Cheniere Energy Partners, Lp · NYSE:CQP

Cheniere Energy Partners, Lp — J.P. Morgan Global High Yield & Leveraged Credit Conference 2013

30 slides from Cheniere Energy Partners, Lp's conference presentation, Feb 25, 2013

  1. Slide 1: Cheniere Energy J.P. Morgan Global High Yield & Leveraged Credit Conference 2013

    Cheniere Energy J.P. Morgan Global High Yield & Leveraged Credit Conference 2013

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements 2 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 of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended”. All statements, o

  3. Slide 3: Projected Global LNG Demand Growth

    Projected Global LNG Demand Growth 3 Regional LNG Import Outlook (mtpa)* Source: Facts Global Energy 18 20 19 2015 2020 2030 2015 2020 2030 6 14 30 2015 2020 2030 2015 2020 2030 Americas Europe Asia Middle East *Base-case scenario 192 242 310 87 123 152 From 303 mtpa (~40 Bcf/d) in 2015 to 511 mtpa

  4. Slide 4: Sabine Pass LNG Terminal Trains 1-2 Under Construction; Trains 3-4 EPC Obtained

    Sabine Pass LNG Terminal Trains 1-2 Under Construction; Trains 3-4 EPC Obtained Significant infrastructure in place including storage, marine and pipeline interconnection facilities; pipeline quality natural gas to be sourced from U.S. pipeline network 4 Liquefaction Trains 3 & 4  2 trains, each 4.

  5. Slide 5: LNG Sale and Purchase Agreements (SPAs)

    LNG Sale and Purchase Agreements (SPAs) (1) Conditions precedent must be satisfied by December 31, 2013 for KOGAS and GAIL (India) Ltd. or either party can terminate. CPs include financing, regulatory approvals and positive final investment decision. (2) A portion of the fee is subject to inflation,

  6. Slide 6: SPL Estimated Cash Flows Trains 1-4

    SPL Estimated Cash Flows Trains 1-4 Total Revenues Trains 1-2 BG Gas Natural KOGAS GAIL Commodity payments, net (1) O&M, gas procurement & other SPLNG TUA Pipeline Costs 520 455 - - 125 1,100 (160) (140) (80) (380) EBITDA (2) 725 455 550 550 275 2,555 (270) (285) (160) (715) $ 1,840 $ 720 $ $ ($ in

  7. Slide 7: Trains 1&2 Financing

    Trains 1&2 Financing Trains 1&2 Financing Sources Uses Bank Credit Facility 2,299 $ Capex, allowancies and contingencies 4,929 $ Equity contribution (1) 1,934 Operating cash flow 255 Up-front fees and expenses 248 Total Sources 5,988 $ Total Uses 5,998 $ ($ in millions) 7 (1) Includes $44MM contribu

  8. Slide 8: Summary Organizational Structure

    Summary Organizational Structure Cheniere Energy, Inc. (NYSE MKT: LNG) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Sabine Pass LNG, L.P. (SPLNG)  59.5% Cheniere Inc.  31.8% Blackstone  8.7%Public BG SPA (286.5 million MMBtu / yr) Gas Natural SPA (182.5 million MMBtu / yr) KOGAS SPA (182.5 mill

  9. Slide 9: Future Developments/Opportunities

    Sabine Pass Liquefaction Facilities  Trains 5 and 6 – initiating permitting process Future Developments/Opportunities Cheniere Marketing  2.0 mtpa LNG to be sold from SPL  FOB and DES basis Corpus Christi LNG Exports – 13.5 mtpa project  Under development – in permitting stage 9

  10. Slide 10: Sabine Pass Liquefaction Project Trains 5&6 – Status Update

    Sabine Pass Liquefaction Project Trains 5&6 – Status Update 10 Annual Contract Quantity (MMBtu) Fixed Fees $/MMBtu (2) Annual Fixed Fees Term (3) Guarantor Guarantor/Corporate Credit Rating (4) Fee During Force Majeure Contract Start Date ~$314 MM 20 years Aa1/AA N/A Total S.A. Train 5 $3.00 104,750

