Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (September 2006)
25 slides from Cheniere Energy's investor presentation, Sep 28, 2006
Slide 1: Corporate Presentation September 2006
Corporate Presentation September 2006 CHENIERE ENERGY ,INC . *Corpus Christi LNG L.P. Cheniere 100% *Artist’s Rendition *Creole Trail LNG L.P. Cheniere 100% *Sabine Pass LNG L.P. Cheniere 100% *Freeport LNG L.P. Cheniere 30% Limited Partner
Slide 2: 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 and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements, other than statements of his
Slide 3: Freeport LNG, L.P.
3 Freeport LNG, L.P. Cheniere Energy, Inc. 30% L.P. interest ⑀⍽ Land - 233 acres in Brazoria County, TX ⑀⍽ Berthing/Unloading - 2 docks - 78,000 cm to 250,000 cm LNGCs - 3 dedicated tugs ⑀⍽ Storage - 2 x 160,000 cm (6.7 Bcfe) ⑀⍽ Vaporization - 1.5 Bcf/d ⑀⍽ Project Status - 55% complete August 2006 F
Slide 4: Sabine Pass LNG, L.P.
4 Sabine Pass LNG, L.P. Cheniere Energy 100% ⑀⍽ Land - 853 acres in Cameron Parish, LA ⑀⍽ Accessibility - Deepwater Ship Channel - Sabine River Channel dredged to 40 feet ⑀⍽ Proximity - 3.7 nautical miles from coast - 22.8 nautical miles from outer buoy ⑀⍽ Berthing/Unloading - 2 docks - 87,000 cm to
Slide 5: Corpus Christi LNG, L.P.
5 Corpus Christi LNG, L.P. Cheniere Energy 100% ⑀⍽ Land - 212 acres in San Patricio County, TX - ~ 400 acres of permanent easement ⑀⍽ Accessibility - Deepwater Ship Channel - La Quinta Channel dredged to 45 feet ⑀⍽ Proximity - 14.3 nautical miles from coast - 16 nautical miles from outer buoy ⑀⍽ Ber
Slide 6: Creole Trail LNG, L.P.
6 Creole Trail LNG, L.P. Cheniere Energy 100% ⑀⍽ Land - 1463 Acres in Cameron Parish, LA ⑀⍽ Accessibility - Deepwater Ship Channel - Calcasieu Channel dredged to 40+ feet ⑀⍽ Proximity - 3.2 nautical miles from Coast - 30.9 nautical miles from outer buoy ⑀⍽ Berthing/Unloading - 2 docks - 87,000 cm to
Slide 7: Cheniere Energy Forecast
7 Cheniere Energy Forecast Note: These revenue objectives reflect numerous assumptions. Please refer to the Safe Harbor Statement on page 2 of this presentation. $125 $125 1.0 Bcf/d 1.0 Bcf/d Sold - Terminal Use Agreement Total, S.A. Chevron $250 2.0 Bcf/d TUA potential marketing to third parties ?
