Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (March 2008)
30 slides from Cheniere Energy's investor presentation, Mar 14, 2008
Slide 1: Cheniere Corporate Presentation
CHENIERE Corporate Presentation
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: Cheniere Marketing, Asset Development and Partnership Interests
Cheniere Marketing Asset Development Partnership Interests Cheniere Energy Partners (AMEX: CQP) 91% Freeport LNG (1.5 Bcf/d Terminal) 30% Sabine Pass LNG (4.0 Bcf/d Terminal) Southern Trail Pipeline (1) (Proposed) Creole Trail Pipeline Under construction; estimated construction costs ~ $550 million;
Slide 4: Freeport LNG Development, L.P.
Freeport LNG Development, L.P. Cheniere Energy, Inc. 30% Freeport LNG Construction Site August 2007 TUA Contracts totaling 1.55 Bcf/d Conoco 0.90 Bcf/d Dow 0.50 Bcf/d Mitsubishi 0.15 Bcf/d Operational in 2008 Facility ownership: Cheniere (30%), M. Smith (45%), Contango (10%) and Dow (15%) Contango r
Slide 5: Cheniere Energy Partners, L.P. (AMEX: CQP) Sabine Pass LNG
Cheniere Energy Partners, L.P. (AMEX: CQP) abine Pass LNG, L.P. Cheniere Energy, Inc. 90.6% Sabine Pass Construction Site – March 2008 4 Bcf/d capacity contracted at Sabine Pass facility resulting in annual revenues of approximately: ~$250 MM from CVX and Total ~$250 MM from Cheniere Marketing Opera
Slide 6: Creole Trail Pipeline
Creole Trail Pipeline Creole Trail Pipeline Construction Photos Nov 2007 Creole Trail Pipeline to M.P. 58 - Estimated Cost: $550 MM - Expected in-service: 2Q 2008 - Capacity: 2 Bcf/d Potential Pipeline Interconnects: Gulf coast Markets Northeast markets southeast Markets Midwest / Great Lakes Market
Slide 7: Next Generation of Terminals
Next Generation of Terminals Including Some Terminals Under Construction Higher construction costs: ~ $1 billion for 1 Bcf/d Utilization constraints Operational Marine access Pipeline takeaway Storage Market size and access Affects regional price basis Seasonality $0.32 per MMBtu TUA is a thing of t
Slide 8: Fuel Efficiency Projects
Fuel Efficiency Projects : Projects include installation of waste heat recovery units and ambient air vaporizers Waste heat recovery utilizes waste heat from gas turbine generator exhaust to heat water for use in the submerged combustion vaporizers Ambient air vaporizers reheat LNG without using fue
Slide 9: Southern Trail Pipeline
Length: ~ 350 miles Diameter: Up to 42-inch segments Completed non-binding open season Pending Final Investment Decision : Southern Trail Pipeline Provide Southeast markets with incremental transportation capacity accessing new and existing LNG gas supply in and around Louisiana; nearly 10 Bcf/d reg
Slide 10: North America Onshore Regasification Capacity By 2010
Terminal Capacity Holder Baseload Sendout (MMcf/d) 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
Slide 11: LNG Fundamentals
LNG Fundamentals
Slide 12: 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 36 23 24 26 30 35 Bcf/d Liquefaction Capacity Exi
Slide 13: Estimated Worldwide Liquefaction Capacity and LNG Consumption - 2010
Estimated Worldwide Liquefaction Capacity and LNG Consumption - 2010 Global Liquefaction Capacity (Bcf/d) 36 Estimated LNG Delivery @ 90% 32 Asian Consumption <~16> European Consumption <~ 6> Remaining for North America ~10 Source: Cheniere Research
Slide 14: Constraint is not Regasification but Natural Gas Consumption
Constraint is not Regasification but Natural Gas Consumption Source: GIIGNL; Waterborne LNG; Cheniere Research Regasification capacity reflects seasonal variations Bcf/d Asia Europe North America 1. Average LNG imports 2. Year-end capacity 3. Average LNG imports as percentage of year-end capacity *
Slide 15: Demand Seasonality will Impact Flows
