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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
or
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from            to            
Commission file number 001-33366
Cheniere Energy Partners, L.P.
(Exact name of registrant as specified in its charter)
Delaware20-5913059
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
700 Milam Street, Suite 1900
Houston, Texas 77002
(Address of principal executive offices) (Zip Code)
(713) 375-5000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: 
Title of each classTrading SymbolName of each exchange on which registered
Common Units Representing Limited Partner InterestsCQPNYSE American
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes    No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes     No 
As of October 29, 2021, the registrant had 484,025,623 common units outstanding.




CHENIERE ENERGY PARTNERS, L.P.
TABLE OF CONTENTS







i



DEFINITIONS
As used in this quarterly report, the terms listed below have the following meanings: 

Common Industry and Other Terms
Bcfbillion cubic feet
Bcf/dbillion cubic feet per day
Bcf/yrbillion cubic feet per year
Bcfebillion cubic feet equivalent
DOEU.S. Department of Energy
EPCengineering, procurement and construction
FERCFederal Energy Regulatory Commission
FTA countriescountries with which the United States has a free trade agreement providing for national treatment for trade in natural gas
GAAPgenerally accepted accounting principles in the United States
Henry Hubthe final settlement price (in USD per MMBtu) for the New York Mercantile Exchange’s Henry Hub natural gas futures contract for the month in which a relevant cargo’s delivery window is scheduled to begin
LIBORLondon Interbank Offered Rate
LNGliquefied natural gas, a product of natural gas that, through a refrigeration process, has been cooled to a liquid state, which occupies a volume that is approximately 1/600th of its gaseous state
MMBtumillion British thermal units; one British thermal unit measures the amount of energy required to raise the temperature of one pound of water by one degree Fahrenheit
mtpamillion tonnes per annum
non-FTA countriescountries with which the United States does not have a free trade agreement providing for national treatment for trade in natural gas and with which trade is permitted
SECU.S. Securities and Exchange Commission
SPALNG sale and purchase agreement
TBtu
trillion British thermal units; one British thermal unit measures the amount of energy required to raise the temperature of one pound of water by one degree Fahrenheit
Trainan industrial facility comprised of a series of refrigerant compressor loops used to cool natural gas into LNG
TUAterminal use agreement




1



Abbreviated Legal Entity Structure

The following diagram depicts our abbreviated legal entity structure as of September 30, 2021, including our ownership of certain subsidiaries, and the references to these entities used in this quarterly report:
cqp-20210930_g1.jpg
Unless the context requires otherwise, references to “Cheniere Partners,” “the Partnership,” “we,” “us” and “our” refer to Cheniere Energy Partners, L.P. and its consolidated subsidiaries, including SPLNG, SPL and CTPL. 



2




PART I.     FINANCIAL INFORMATION

ITEM 1.    CONSOLIDATED FINANCIAL STATEMENTS
CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per unit data)
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenues
LNG revenues$1,791 $807 $5,057 $3,588 
LNG revenues—affiliate453 103 878 352 
Regasification revenues68 67 202 202 
Other revenues12 5 39 28 
Total revenues2,324 982 6,176 4,170 
Operating costs and expenses 
Cost of sales (excluding items shown separately below)1,342 454 3,178 1,551 
Cost of sales—affiliate8 33 62 38 
Cost of sales—related party  1  
Operating and maintenance expense148 146 465 463 
Operating and maintenance expense—affiliate34 34 103 115 
Operating and maintenance expense—related party12  34  
Development expense  1  
General and administrative expense2 2 7 12 
General and administrative expense—affiliate22 24 64 73 
Depreciation and amortization expense140 137 417 413 
Impairment expense and loss on disposal of assets  6 5 
Total operating costs and expenses1,708 830 4,338 2,670 
Income from operations616 152 1,838 1,500 
Other income (expense) 
Interest expense, net of capitalized interest(210)(221)(636)(691)
Loss on modification or extinguishment of debt(27) (81)(43)
Other income, net2 2 2 8 
Total other expense(235)(219)(715)(726)
Net income (loss)$381 $(67)$1,123 $774 
Basic and diluted net income (loss) per common unit$0.69 $(0.08)$2.07 $1.55 
Weighted average number of common units outstanding used for basic and diluted net income (loss) per common unit calculation484.0 414.8 484.0 370.9 

The accompanying notes are an integral part of these consolidated financial statements.

