Quarterly report pursuant to Section 13 or 15(d)

PROPERTY, PLANT AND EQUIPMENT

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PROPERTY, PLANT AND EQUIPMENT
 6 Months Ended
Jun. 30, 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):
June 30, 2022 December 31, 2021
Upstream natural gas assets:
Proved properties $ 156,105  $ 96,297 
Wells in progress 13,115  17,653 
Accumulated DD&A (58,270) (48,638)
Total upstream natural gas assets, net 110,950  65,312 
Driftwood Project assets:
Land and land improvements 49,169  25,222 
Driftwood terminal construction in progress 189,980  — 
Finance lease assets, net of accumulated DD&A 57,295  57,883 
Buildings and other assets, net of accumulated DD&A 356  371 
Total Driftwood Project, net 296,800  83,476 
Fixed assets and other:
Leasehold improvements and other assets 2,928  3,104 
Accumulated DD&A (1,528) (1,347)
Total fixed assets and other, net 1,400  1,757 
Total property, plant and equipment, net $ 409,150  $ 150,545 
Land
We own land in Louisiana intended for the construction of the Driftwood Project.
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 and commenced 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. During the six months ended June 30, 2022, we capitalized approximately $66.6 million of directly identifiable project costs as construction in progress.