Cheniere Energy Partners, Lp · NYSE:CQP

Cheniere Energy Partners, Lp — Investor Presentation (March 2013)

28 slides from Cheniere Energy Partners, Lp's investor presentation, Mar 5, 2013

  1. Slide 1: Cheniere Energy March 2013

    CHENIERE = Cheniere Energy March 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: 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

  4. Slide 4: Operating Assets

    Operating Assets Sabine Pass LNG Terminal Creole Trail Pipeline 4

  5. Slide 5: 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

  6. Slide 6: Projected Global LNG Demand Growth

    Projected Global LNG Demand Growth Regional LNG Import Outlook (mmtpa)* 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 mmtpa (~40 Bcf/d) in 2015 to 511 mmtpa

  7. Slide 7: 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

  8. Slide 8: Sabine Pass LNG Terminal

    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 Liquefaction Trains 3 & 4  2 trains, each 4.5

  9. Slide 9: 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,

  10. Slide 10: Project Update

    Project Update  Trains 1&2 fully financed & under construction, LSTK with Bechtel • Total EPC contract price ~$3.97 billion • Trains 1&2 construction started August 2012 • Bechtel is ahead of schedule – expect operations by 1Q 2016 • Full $1.89 billion of equity capital has been contributed to SPL

  11. Slide 11: 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

  12. Slide 12: 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) BG SPA (286.5 million MMBtu / yr) Gas Natural SPA (182.5 million MMBtu / yr) KOGAS SPA (182.5 million MMBtu / yr) GAIL SPA (182.5 million MMBtu / yr) To

  13. Slide 13: 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 mmtpa 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 maxim

  14. Slide 14: Corpus Christi Liquefaction Project

    Corpus Christi Liquefaction Project Proposed Facility  > 1,000 acres owned and/or controlled near Corpus Christi, TX  3 trains, each 4.5 mmtpa nameplate capacity  2 berths  3 LNG storage tanks (~10.1 Bcfe of storage)  ConocoPhillips’ Optimized Cascade® Process Key Project Attributes  Marine en

  15. Slide 15: Timeline & Milestones

    Timeline & Milestones  Initiate permitting process (FERC & DOE)  Commercial agreements TBD 2H13  EPC contract TBD 2H13  Financing commitments 1H13 TBD 1H14  Regulatory approvals TBD 1H14  Commence construction 2013 TBD 1H14  Commence operations (1) 2016/17 TBD 2017 Milestone Corpus Christi (1

  16. Slide 16: Appendix

    CHENIERE = Appendix

  17. Slide 17: Construction Completion Schedules Trains 1-4

    2012 2013 2014 2015 2016 2017 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Guaranteed Accelerated Guaranteed Accelerated Early

  18. Slide 18: 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

  19. Slide 19: Regulatory Approvals

     • 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

  20. Slide 20: 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 inbound flow One new compressor station with three new units Two new meter stations Modify existing

  21. Slide 21: Global LNG Demand

    Global LNG Demand 2012 Global LNG Capacity: ~37.3 Bcf/d Natural Gas Oil Products LNG Importers - Price Indexation Japan Crude Cocktail 2012 Global LNG Demand: ~31.5 Bcf/d No r th Ame r ica S outh Ame r ica E u r ope A sia 6.5 1.4 1.1 22 A ust r alia - 3.3 B r unei - 1.0 Indonesia - 4.6 M al a y sia

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: Pro Forma CQP Ownership

    Pro Forma CQP Ownership Common units Class B units Subordinated units General partner @ 2% 45.1 12.0 33.3 135.4 6.6 Public CEI 45.1 187.3 (in millions) 57.1 133.3 135.4 6.6 332.4 Total 56.4% 13.6% 100% Percent of total (as of 3/1/13) - - - Blackstone 30.0% 100.0 - - - 100.0  Reflects $2B equity iss

  26. Slide 26: 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

  27. Slide 27: Slide 27

  28. Slide 28: 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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