3


CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions, except unit data)
September 30,December 31,
20212020
ASSETS(unaudited) 
Current assets  
Cash and cash equivalents$1,713 $1,210 
Restricted cash133 97 
Accounts and other receivables, net of current expected credit losses358 318 
Accounts receivable—affiliate198 184 
Advances to affiliate130 144 
Inventory134 107 
Current derivative assets44 14 
Other current assets105 61 
Total current assets2,815 2,135 
Property, plant and equipment, net of accumulated depreciation16,820 16,723 
Operating lease assets, net of accumulated amortization93 99 
Debt issuance costs, net of accumulated amortization13 17 
Derivative assets25 11 
Other non-current assets, net163 160 
Total assets$19,929 $19,145 
LIABILITIES AND PARTNERS’ EQUITY  
Current liabilities
Accounts payable$14 $12 
Accrued liabilities846 658 
Accrued liabilities—related party5 4 
Current debt, net of discount and debt issuance costs944  
Due to affiliates45 53 
Deferred revenue166 137 
Deferred revenue—affiliate4 1 
Current operating lease liabilities8 7 
Current derivative liabilities23 11 
Total current liabilities2,055 883 
Long-term debt, net of premium, discount and debt issuance costs17,171 17,580 
Non-current deferred revenue1  
Operating lease liabilities85 90 
Derivative liabilities13 35 
Other non-current liabilities 1 
Other non-current liabilities—affiliate15 17 
Partners’ equity
Common unitholders’ interest (484.0 million units issued and outstanding at both September 30, 2021 and December 31, 2020)
856 714 
General partner’s interest (2% interest with 9.9 million units issued and outstanding at September 30, 2021 and December 31, 2020)
(267)(175)
Total partners’ equity589 539 
Total liabilities and partners’ equity$19,929 $19,145 
The accompanying notes are an integral part of these consolidated financial statements.

4


CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY
(in millions)
(unaudited)
Three and Nine Months Ended September 30, 2021
Common Unitholders’ InterestSubordinated Unitholder’s InterestGeneral Partner’s InterestTotal Partners’ Equity
UnitsAmountUnitsAmountUnitsAmount
Balance at December 31, 2020484.0 $714  $ 9.9 $(175)$539 
Net income— 340 —  — 7 347 
Distributions
Common units, $0.655/unit
— (316)— — — — (316)
General partner units— — — — — (35)(35)
Balance at March 31, 2021484.0 738   9.9 (203)535 
Net income— 387 —  — 8 395 
Distributions
Common units, $0.660/unit
— (320)— — — — (320)
General partner units— — — — — (39)(39)
Balance at June 30, 2021484.0 805   9.9 (234)571 
Net income— 373 —  — 8 381 
Distributions
Common units, $0.665/unit
— (322)— — — — (322)
General partner units— — — — — (41)(41)
Balance at September 30, 2021484.0 $856  $ 9.9 $(267)$589 

Three and Nine Months Ended September 30, 2020
Common Unitholders’ InterestSubordinated Unitholder’s InterestGeneral Partner’s InterestTotal Partners’ Equity
UnitsAmountUnitsAmountUnitsAmount
Balance at December 31, 2019348.6 $1,792 135.4 $(996)9.9 $(81)$715 
Net income— 307 — 119 — 9 435 
Distributions
Common units, $0.630/unit
— (220)— — — — (220)
Subordinated units, $0.630/unit
— — — (85)— — (85)
General partner units— — — — — (25)(25)
Balance at March 31, 2020348.6 1,879 135.4 (962)9.9 (97)820 
Net income— 287 — 111 — 8 406 
Distributions
Common units, $0.640/unit
— (223)— — — — (223)
Subordinated units, $0.640/unit
— — — (86)— — (86)
General partner units— — — — — (29)(29)
Balance at June 30, 2020348.6 $1,943 135.4 $(937)9.9 $(118)$888 
Net loss— (65)— (1)— (1)(67)
Conversion of subordinated units into common units135.4 (1,026)(135.4)1,026    
Distributions
Common units, $0.645/unit
— (225)— — — — (225)
Subordinated units, $0.645/unit
— — — (88)— — (88)
General partner units— — — — — (30)(30)
Balance at September 30, 2020484.0 $627  $ 9.9 $(149)$478 

The accompanying notes are an integral part of these consolidated financial statements.