  11. Slide 11: CMI SPA – Excess Volumes from Trains 1-4 at SPL

    CMI SPA – Excess Volumes from Trains 1-4 at SPL  CMI-SPL SPA provides CMI with up to 2 mtpa of LNG delivered FOB Sabine Pass starting with the initial production from Train 1 •Maximum Annual Contract Quantity of up to 104 Tbtu/year from first four trains  SPA sharing mechanic incents profit maximi

  12. Slide 12: EPC Contracting Strategy: LSTK with Bechtel

    1 2 3  EPC Contracting Strategy: LSTK with Bechtel  Three 4.5 mtpa nameplate liquefaction trains  ConocoPhillips’ Optimized Cascade® Process Corpus Christi Liquefaction Project 13.5 mtpa Nameplate Plant (~1.8 Bcf/d of exports) 12  GE LM2500+ G4 gas turbine driven refrigerant compressors  Three

  13. Slide 13: Timeline & Milestones

    Timeline & Milestones  Initiate permitting process (FERC & DOE)  Commercial agreements 3Q13  EPC contract 4Q13  Financing commitments 1H13 1Q14  Regulatory approvals 1Q14  Commence construction 2013 1Q14  Commence operations (1) 2016/17 2017 Milestone Corpus Christi (1) Each LNG train to comm

  14. Slide 14: Slide 14

  15. Slide 15: Appendix

    CHENIERE = Appendix

  16. Slide 16: Summary Organizational Structure

    2.0% Interest & Incentive Dist. Rights Cheniere Energy, Inc. (NYSE MKT: LNG) Sabine Pass LNG, L.P. (“SPLNG”) Sabine Pass Liquefaction, LLC (“SPL”) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Cheniere Creole Trail Pipeline, L.P. Corpus Christi Liquefaction, LLC Cheniere Marketing, LLC (“CMI”) Chen

  17. Slide 17: Key Credit Highlights

    Key Credit Highlights Strong LNG market fundamentals Strategic location; brownfield development U.S. Gulf Coast region is a highly liquid natural gas market  Strategically located near prolific natural gas basins and connected to the North American pipeline network by three large interstate pipeli

  18. Slide 18: EPC Contracts Signed for Trains 1-4

    EPC Contracts Signed for Trains 1-4  EPC Contract costs: • Trains 1-2 EPC Contract cost is $3.97B • Trains 3-4 EPC Contract cost is $3.77B • Cost overruns are borne by the EPC Contractor per the lump-sum turnkey nature of the contract Sabine Pass Liquefaction entered into two LSTK EPC contracts wit

  19. Slide 19: Why Bechtel

    Why Bechtel  Constructed one-third of the world’s liquefaction facilities - more than any other contractor  Top US construction contractor for 14 straight years by Engineering News-Record  Bechtel was the EPC contractor for the regasification project at the Sabine Pass LNG Terminal, which was con

  20. Slide 20: Construction Completion Schedules Trains 1-4

    Construction Completion Schedules Trains 1-4 20 Note: See “Forward Looking Statements” slide. 2012 2013 2014 2015 2016 2017 2018 BG DFCD GN DFCD KOGAS DFCD GAIL DFCD Train 1 Train 2 Train 3 Train 4 SPA CP Fulfillment Deadline Accelerated Target – First LNG Record First LNG – Egyptian LNG T1  Curren

  21. Slide 21: Regulatory Approvals Received for 4 Trains

     • NEPA Pre-filing 7/2010 for Expansion • Formal Application Filed Jan 31, 2011 • Title V Air Permit received Dec 6, 2011 • Environmental Assessment published Dec 28, 2011 • US Army Corp of Engineers permit received Mar 15, 2012 • Final approval obtained April 2012  • Filed Two Applications in 8/2

