets 4,443  3,104 
Accumulated DD&A (1,437) (1,347)
Total fixed assets and other, net 3,006  1,757 
Total property, plant and equipment, net $ 351,132  $ 150,545 
Land
We own land in Louisiana intended for the construction of the Driftwood Project. During the three months ended March 31, 2022, we acquired land essential for the construction of the Driftwood Project at a total cost of $19.0 million, inclusive of capitalized land purchase options of approximately $5.5 million.
Driftwood Terminal Construction in Progress
During the year ended December 31, 2021, the Company initiated certain owner construction activities necessary to proceed under our LSTK EPC agreement with Bechtel Energy Inc., formerly known as Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”), for Phase 1 of the Driftwood terminal dated as of November 10, 2017 (the “Phase 1 EPC Agreement”). On March 24, 2022, the Company issued a limited notice to proceed to Bechtel under the Phase 1 EPC Agreement to commence construction of Phase 1 of the Driftwood terminal on April 4, 2022. As the Company commenced construction activities, Deferred engineering costs and Permitting Costs of approximately $110.0 million and $13.4 million, respectively, were transferred to construction in progress as of March 31, 2022. The Company capitalizes all directly identifiable project costs as construction in progress until the constructed assets are placed in service.