5


CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
 Nine Months Ended September 30,
20212020
Cash flows from operating activities  
Net income$1,123 $774 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense417 413 
Amortization of debt issuance costs, premium and discount22 24 
Loss on modification or extinguishment of debt81 43 
Total losses (gains) on derivatives, net(64)38 
Net cash provided by (used for) settlement of derivative instruments10 (2)
Impairment expense and loss on disposal of assets6 5 
Other13 10 
Changes in operating assets and liabilities:
Accounts and other receivables, net of current expected credit losses(41)93 
Accounts receivable—affiliate(13)23 
Advances to affiliate11 31 
Inventory(26)2 
Accounts payable and accrued liabilities165 (96)
Accrued liabilities—related party1 2 
Due to affiliates(6)(3)
Deferred revenue29 24 
Other, net(62)(45)
Other, net—affiliate1 (3)
Net cash provided by operating activities1,667 1,333 
Cash flows from investing activities  
Property, plant and equipment(495)(795)
Net cash used in investing activities(495)(795)
Cash flows from financing activities  
Proceeds from issuances of debt2,700 1,995 
Repayments of debt(2,172)(2,000)
Debt issuance and other financing costs(35)(34)
Debt extinguishment costs(61)(39)
Distributions to owners(1,073)(1,011)
Other8  
Net cash used in financing activities(633)(1,089)
Net increase (decrease) in cash, cash equivalents and restricted cash539 (551)
Cash, cash equivalents and restricted cash—beginning of period1,307 1,962 
Cash, cash equivalents and restricted cash—end of period$1,846 $1,411 

Balances per Consolidated Balance Sheets:
September 30,
2021
Cash and cash equivalents$1,713 
Restricted cash133 
Total cash, cash equivalents and restricted cash$1,846 

The accompanying notes are an integral part of these consolidated financial statements.

6


CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


NOTE 1—NATURE OF OPERATIONS AND BASIS OF PRESENTATION

The Sabine Pass LNG terminal is located in Cameron Parish, Louisiana, and has natural gas liquefaction facilities consisting of five operational natural gas liquefaction Trains and one additional Train that is undergoing commissioning and expected to be substantially completed in the first quarter of 2022, for a total production capacity of approximately 30 mtpa of LNG (the “Liquefaction Project”). The Sabine Pass LNG terminal also has operational regasification facilities that include five LNG storage tanks, vaporizers and two marine berths, with an additional marine berth that is under construction. We also own a 94-mile pipeline through our subsidiary, CTPL, that interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines (the “Creole Trail Pipeline”).

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements of Cheniere Partners have been prepared in accordance with GAAP for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended December 31, 2020.

Results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2021.

We are not subject to either federal or state income tax, as our partners are taxed individually on their allocable share of our taxable income. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements.

Recent Accounting Standards

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance primarily provides temporary optional expedients which simplify the accounting for contract modifications to existing debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The optional expedients were available to be used upon issuance of this guidance but we have not yet applied the guidance because we have not yet modified any of our existing contracts for reference rate reform. Once we apply an optional expedient to a modified contract and adopt this standard, the guidance will be applied to all subsequent applicable contract modifications until December 31, 2022, at which time the optional expedients are no longer available.

NOTE 2—UNITHOLDERS’ EQUITY
 
The common units represent limited partner interests in us. The holders of the units are entitled to participate in partnership distributions and exercise the rights and privileges available to limited partners under our partnership agreement. Our partnership agreement requires that, within 45 days after the end of each quarter, we distribute all of our available cash (as defined in our partnership agreement). Generally, our available cash is our cash on hand at the end of a quarter less the amount of any reserves established by our general partner. All distributions paid to date have been made from accumulated operating surplus as defined in the partnership agreement.

