Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (January 2005)
18 slides from Cheniere Energy's investor presentation, Jan 4, 2005
Slide 1: Cheniere Energy, Inc. Corporate Presentation
Cheniere Energy, Inc. Corporate Presentation January 2005 *Artist’s Rendition *Creole Trail LNG L.P. (Cheniere 100%) *Corpus Christi LNG L.P. (Cheniere G.P. & 67% L.P.) *Sabine Pass LNG L.P. (Cheniere 100%) *Freeport LNG L.P. (Cheniere 30% Limited Partner)
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) Cheniere estimate based on 2% annual average decline in production, 1% annual average growth in consumption post-2008 8 Tcf Forecast Historical Production Consumption
Slide 4: Domestic Production
Domestic Production Source: IHS Energy US Lower 48 Dry Gas Production Forecast $6/Mcf (89% Rig Utilization) $5/Mcf (83% Rig Utilization) $4/Mcf (77% Rig Utilization) $3/Mcf (71% Rig Utilization) Bcf/d Estimate ------------------------------------------------- > Bcm/d 1.48 1.42 1.37 1.31 1.26 1.14 1.
Slide 5: Gulf of Mexico Production
Gulf of Mexico Production Shallow Water GoM 9.0 Bcf/d Deep Water GoM 3.7 Bcf/d Source: PIRA, 2004 2003 Total U.S. Production = 52 Bcf/d Onshore Gulf 12.71 Bcf/d
Slide 6: Supplies Ample Existing & Committed LNG Capacity
Supplies Ample Existing & Committed LNG Capacity 2010 14.2 Bcf/d 12.5 Bcf/d 14.5 Bcf/d 30.5 17.1 12.9 41.2 Asia Pacific ME Gulf Atlantic Basin Liquefaction Growth 1997 2003 2010 2008 Source: GIIGNL, Cheniere Research 2003 LNG Consumption Asia – 11 Bcf/d Europe – 4 Bcf/d Americas – 2 Bcf/d
Slide 7: Shipping
Shipping Committed Shipping Investment over $13 Billion by 2008 Source: *Poten & Partners July 2004 World Fleet* Increasing number of ships uncommitted to a trade 1995 2001 2003 2008
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 14 - 18
Slide 9: US LNG Import Facilities
US LNG Import Facilities - Everett Closed Access - Tractebel Cove Pt. Fully-reserved - BP, Statoil & Shell Elba Island Fully-reserved - BG, Marathon Lake Charles Fully-reserved - BG Existing 2.5 Bcf/d Expanded 5.0 Bcf/d Source: EIA, FERC, Cheniere Research
Slide 10: Coastal States Gas Consumption
Coastal States Gas Consumption 1.0 1.7 0.9 0.8 1.1 0.5 0.6 0.2 0.5 0.6 0.7 Top 5 Coastal Consumers TX, CA, LA, NY, FLA Source: EIA, NG Monthly, April 2004 In Bcf/d 2002 10.8 3.2 1.8 6.1 3.2
Slide 11: Into Chicago
Source: EIAGIS-Natural Gas Annual, 2001 US Gas Flows - 2001 Source: EIA Into Chicago Area Hub Canada to MW From Gulf Coast Production Canada to NE Into NY Metro Area Into Boston Metro Area 5.8 Bcf/d 0.5 Bcf/d 0.8 Bcf/d 1.8 Bcf/d 7.2 Bcf/d 19 Bcf/d
Slide 12: U.S. Regasification Terminal Locations 2010
U.S. Regasification Terminal Locations 2010 Existing Facilities New Terminals Cheniere Expectation
Slide 13: Cheniere LNG Receipt Network
4 Deepwater Ports 7 Unloading Docks 12 Storage Tanks (40 Bcf equivalent) 10 Bcf/d Sendout Cheniere LNG Receipt Network Optionality Flexibility Reliability Liquidity Low Cost Creole Trail Corpus Christi Freeport LNG L.P. Sabine Pass
Slide 14: Project Overviews
Project Overviews Land Estimated Ground Breaking Storage Capacity Capex* Tanks Creole Trail Berths Initial Capacity Corpus Christi Sabine Pass Freeport LNG** NEPA Pre-filing Start Jan 2005 Expected Q2 2005 December 2004 June 2004 FERC Permit 1463 acres 610 acres 568 acres 233 acres Q3 2006 Q3 2005 Q
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
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
Slide 18: Target Gas Demand Corridor Market Access
Target Gas Demand Corridor Market Access – 29 Bcf/d Cheniere LNG Receipt Network Source: Cheniere Research Mexican Markets 1.7 Bcf/d Gulf Coast Markets 4.9 Bcfd Southeast Markets 4.6 Bcfd Northeast Markets 5.7 Bcfd Midwest Markets 11.8 Bcfd
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