  22. Slide 22: Regional Natural Gas & LNG Prices

    0 2 4 6 8 10 12 14 16 18 20 F e b -0 8 F e b -0 9 F e b -1 0 F e b -1 1 F e b -1 2 F e b -1 3 $/MMBtu Regional Natural Gas & LNG Prices As of February 19, 2013 NBP IFERC HH Monthly Japan avg LNG European Gas Contract Estimated Prices Henry Hub: $4.00 / MMBtu Brent Crude: $100 / Barrel ($/MMBtu) Amer

  23. Slide 23: U.S. Natural Gas Markets

    US Gas Consumptions vs. Production US Proved Non-Producing Reserves Productive Capacity from Unconventional Reservoirs Tcf Bcf/d MMB/d  Current market fundamentals in the U.S. – increased production, increased natural gas reserves and lackluster increase in natural gas demand – have created an oppo

  24. Slide 24: Primary Gas Sources for Sabine Pass Liquefaction

    Montana Thrust Belt Cody Gammon Hilliard Baxter- Mancos Greater Green River Basin Forest City Basin Pierre Illinois Basin Piceance Basin Lewis San Juan Basin Raton Basin Anadarko Basin PaloDuro Basin Permian Basin Barnett Woodford Pearsall Eagle Ford Rio Grande Embayment Barnett Woodford Michigan Ba

  25. Slide 25: Local Pipeline Interconnections

    Local Pipeline Interconnections Targa Columbia Gulf Tennessee Cheniere Creole Trail Pipeline Trunkline Kinder Morgan Louisiana Pipeline NGPL Texas to Louisiana (bi-directional) Transco TETCO Tennessee FGT SW Lateral (Trn, TN, FGT) Existing Pipeline Grid Transco Z3 Sabine Pine Prairie Energy Center E

  26. Slide 26: Creole Trail Pipeline

    Current Facility Delivery from SPLNG: 2.0 Bcf/d Diameter: 42-inch; Length: 94 miles  Interconnects: NGPL, Transco, TGPL, FGT, Bridgeline, Tetco, Trunkline Pipeline Modifications Reconfigure for bi-directional flow One new compressor station with three new units Two new meter stations Modify e

  27. Slide 27: Contracted Capacity at SPLNG

    Contracted Capacity at SPLNG Third Party Terminal Use Agreements (TUAs) Long-term, 20 year “take-or-pay” style commercial contracts Total Gas & Power N.A. Chevron U.S.A. Inc. Capacity 1.0 Bcf/d 1.0 Bcf/d Fees (1) Reservation Fee (2) $0.28/MMBTU $0.28/MMBTU Opex Fee (3) $0.04/MMBTU $0.04/MMBTU 2011 F

  28. Slide 28: Pro Forma CQP Ownership

    Pro Forma CQP Ownership Common units Class B units Subordinated units General partner @ 2% 27.5 12.0 33.3 135.4 6.3 Public CEI 27.5 187.0 (in millions) 39.5 133.3 135.4 6.3 314.5 Total 59.5% 8.7% 100% Percent of total - - - Blackstone 31.8% 100.0 - - - 100.0  Reflects $2B equity issuance of Class B

  29. Slide 29: Condensed Balance Sheets

    Condensed Balance Sheets As of December 31, 2012 (1) Includes intercompany eliminations and reclassifications. (2) For complete balance sheets, see the Cheniere Energy, Inc., Cheniere Energy Partners, L.P and Sabine Pass LNG, L.P. Annual Report on Form 10-K for the year ended December 31, 2012, file

  30. Slide 30: Investor Relations Contacts

    Nancy Bui: Director, Investor Relations – (713) 375-5280, nancy.bui@cheniere.com Christina Burke: Manager, Investor Relations – (713) 375-5104, christina.burke@cheniere.com Investor Relations Contacts:

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