Although common unitholders are not obligated to fund losses of the Partnership, its capital account, which would be considered in allocating the net assets of the Partnership were it to be liquidated, continues to share in losses.

The general partner interest is entitled to at least 2% of all distributions made by us. In addition, the general partner holds incentive distribution rights (“IDRs”), which allow the general partner to receive a higher percentage of quarterly distributions of available cash from operating surplus as additional target levels are met, but may transfer these rights separately from its general partner interest. The higher percentages range from 15% to 50%, inclusive of the general partner interest.
 
7


CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(unaudited)
As of September 30, 2021, our total securities beneficially owned in the form of common units were held 48.6% by Cheniere, 41.4% by CQP Target Holdco L.L.C. (“CQP Target Holdco”) and other affiliates of The Blackstone Group Inc. (“Blackstone”) and Brookfield Asset Management Inc. (“Brookfield”) and 8.0% by the public. All of our 2% general partner interest was held by Cheniere. CQP Target Holdco’s equity interests are 50.00% owned by BIP Chinook Holdco L.L.C., an affiliate of Blackstone and 50.00% owned by BIF IV Cypress Aggregator (Delaware) LLC, an affiliate of Brookfield. The ownership of CQP Target Holdco, Blackstone and Brookfield are based on their most recent filings with the SEC.

NOTE 3—RESTRICTED CASH
 
Restricted cash consists of funds that are contractually or legally restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our Consolidated Balance Sheets. As of September 30, 2021 and December 31, 2020, we had $133 million and $97 million of restricted cash, respectively.

Pursuant to the accounts agreement entered into with the collateral trustee for the benefit of SPL’s debt holders, SPL is 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.

NOTE 4—ACCOUNTS AND OTHER RECEIVABLES, NET OF CURRENT EXPECTED CREDIT LOSSES

As of September 30, 2021 and December 31, 2020, accounts and other receivables, net of current expected credit losses consisted of the following (in millions):
September 30,December 31,
20212020
SPL trade receivable$338 $300 
Other accounts receivable20 18 
Total accounts and other receivables, net of current expected credit losses$358 $318 

NOTE 5—INVENTORY

As of September 30, 2021 and December 31, 2020, inventory consisted of the following (in millions):
September 30,December 31,
20212020
Materials$83 $81 
LNG33 8 
Natural gas16 17 
Other2 1 
Total inventory$134 $107 

NOTE 6—PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
 
As of September 30, 2021 and December 31, 2020, property, plant and equipment, net of accumulated depreciation consisted of the following (in millions):
September 30,December 31,
20212020
LNG terminal  
LNG terminal and interconnecting pipeline facilities$16,950 $16,908 
LNG terminal construction-in-process2,623 2,154 
Accumulated depreciation(2,757)(2,344)
Total LNG terminal, net of accumulated depreciation16,816 16,718 
Fixed assets  
Fixed assets30 29 
Accumulated depreciation(26)(24)
Total fixed assets, net of accumulated depreciation4 5 
Property, plant and equipment, net of accumulated depreciation$16,820 $16,723 
8


CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(unaudited)
The following table shows depreciation expense during the three and nine months ended September 30, 2021 and 2020 (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Depreciation expense$139 $135 $414 $409 

NOTE 7—DERIVATIVE INSTRUMENTS

We have entered into commodity derivatives consisting of natural gas supply contracts for the commissioning and operation of the Liquefaction Project (“Physical Liquefaction Supply Derivatives”) and associated economic hedges (“Financial Liquefaction Supply Derivatives,” and collectively with the Physical Liquefaction Supply Derivatives, the “Liquefaction Supply Derivatives”).

We recognize our derivative instruments as either assets or liabilities and measure those instruments at fair value. None of our derivative instruments are designated as cash flow or fair value hedging instruments, and changes in fair value are recorded within our Consolidated Statements of Operations to the extent not utilized for the commissioning process, in which case it is capitalized.

