Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (November 2007)
20 slides from Cheniere Energy's investor presentation, Nov 14, 2007
Slide 1: Corporate Presentation November 2007
Corporate Presentation November 2007 CHENIERE ENERGY, INC. (Gp:) *Corpus Christi LNG, LLC Cheniere Energy, Inc. 100% *Artist’s Rendition (Gp:) *Creole Trail LNG, L.P. Cheniere Energy, Inc. 100% *Freeport LNG Development, L.P. Cheniere Energy, Inc. 30% * Sabine Pass LNG, L.P. Cheniere Energy Partners
Slide 2: Forward-looking statements
This presentation contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements, other than statements of histo
Slide 3: Value Drivers
Value Drivers Cheniere Marketing Asset Development Partnership Interests Sabine Pass LNG 4.0 Bcf/d LNG TerminalCheniere Energy Partners, L.P. [AMEX:CQP] 91% Interest (GP & LP units) Creole Trail LNG Terminal Creole Trail Pipeline Corpus Christi LNG Terminal Freeport LNG Development, L.P. (Freeport L
Slide 4: Freeport LNG Development, L.P.
Freeport LNG Development, L.P. Cheniere Energy, Inc. 30% * Expect to begin cash distributions in 3rd quarter 2008
Slide 5: Cheniere Energy Partners, L.P. (AMEX: CQP)
Cheniere Energy Partners, L.P. (AMEX: CQP) Sabine Pass LNG, L.P. Cheniere Energy, Inc. 91% Sabine Pass Construction Site – November 2007
Slide 6: Sabine Pass Terminal Update November 2007
Sabine Pass Terminal Update November 2007
Slide 7: Cheniere Energy Partners Growth Projects
Cheniere Energy Partners Growth Projects Fuel Efficiency Projects at Sabine Pass LNG Waste Heat Recovery and Ambient Air Vaporizers (AAV) More economical process to reheat LNG, replaces SCVs Developed over next few years, expected in-service 2010 – 2011 Funding from excess cash and financing Louisia
Slide 8: Louisiana Natural Gas Header Proposed Pipeline
Louisiana Natural Gas Header Proposed Pipeline After construction completion it will provide supply diversity Access to new and existing LNG gas supply in and around Louisiana; nearly 10 Bcf/d regas capacity by 2010 Access to traditional offshore, onshore and recently developed unconventional supply
Slide 9: Louisiana Natural Gas Header map
Dq SESH – Lucedale SONAT Gulf South FGT 11 Tennessee Dequincy TGC, TETCO, Transco 45, Sempra, Liberty Storage Cheniere Sabine Pass LNG Johnson Bayou NGPL, Bridgeline, SWLateral TETCO FGT Tennessee (Gp:) Scale – Approximate (Gp:) 0 (Gp:) 40 (Gp:) 60 miles (Gp:) 20 FGT 9 Am LIG Louisiana Natural Gas H
Slide 10: Value Drivers
Value Drivers Cheniere Marketing Asset Development Partnership Interests Sabine Pass LNG 4.0 Bcf/d LNG Terminal Cheniere Energy Partners, L.P. [AMEX:CQP] 91% Interest (GP & LP units) Creole Trail LNG Terminal Creole Trail Pipeline Corpus Christi LNG Terminal Freeport LNG Development, L.P. (Freeport
Slide 11: Creole Trail pipeline interconnects and markets
Sabine PL Targa Transco Gulf South Trunkline Jefferson Island Storage Sabine Pass LNG Terminal Phase I – 2Q 2008 Phase II – 2Q 2009 Creole Trail LNG Terminal Henry Hub Varibus NGPL Transco Bridgeline Tennessee Florida Gas Creole Trail Pipeline* Liberty Storage Starks Storage Hackberry Storage Texas
Slide 12: Value Drivers
Value Drivers Cheniere Marketing Asset Development Partnership Interests Sabine Pass LNG 4.0 Bcf/d LNG Terminal Cheniere Energy Partners, L.P. [AMEX:CQP] 91% Interest (GP & LP units) Creole Trail LNG Terminal Creole Trail Pipeline Corpus Christi LNG Terminal Freeport LNG Development, L.P. (Freeport
Slide 13: New Liquefaction Competes for Market Share
New Liquefaction Competes for Market Share Source: CERA, 2006 Atlantic Basin 12 Bcf/d ME Gulf 11 Bcf/d Asia Pacific 13 Bcf/d 2005 Europe 4.7 Bcf/d 2005 12.3 Bcf/d 2005 NA 1.8 Bcf/d (Gp:) 2010 Liquefaction Capacity (Gp:) 2005 Consumption 5 15 25 35 45 2005 2006 2007 2008 2009 2010 36 23 24 26 30 35 B
Slide 14: North America Onshore Regasification Capacity by 2010
Everett Cove Point Elba Island Lake Charles Sabine Pass Freeport Golden Pass Cameron Costa Azúl Canaport Existing Under Construction Altamira Source: Websites of Terminal Owners, Wood Mackenzie Limited, Poten & Partners North America Onshore Regasification Capacity By 2010 15.8 Bcf/d North American
Slide 15: Constraint is not Regasification but Natural Gas Consumption
Constraint is not Regasification but Natural Gas Consumption Source: GIIGNL; Waterborne LNG, Cheniere Research Regasification is built for peak utilization because of seasonal variations
Slide 16: Contractual Trends Away from Utilities
Contractual Trends Away from Utilities 0 10 20 30 40 50 Bcf/d 2005 2006 2007 2008 2009 2010 2011 2012 Non-Utility Uncommitted Utility ~44% of 2010 LNG supply will seek premium markets Source: Estimates according to Cheniere Research
Slide 17: NYMEX vs. NBP – November 2, 2007
17 NYMEX vs. NBP – November 2, 2007 Historical Data Futures as of 11/02/07
Slide 18: Cheniere Marketing Strategy
18 1 Bcf/d by 2010 12 Bcf/d of undecided gas globally 86% of Henry Hub 94% - 65 cents (GdF transaction) Seek to capture portion of redirect rights Estimate 30 cargoes annually Title: Cheniere Marketing Strategy Term Contracts: Indexed Purchase Agreements (IPA)Spot Market: 1 Bcf/d portion Seek to cap
Slide 19: Cheniere Growth Strategy
19 Title: Cheniere Growth Strategy Body: Pursue acquisitions for Cheniere Energy Partners, L.P. (AMEX: CQP) Continue asset development: terminals and pipelines Develop a balanced supply portfolio for Cheniere Marketing between long-term IPA’s and LNG Gateway exposure to the spot, option and short-te
Slide 20: Condensed Balance Sheet
20 Title: Condensed Balance Sheet Cheniere Energy Other Cheniere Consolidated Partners, L.P. Energy, Inc. (1) Cheniere Energy, Inc. Unrestricted cash (2) - $ - 447 $ 447 $ Restricted cash and securities 885 45 930 Property, plant and equipment 1,006 393 1,399 Goodwill and other assets 71 170 241 Tot
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