Slide 8: Potential Value of Spare Capacity
Potential Value of Spare Capacity
Slide 9: 2010 Global Liquefaction
9 2010 Global Liquefaction 40 30 20 10 0 (Bcf/d) 2005 2006 2007 2008 2009 2010 Source: Poten & Partners, EIA CAGR 2005 - 2010 Oil worldwide 2% Gas worldwide 3% LNG worldwide 13% LNG in N. America 33% Worldwide LNG trade Asia Pacific Europe North America 38 Bcf/d 38 Bcf/d
Slide 10: Realignment of LNG Imports By Region
10 12 18 25 5 9.6 12 2 8.6 13 0 5 10 15 20 25 30 2005 2010 2015 Source: Poten & Partners 2006 LNG Trade (Bcf/d) Realignment of LNG Imports By Region (Bcf/d) Asia Pacific Europe North America Atlantic Basin Pacific Basin Atlantic Basin Pacific Basin Atlantic Basin Pacific Basin
Slide 11: Seasonal LNG Imports - 2010
11 Seasonal LNG Imports - 2010 15.2 15.7 17.3 0 5 10 15 20 Atlantic Basin Q2 Q3 Q4 Bcf/d Europe Asia North America 9.6 5.6 8.4 10.1 7.9 10.6 9.6 7.2 Pacific Basin Atlantic Basin Pacific Basin Atlantic Basin Pacific Basin Atlantic Basin Pacific Basin Q1 17.9 Source: Cheniere Research
Slide 12: Europe Total Imports
12 Europe Total Imports 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2006 Total 2005 Total 2004 Total Total European Imports Source: Commercial Services 2006
Slide 13: Spain
13 Spain Imports Source: Commercial Services 2006 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2006 Total 2005 Total 2004 Total Terminal Capacity Terminal Capacity
Slide 14: France
14 France Imports Source: Commercial Services 2006 France Total Imports 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2006 Total 2005 Total 2004 Total Terminal Capacity Terminal Capacity
Slide 15: UK Isle of Grain Imports
15 UK Imports Source: Commercial Services 2006 UK Isle of Grain Imports 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2006 Total 2005 Total Terminal Capacity Terminal Capacity N/A 2004
Slide 16: Henry Hub Index minus National Balancing Point Index
16 Henry Hub Index minus National Balancing Point Index ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00 Jan-01 Mar-01 May-01 Jul-01 S
Slide 17: North America Regasification Capacity By 2010
17 Cheniere Estimate July 2006 North America Regasification Capacity By 2010 Capacity Utilization: ~ 70% Likely Import Capacity: ~ 11 Bcf/d Capacity Utilization: ~ 70% Likely Import Capacity: ~ 11 Bcf/d Everett Everett Cove Point Cove Point Elba Island Elba Island Lake Charles Lake Charles Sabine Pa
Slide 18: U.S. Total Imports
18 0.00 1.00 2.00 3.00 4.00 5.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2006 2005 2004 2003 Total U.S. Imports Source: Commercial Services 2006
Slide 19: Everett
19 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2006 2005 2004 Everett Imports Source: Commercial Services 2006 Terminal Capacity Terminal Capacity
Slide 20: Cove Point
20 0.00 0.20 0.40 0.60 0.80 1.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2006 2005 2004 Cove Point Imports Source: Commercial Services 2006 Terminal Capacity Terminal Capacity
Slide 21: Elba Island
21 0.00 0.20 0.40 0.60 0.80 1.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2006 2005 2004 Elba Island Imports Source: Commercial Services 2006 Terminal Capacity* Terminal Capacity* * Elba Island capacity increased from .4 Bcf/d to .8 Bcf/d in February 2006
Slide 22: Lake Charles
22 0.00 0.50 1.00 1.50 2.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcf/d 2006 2005 2004 Lake Charles Imports Source: Commercial Services 2006 Terminal Capacity* Terminal Capacity* * Lake Charles capacity increased from 1.2 Bcf/d to 1.8 Bcf/d in July 2006
Slide 23: Niche Model vs. Merchant Model Case Study: BG 2006
23 Niche Model vs. Merchant Model Case Study: BG 2006 Source: BG analyst presentation, Sept.11, 2006 ⑀⍽ Niche: Elba Island - ~ 400 MMcf/d - Consistent volumes throughout year ⑀⍽ Merchant: Lake Charles - Contracted Capacity: ~ 1.0 Bcf/d - Delivered Capacity: ~ 400 MMcf/d - Diverted Cargoes to premium
Slide 24: Implication for Gulf Coast Excess Capacity
24 Implication for Gulf Coast Excess Capacity 1 Bcf/d ⑀⍽ Merchant activities are necessary to deal with seasonality ⑀⍽ Gulf Coast is “backstop” for merchant activities ⑀⍽ Can accommodate large quantities of baseload capacity ⑀⍽ Allows merchant to redirect cargoes to premium markets during peak seaso
Slide 25: Receiving Terminal Portfolio Commercialization Alternatives
25 Cheniere Receiving Terminal Portfolio Commercialization Alternatives ⑀⍽ Terminal Use Agreement (TUA) $125 MM - $0.32/MMBtu ⑀⍽ Indexed Purchase Agreement (IPA) $ 220 MM - 10% margin; $6.00 Henry Hub ⑀⍽ Potential for Merchant Seasonal Cargo Diversion $180 MM - $1.00 price improvement; 6 months per
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