Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (June 2010)
15 slides from Cheniere Energy's investor presentation, Jun 4, 2010
Slide 1: Proposed Sabine Pass LNG Facility Expansion - Adding Liquefaction Capabilities
Cheniere Energy Partners / Cheniere Energy, Inc. Proposed Sabine Pass LNG Facility Expansion - Adding Liquefaction Capabilities June 4, 2010
Slide 2: Forward Looking Statements
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 1933, as amended. All statements, other than statements of
Slide 3: Expanding Operations - Adding Liquefaction
Expanding Operations - Adding Liquefaction Compelling Proposition Sabine Pass to become bi-directional import/export facility § Market fundamentals create opportunity to expand into exports § Export services provide customers with an attractively priced option to access U.S. natural gas supply § Sab
Slide 4: Market Fundamentals Drive Liquefaction Project
Market Fundamentals Drive Liquefaction Project § The U.S. has become the largest producer of natural gas in the world and production costs rank among the lowest – Productive capacity at $6.50/MMBtu could reach 95 Bcf/d by 2020 § U.S. natural gas demand not likely to keep pace with incremental supply
Slide 5: U.S. Unconventional Reserves
U.S. Unconventional Reserves Basins Proximate to Premium Markets and Major Pipelines 1,167 Tcf 366 Tcf US Proved Reserves Sources: EIA (US map graphic, pipelines and LNG terminals placed by Cheniere) Advanced Resources Intl (Lower 48 Unconventional Recoverable Reserves), ARI shale estimates updated
Slide 6: Sabine Pass LNG: Proposed Liquefaction Project Overview
Sabine Pass LNG Proposed Liquefaction Project - Overview § Leveraging existing assets – Large acreage position (853 acres) • Can readily accommodate 4 liquefaction trains (up to 2 Bcf/d capacity) – Existing infrastructure • 2 docks, 4 dedicated tugs • LNG storage tanks (5 x 160,000 cm) • Power gener
Slide 7: Low Cost Liquefaction Facilities
Low Cost Liquefaction Facilities Proven Technology ConocoPhillips-Bechtel - Global Liquefaction Collaboration Cost 450 400 350 300 250 200 150 100 50 0 Qatargas Nigeria RasGas ELNGT1 Oman ALNGT1 ALNGT1-3 ELNGT1-2 $/Ton per Annum ConocoPhillips-Bechtel trains Source: ConocoPhillips- Bechtel
Slide 8: Commercial Structure
Commercial Structure Estimated Terms for LNG Sales Agreements Capacity fee includes regasification and liquefaction services - provides customer option to import or export Estimated cost to purchase U.S. supply: Ê Capacity Fee: $1.40/MMBtu to $1.75/MMBtu § “Take or Pay”, permits lifting or unloading
Slide 9: LNG Supply: Oil Linkage Threatened with Large Oil-Gas Ratios
LNG Supply Oil Linkage Threatened with Large Oil-Gas Ratios § Asian and European natural gas supplies are predominantly priced against oil indices – Europe dominated by oil-indexed pricing with an emerging but small portion tied to spot pricing – With decreasing supplies, market prices expected to a
Slide 10: Delivered Costs Compare Favorably to European Price Estimates
Delivered Costs Compare Favorably to European Price Estimates § Assuming continued increase in U.S. natural gas production, unconventional gas economics effectively cap Henry Hub at mid-range of $6.50/MMBtu § If oil remains above $65/Bbl, Sabine Pass LNG is cheaper than oil-indexed pipeline gas in E
Slide 11: Regulatory Process
Regulatory Process Strong support from local and state agencies § Dual regulatory tracks with the DOE and FERC – DOE regulates imports and exports of natural gas – FERC coordinates federal and state review of proposals to build LNG terminals § Key regulatory and legislative issues – NEPA empowers FE
Slide 12: Key Relationships
Key Relationships § Preliminary favorable indications of market interest – LNG and natural gas buyers – LNG and natural gas sellers / producers – Contractors
Slide 13: Organizational Structure
Organizational Structure NYSE Amex US: LNG $205 mm 2.25% Convertible Senior Unsecured Notes due 2012 100% Ownership Interest $298 mm 9.75% Term Loan due 2012 Cheniere LNG Holdings, LLC $302 mm 12.0% Convertible Senior Secured Notes due 2018 88.6% LP Interest 100% of 2% GP Interest NYSE Amex US: CQP
Slide 14: Q&A
Q&A CHENIERE were
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