CHENIERE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED terms of the index-based physical natural gas supply contracts range up to approximately 15 years, some of which commence upon the satisfaction of certain events or states of affairs. We have entered into, and may from time to time enter into, financial LNG Trading Derivatives in the form of swaps, forwards, options or futures to economically hedge exposure to the commodity markets in which we have contractual arrangements to purchase or sell physical LNG. We have entered into LNG Trading Derivatives to secure a fixed price position to minimize future cash flow variability associated with LNG purchase and sale transactions. The following table shows the fair value and location of our Liquefaction Supply Derivatives and LNG Trading Derivatives (collectively, “Commodity Derivatives”) on our Consolidated Balance Sheets (in millions, except notional amount): The following table shows the changes in the fair value, settlements and location of our Commodity Derivatives recorded on our Consolidated Statements of Operations during the years ended December 31, 2019, 2018 and 2017 (in millions): (1) 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) Does not include the realized value associated with derivative instruments that settle through physical delivery. (3) CCL recorded $85 million in cost of sales under a natural gas supply contract with a related party during the year ended December 31, 2019, including $1 million of Liquefaction Supply Derivatives loss. As of December 31, 2019, $3 million was included in accrued liabilities related to this contract. CCL did not have any transactions during the years ended December 31, 2018 and 2017 under this contract. (3) Includes 120 TBtu and 55 TBtu as of December 31, 2019 and 2018, respectively, for a natural gas supply contract CCL has with a related party. (2) Does not include collateral posted with counterparties by us of $5 million and $9 million deposited for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of December 31, 2019 and 2018, respectively. (1) Does not include collateral posted with counterparties by us of $7 million and $5 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of December 31, 2019 and 2018, respectively. Includes derivative assets of $3 million and $2 million and non-current assets of $2 million and $3 million as of December 31, 2019 and 2018, respectively, for a natural gas supply contract CCL has with a related party. Consolidated Statements of Operations Location (1) Year Ended December 31, 2019 2018 2017 LNG Trading Derivatives gain (loss) LNG revenues $ 402 $ (25 ) $ (44 ) LNG Trading Derivatives loss Cost of sales (89) — — Liquefaction Supply Derivatives gain (loss) (2) LNG revenues 2 (1 ) — Liquefaction Supply Derivatives gain (loss) (2)(3) Cost of sales 194 (100) (24) December 31, 2019 December 31, 2018 Liquefaction Supply Derivatives (1) LNG Trading Derivatives (2) Total Liquefaction Supply Derivatives (1) LNG Trading Derivatives (2) Total Consolidated Balance Sheet Location Derivative assets $ 93 $ 225 $ 318 $ 13 $ 24 $ 37 Non-current derivative assets 174 — 174 46 — 46 Total derivative assets 267 225 492 59 24 83 Derivative liabilities (16 ) (60 ) (76 ) (79 ) (48 ) (127 ) Non-current derivative liabilities (102) — (102) (22) — (22) Total derivative liabilities (118 ) (60 ) (178 ) (101 ) (48 ) (149 ) Derivative asset (liability), net $ 149 $ 165 $ 314 $ (42 ) $ (24 ) $ (66 ) Notional amount, net (in TBtu) (3) 9,177 4 5,832 12 88