Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (January 2005)
18 slides from Cheniere Energy's investor presentation, January 2005
Slide 1: Cheniere Energy, Inc. Corporate Presentation
Cheniere Energy, Inc. *Freeport LNG L.P. (Cheniere 30% Limited Partner) *Corpus Christi LNG L.P. (Cheniere G.P. & 67% L.P.) *Sabine Pass LNG L.P. (Cheniere 100%) *Creole Trail LNG L.P. (Cheniere 100%) Corporate Presentation *Artist’s Rendition January 2005
Slide 2: Safe Harbor Act
Safe Harbor Act Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain information in this presentation are forward looking statements that are based on management's belief, as well as assumptions made by, and information currently available to management. Whil
Slide 3: Production vs Consumption (Tcf)
Production vs Consumption (Tcf) 30 Historical Forecast 25 20 Trillion cubic feet 8 Tcf 15 10 5 0 85 88 91 94 97 00 03 06 09 15 18 21 24 12 19 19 19 19 19 20 20 20 20 20 20 20 20 Production 20 Consumption Cheniere estimate based on 2% annual average decline in production, 1% annual average growth in
Slide 4: Domestic Production
Domestic Production Bcf/d US Lower 48 Dry Gas Production Forecast Bcm/d 53 1.48 51 Estimate ------------------------------------------------- > 1.42 49 1.37 47 1.31 45 $5.00 @ 2010 1.26 43 40 Bcf/d 1.20 41 1.14 39 1.09 $6/Mcf (89% Rig Utilization) 37 1.03 $5/Mcf (83% Rig Utilization) 35 $4/Mcf (77%
Slide 5: Gulf of Mexico Production
Gulf of Mexico Production 2003 Total U.S. Production = 52 Bcf/d Onshore Onshore Gulf Gulf 12.71 12.71 Bcf/d Bcf/d Shallow Shallow Water Water GoM GoM 9.0 9.0 Bcf/d Bcf/d Deep Deep Water Water GoM GoM 3.7 Bcf/d 3.7 Bcf/d 5 Source: PIRA, 2004
Slide 6: Supplies Ample
Supplies Ample Existing & Committed LNG Capacity 2010 ME Asia Asia Pacific Pacific ME Gulf Gulf 14.2 12.5 Bcf/d 14.2 Bcf/d Bcf/d 12.5 Bcf/d Atlantic Atlantic Basin Basin 14.5 Bcf/d 14.5 Bcf/d 2003 2003 LNG LNG Consumption Consumption Asia Asia –– 11 11 Bcf/d Bcf/d Europe Europe –– 44 Bcf/d Bcf/d Ame
Slide 7: Shipping
Shipping Committed Shipping Investment over $13 Billion by 2008 Increasing number of ships uncommitted to a trade World Fleet* 1995 93 2001 128 2003 152 2008 244 + Source: *Poten & Partners July 2004 7
Slide 8: Status of Industry
Status of Industry In the next three years: Liquefaction growth of 13.4 Bcf/d represents 78% increase over next 3 years Shipping growth of 92 vessels represents 60% increase over next 3 years The supply - demand gap in the US continues to make this market the prime target for LNG producers - 1
Slide 9: US LNG Import Facilities
US LNG Import Facilities Everett Everett Closed Closed Access Access -- Tractebel Tractebel Existing 2.5 Bcf/d Cove Cove Pt. Pt. Fully-reserved Fully-reserved Expanded 5.0 Bcf/d -- BP, BP, Statoil Statoil & & Shell Shell Elba Elba Island Island Fully-reserved Fully-reserved -- BG, BG, Marathon Marat
Slide 10: Coastal States Gas Consumption
Coastal States Gas Consumption 2002 0.6 0.2 0.5 3.2 3.2 1.1 1.7 0.7 6.1 0.6 0.5 0.8 0.9 1.0 In Bcf/d 3.2 3.2 10.8 Top 5 Coastal Consumers TX, CA, LA, NY, FLA 1.8 1.8 Source: EIA, NG Monthly, April 2004 10
Slide 11: US Gas Flows - 2001
US Gas Flows - 2001 Canada to MW Into Chicago Area Hub 5.8 Bcf/d Canada to NE 0.5 Bcf/d Into Boston 0.8 Bcf/d 7.2 Bcf/d Metro Area Into NY 1.8 Bcf/d Metro Area 19 Bcf/d From Gulf Coast Source: EIAGIS-Natural Gas Annual, 2001 Production 11 11 Source: EIA
Slide 12: U.S. Regasification Terminal Locations
U.S. Regasification Terminal Locations 2010 Existing Facilities New Terminals Cheniere Expectation 12
Slide 13: Cheniere LNG Receipt Network
Cheniere LNG Receipt Network • 4 Deepwater Ports • 7 Unloading Docks • 12 Storage Tanks (40 Bcf equivalent) • 10 Bcf/d Sendout Creole Trail • Optionality Sabine Pass • Flexibility Freeport LNG L.P. • Reliability Corpus Christi • Liquidity • Low Cost
Slide 14: Project Overviews
Project Overviews Freeport LNG** Sabine Pass Corpus Christi Creole Trail $650 – $750 $750 – $850 $650 - $750 $850 - $950 Capex* million million million million Initial Capacity 1.5 Bcf/d 2.6 Bcf/d 2.6 Bcf/d 3.3 Bcf/d Storage Capacity 6.7 Bcfe 10.1 Bcfe 10.1 Bcfe 13.5 Bcfe Berths 1 dock 2 docks 2 doc
Slide 15: Terminal Capacity Sales & Cheniere Financial Impact
Terminal Capacity Sales & Cheniere Financial Impact Total Retained Long-term Tariff *Calculated TUA Capacity Capacity TUAs Rate Revenues to Cheniere Status (Bcf/d) (Bcf/d) (Bcf/d) ($/Mmbtu) ($MM) Freeport LNG L.P. (Cheniere 30% Limited Partner) ConocoPhillips Contracted - 1.0 Dow Chemical Contracted
Slide 16: Low Risk Base Business
Low Risk Base Business Provider of service for fees Conventional, proved technology Anchor customer strategy – Large customers: 500 MMcf/d - 1 Bcf/d each – Credit-worthy – Long-term commitments – take or pay – Covers facility costs, debt service, reasonable equity return 16
Slide 17: Cheniere's Competitive Advantage
Cheniere’s Competitive Advantage Early mover = prime real estate Low cost supplier of LNG regas capacity – Local support – Size of sites – Economies of scale – Existing technology Transparency: $0.32/MMbtu Flexibility – Logistics – Marketing 17
Slide 18: Target Gas Demand Corridor
Target Gas Demand Corridor Market Access – 29 Bcf/d Northeast Northeast Midwest Midwest Markets Markets Markets Markets 5.7 5.7 Bcfd Bcfd 11.8 11.8 Bcfd Bcfd Southeast Southeast Gulf Gulf Coast Coast Markets Markets Markets Markets 4.6 4.6 Bcfd Bcfd 4.9 4.9 Bcfd Bcfd Mexican Mexican Markets Markets
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