The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 (in millions):
Fair Value Measurements as of
September 30, 2021December 31, 2020
Quoted Prices in Active Markets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
TotalQuoted Prices in Active Markets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Total
Liquefaction Supply Derivatives asset (liability)$(18)$(8)$59 $33 $1 $(1)$(21)$(21)

We value our Liquefaction Supply Derivatives using a market-based approach incorporating present value techniques, as needed, using observable commodity price curves, when available, and other relevant data.

The fair value of our Physical Liquefaction Supply Derivatives is predominantly driven by observable and unobservable market commodity prices and, as applicable to our natural gas supply contracts, our assessment of the associated events deriving fair value, including evaluating whether the respective market is available as pipeline infrastructure is developed. The fair value of our Physical Liquefaction Supply Derivatives incorporates risk premiums related to the satisfaction of conditions precedent, such as completion and placement into service of relevant pipeline infrastructure to accommodate marketable physical gas flow. As of September 30, 2021 and December 31, 2020, some of our Physical Liquefaction Supply Derivatives existed within markets for which the pipeline infrastructure was under development to accommodate marketable physical gas flow.

We include a portion of our Physical Liquefaction Supply Derivatives as Level 3 within the valuation hierarchy as the fair value is developed through the use of internal models which incorporate significant unobservable inputs. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks, such as future prices of energy units for unobservable periods, liquidity, volatility and contract duration.

9


CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(unaudited)
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 prices. The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of September 30, 2021:
Net Fair Value Asset
(in millions)
Valuation ApproachSignificant Unobservable InputRange of Significant Unobservable Inputs / Weighted Average (1)
Physical Liquefaction Supply Derivatives$59Market approach incorporating present value techniquesHenry Hub basis spread
$(1.333) - $0.415 / $0.015
(1)Unobservable inputs were weighted by the relative fair value of the instruments.

Increases or decreases in basis, 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 during the three and nine months ended September 30, 2021 and 2020 (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Balance, beginning of period$33 $51 $(21)$24 
Realized and mark-to-market gains (losses):
Included in cost of sales25 (47)79 (22)
Purchases and settlements:
Purchases4 5 6 4 
Settlements(3)(8)(5)(6)
Transfers out of Level 3, net (1) (1)  
Balance, end of period$59 $ $59 $ 
Change in unrealized gains (losses) relating to instruments still held at end of period$25 $(47)$79 $(22)
(1)Transferred into Level 3 as a result of unobservable market, or out of Level 3 as a result of observable market for the underlying natural gas purchase agreements.

All counterparty derivative contracts provide for the unconditional right of set-off in the event of default. We have elected to report derivative assets and liabilities arising from our derivative contracts with the same counterparty on a net basis. The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments in instances when our derivative instruments are in an asset position. Additionally, counterparties are at risk that we will be unable to meet our commitments in instances where our derivative instruments are in a liability position. We incorporate both our own nonperformance risk and the respective counterparty’s nonperformance risk in fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of any applicable credit enhancements, such as collateral postings, set-off rights and guarantees.

Liquefaction Supply Derivatives

SPL has entered into primarily index-based physical natural gas supply contracts and associated economic hedges to purchase natural gas for the commissioning and operation of the Liquefaction Project. The remaining terms of the physical natural gas supply contracts range up to 10 years, some of which commence upon the satisfaction of certain events or states of affairs. The terms of the Financial Liquefaction Supply Derivatives range up to approximately three years.

The notional natural gas position of our Liquefaction Supply Derivatives was approximately 5,135 TBtu and 4,970 TBtu as of September 30, 2021 and December 31, 2020, respectively, of which 99 TBtu and 91 TBtu, respectively, were for a natural gas supply contract that SPL has with a related party.

10


CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(unaudited)
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 Liquefaction Supply Derivatives on our Consolidated Balance Sheets (in millions):
Fair Value Measurements as of (1)
Consolidated Balance Sheets LocationSeptember 30, 2021December 31, 2020
Current derivative assets$44 $14 
Derivative assets25 11 
Total derivative assets69 25 
Current derivative liabilities(23)(11)
Derivative liabilities(13)(35)
Total derivative liabilities(36)(46)
Derivative asset (liability), net$33 $(21)
(1)Does not include collateral posted with counterparties by us of $