Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Investor Presentation (February 2007)

21 slides from Cheniere Energy's investor presentation, February 2007

  1. Slide 1: Cheniere Energy, Inc. Corporate Presentation

    CHENIERE ENERGY, INC. *Sabine Pass LNG L.P. *Corpus Christi LNG L.P. *Creole Trail LNG L.P. *Freeport LNG L.P. Cheniere 100% Cheniere 100% Cheniere 100% Cheniere 30% Limited Partner Corporate Presentation February 2007 *Artist’s Rendition

  2. Slide 2: Safe Harbor Act

    Safe Harbor Act 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 sta

  3. Slide 3: Freeport LNG, L.P.

    Freeport LNG, L.P. Cheniere Energy, Inc. 30% L.P. interest Freeport LNG Construction Site ƒ Land – 233 acres in Brazoria County, TX ƒ Berthing/Unloading – 1 dock – LNGCs up to 265,000 cm – 3 dedicated tugs ƒ Storage – 2 x 160,000 cm (6.7 Bcfe) ƒ Vaporization – 1.5 Bcf/d ƒ Project Status – 67% comple

  4. Slide 4: Sabine Pass LNG, L.P.

    Sabine Pass LNG, L.P. Cheniere Energy 100% ƒ Land Sabine Pass Construction Site – January 2007 – 853 acres in Cameron Parish, LA ƒ Accessibility – Deep Water Ship Channel – Sabine River Channel dredged to 40 feet ƒ Proximity – 3.7 nautical miles from coast – 22.8 nautical miles from outer buoy ƒ Ber

  5. Slide 5: Corpus Christi LNG, L.P.

    Corpus Christi LNG, L.P. Cheniere Energy 100% Corpus Christi Site Preparation – October 2006 ƒ Land – 212 acres in San Patricio County, TX – ~ 400 acres of permanent easement ƒ Accessibility - Deepwater Ship Channel – La Quinta Channel dredged to 45 feet ƒ Proximity – 14.3 nautical miles from coast

  6. Slide 6: Creole Trail LNG, L.P.

    Creole Trail LNG, L.P. Cheniere Energy 100% Creole Trail Terminal ƒ Land Artist’s Rendition – 1463 Acres in Cameron Parish, LA ƒ Accessibility - Deepwater Ship Channel – Calcasieu Channel dredged to 40+ feet ƒ Proximity – 3.2 nautical miles from Coast – 30.9 nautical miles from outer buoy ƒ Berthing

  7. Slide 7: Cheniere Terminal Group

    Cheniere Terminal Group Freeport LNG L.P. – 30 % Capacity Revenue to Cheniere Sold – Terminal Use Agreement (TUA) Conoco 1.0 Bcf/d $15 Dow 0.5 Bcf/d Revenue to Cheniere @ Sabine Pass LNG – 100% Capacity $0.32 MMBtu ($MM) Sold – Terminal Use Agreement Total, S.A. 1.0 Bcf/d $126 Chevron 1.0 Bcf/d $130

  8. Slide 8: Cheniere Marketing - Potential Value of Capacity

    Cheniere Marketing - Potential Value of Capacity ƒ Availability of LNG ƒ Seasonal flows and basis differential (natural gas demand) ƒ Availability of regas capacity close to market demand 8

  9. Slide 9: Liquefaction Growth

    Liquefaction Growth Global Liquefaction Capacity Bcf/d 45 37 Bcf/d 40 35 30 25 20 15 10 5 0 2005 2006 2007 2008 2009 2010 9 Source: Wood Mackenzie, 2007

  10. Slide 10: Realignment of LNG Imports By Region

    Realignment of LNG Imports By Region LNG Trade (Bcf/d) (Bcf/d) 30 Asia Pacific 25 Europe 13 25 North America 20 8.6 18 15 10 12 12 9.6 2 5 5 0 Atlantic Pacific Atlantic Pacific Atlantic Pacific Basin Basin Basin Basin Basin Basin 2005 2010 2015 10 Source: Poten & Partners 2006

  11. Slide 11: Seasonal LNG Imports - 2010

    Seasonal LNG Imports - 2010 Bcf/d 20 10.1 10.6 15 17.9 7.2 5.6 15.7 17.3 15.2 10 9.6 9.6 8.4 7.9 5 0 Atlantic Pacific Atlantic Pacific Atlantic Pacific Atlantic Pacific Basin Basin Basin Basin Basin Basin Basin Basin Q1 Q2 Q3 Q4 Europe Asia North America 11 Source: Cheniere Research