Demand Seasonality will Impact Flows Source: IEA 2006 Demand 0 5 10 15 20 25 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Belgium Spain France UK US GC Bcf/d 15
Slide 16: Pipeline Competition in Europe and Transatlantic LNG
and Pipeline Competition in Europe . . . Transatlantic LNG Deep and liquid market with large storage and summer peak demand will balance global LNG supply Pipeline gas supply into Europe will compete to push LNG to higher value markets. New Pipeline Existing Pipeline Expansion
Slide 17: More LNG is Becoming Flexible
1.5 1.5 1.5 1.5 1.8 1.8 1.8 1.6 0.5 0.5 0.5 0.5 2.0 2.0 2.0 2.0 0.4 0.4 0.4 0.4 1.3 2.3 4.9 0.2 0.2 0.2 0.3 9.2 11.7 7.9 6.6 - 2 4 6 8 10 12 2007 2008 2009 2010 Bcf/d Nigeria Yemen Qatar Oman Abu Dhabi Trinidad Norway Eq. Guinea Egypt Algeria : . . . Means More LNG is Becoming Flexible Flexible LNG
Slide 18: NYMEX vs. NBP – March 10, 2008
NYMEX vs. NBP – March 10, 2008 Historical Data Futures as of 3/10/08 Henry Hub Index minus National Balancing Point Index ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 1/1/2001 3/1/2001 5/1/2001 7/1/2001 9/1/2001 11/1/2001 1/1/2002 3/1/2002 5/1/2002
Slide 19: NYMEX vs. NBP – August 6, 2007
NYMEX vs. NBP – August 6, 2007 Historical Data Futures as of 08/06/07 Henry Hub Index minus National Balancing Point Index ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Jan-01 Mar-01 May-01 Jul-01 Sep-01 Nov-01 Jan-02 Mar-02 May-02 Jul-02 Sep-02 Nov-
Slide 20: NYMEX vs. NBP – January 16, 2007
NYMEX vs. NBP – January 16, 2007 Historical Data Futures as of 1/16/07 Henry Hub Index minus National Balancing Point Index ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan
Slide 21: NYMEX vs NBP - September 21, 2006
NYMEX vs NBP - September 21, 2006 (Gp:) Historical Data Futures as of 9/21/06 Henry Hub Index minus National Balancing Point Index ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov
Slide 22: European Storage: 2007 vs 5yr Avg
European Storage: 2007 vs 5yr Avg * Figures represent PIRA’s projections 0 10 20 30 40 50 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcm 5 yr Avg 2007 Total 22
Slide 23: European Gas Storage Inventory
307 73% 143 72% 196 64% 101 67% 204 66% 241 65% : European Gas Storage Inventory - Bcf Inventory as of Jan 14, 2008 Source: GSE 1/14/08 23
Slide 24: Worldwide Liquefaction Capacity
Worldwide Liquefaction Capacity Source: GIIGNL; Poten, Cheniere Research 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2004 2005 2006 Bcf/d 24
Slide 25: Worldwide Liquefaction Capacity - Growth
Worldwide Liquefaction Capacity - Growth - 5 10 15 20 25 30 35 40 45 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 2006 2007 2008 2009 2010 Bcf/d Source: Cheniere Research + 10 Bcf/d 25
Slide 26: Worldwide Liquefaction Utilization
Worldwide Liquefaction Utilization Source: Poten, Cheniere Research 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2004 2005 2006
Slide 27: Europe – Total LNG Imports
Europe – Total LNG Imports Source: Poten, Cheniere Research 0 1 2 3 4 5 6 7 8 9 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2006 Total 2005 Total 27
Slide 28: Asia – Total LNG Imports
Asia – Total LNG Imports Source: Poten, Cheniere Research 0 2 4 6 8 10 12 14 16 18 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2006 2005 28
Slide 29: North America – Total LNG Imports
North America – Total LNG Imports Source: Poten, Cheniere Research 0 1 2 3 4 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2007 2006 2005 29
Slide 30: Condensed Balance Sheet
Condensed Balance Sheet Cheniere Energy Other Cheniere Consolidated Partners, L.P. Energy, Inc. (1) Cheniere Energy, Inc. (3) Unrestricted cash (2) - $ - 297 $ 297 $ Restricted cash and securities 709 61 770 Property, plant and equipment 1,127 518 1,645 Goodwill and other assets 69 181 250 Total ass