  12. Slide 12: Contractual Trends Away from Utilities

    Contractual Trends Away from Utilities Contracted Supplies - Utility vs. Non-Utility Bcf/d 60 50 40 Uncommitted 30 Non-Utility 20 Utility 10 0 2005 2006 2007 2008 2009 2010 2011 2012 12 Source: Cheniere Research

  13. Slide 13: Contracted Volumes – Utility vs. Non-Utility

    Contracted Volumes – Utility vs. Non-Utility In BCFD 2006 2007 2008 2009 2010 Atlantic Basin Utility 5.3 5.0 5.2 5.1 5.1 Non-utility 3.1 4.1 4.1 4.1 4.0 In BCFD 2006 2007 2008 2009 2010 ME Gulf to Atlantic Utility 0.8 1.1 1.1 1.7 1.7 Non-utility 0.4 0.7 1.5 3.8 4.9 In BCFD 2006 2007 2008 2009 2010 A

  14. Slide 14: Henry Hub Premium (Discount) to NBP $/Mmbtu

    14 Henry Hub Premium (Discount) to NBP $/Mmbtu $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Historical Data Mar-99 May-99 Jul-99 Sep-99 Futures as of 9/21/06 Nov-99 Jan-00 Mar-00 US Discount to UK May-00 US

  15. Slide 15: Henry Hub Premium (Discount) to NBP $/Mmbtu

    15 Henry Hub Premium (Discount) to NBP $/Mmbtu $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 Historical Data May-99 Jul-99 Sep-99 Nov-99 Futures as of 1/31/07 Jan-00 Mar-00 May-00 Jul-00 US Discount to

  16. Slide 16: NBP / NYMEX Comparison – January 31, 2007

    NBP / NYMEX Comparison – January 31, 2007 NBP/ NYMEX Forward Comparison ($/mmcf) NYMEX NBP Spread (NYMEX-NBP) Mar-07 7.74 4.64 3.10 Apr-07 7.70 4.43 3.26 May-07 7.73 4.39 3.34 Jun-07 7.78 4.33 3.45 Jul-07 7.85 4.31 3.54 Season Strip Averages Aug-07 7.92 4.29 3.62 Summer 07 Mar-Oct Sep-07 7.97 4.45 3

  17. Slide 17: North America Onshore Regasification Capacity By 2010

    North America Onshore Regasification Capacity By 2010 Terminals Baseload Capacity Holders Sendout Canaport Canaport (MMcf/d) Canaport - Q4 2008 1,000 Irving, Repsol Everett 700 Everett Everett Suez Cove Point 1,550 BP, Statoil, Shell Cove Cove Point Point Elba Island 800 BG, Marathon, Shell Lake Cha

  18. Slide 18: Retained Capacity

    Retained Capacity ƒ Merchant activities are necessary to deal with seasonality ƒ Gulf Coast is “backstop” for merchant activities ƒ Can accommodate large quantities of baseload capacity 18

  19. Slide 19: U.S. Gulf Coast Receiving Capacity

    U.S. Gulf Coast Receiving Capacity Two Strategies 1. Long-term dedicated volumes can be redirected to premium market seasonally Example: 1 Bcf/d of baseload supply purchased at 86% of $6.00 Henry Hub with a gross margin of 10% equates to $220 million per year • Any redirection benefits are increment

  20. Slide 20: Cheniere Merchant Capacity

    Cheniere Merchant Capacity ƒ Cheniere is focused on securing 1 Bcf/d of long-term dedicated supply under “Indexed Purchase Agreements” – Up to 0.5 Bcf/d starting in 2008 – 1.0 Bcf/d starting in 2009 – When 1.0 Bcf/d is achieved, Cheniere will contemplate construction of the next terminal ƒ Cheniere

  21. Slide 21: Cheniere Portfolio - 2010

    Cheniere Portfolio - 2010 Terminal Group MM Sabine Pass $ 512 Freeport 15 527 OpEx < 40 > Debt Service < 151 > $ 336 Marketing Group Cost < $ 276 > Revenues ? Corporate < $ 75 > Note: These revenue objectives reflect numerous assumptions. Please refer to the Safe Harbor Statement on page 2 of this p

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