Slide 1: Cheniere Energy, Inc. Corporate Presentation
CHENIERE Cheniere Energy, Inc. Corporate Presentation June 2011
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 274 of the Securities ct of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended”. All statements, othe
Slide 3: Cheniere develops, constructs and operates LNG terminals and pipelines
= Cheniere is engaged in the development, construction and operation of LNG terminals and pipelines and marketing of LNG and natural gas — Sabine Pass LNG became operational in 2008 and cost ~$1.6B, send-out capacity is 4.0 Bcf/d, storage capacity is 16.9 Bcfe — Sabine Pass LNG is connected to the U
Slide 4: Stable Contracted Revenues at SPLNG
Stable Contracted Revenues at SPLNG Fully contracted capacity under three long-term Terminal Use Agreements Chevron 2? ee) CHENIERE Tovae. a! ol Total Gas & Power NA. ChevronUSA Cheniere Energy Investments. Capacity 1.0 Befld 1.0 Betid 2.0 Betld Fees Reservation Fee $0.28/MMBTU $0.28/MMBTU $0.28/MMB
Slide 5: Liquefaction Project
CHENIERE Liquefaction Project
Slide 6: Developing liquefaction trains at Sabine Pass for bi-directional terminal
= Cheniere is developing a project to add liquefaction trains, transforming the Sabine Pass LNG facility into the first bi-directional LNG terminal that can import & export LNG — Proposing up to 4 liquefaction trains, 16 mtpa total nominal processing capacity — Seeking to contract 14 mtpa under 20-y
Slide 7: Current Facility
Current Facility = 853 acres in Cameron Parish, LA = 40 ft ship channel 3.7 miles from coast =2 berths; 4 dedicated tugs =5 LNG storage tanks (17 Bef of storage) =4.3 Beffd peak regasification capacity =5.3 Beffd of pipeline interconnection to the U.S. pipeline network =Up to 4 liquefaction trains d
Slide 8: Bi-directional Service Provides Opportunity to Arbitrage Henry Hub vs. Oil
Bi-directional Service at Sabine Pass Provides Opportunity to Arbitrage Henry Hub vs. Oil Worldwide LNG prices predominantly based on oil prices = $10 - $25 / MMBtu LNG Contract Price Indexation % 11% 15% at $90/bbI $ 9.90 $ 13.50 at$150bI $ 16.50 $ 22.50 Cost to deliver gas from Sabine Pass to Euro
Slide 9: Unconventional Plays — Comparative Rates of Return
Unconventional Plays — Comparative Rates of Return Permian (770 100+ Bank or Lower (@gmbo), © Haynesville @ Weak (8%-20%) @ Good (> 20%) (Combo) CHENIERE nel 8 Source: Bentek Energy
Slide 10: Strategically Located — Extensive Market Access to Gas
Strategically Located — Extensive Market Access to Gas Recouer aus Ue eenterel Primary Gas Sources for Sabine Pass Liquefaction Reserves (Tcf) Conventional Gulf Coast Onshore; Bamett; Haynesville; Bossier; Eagle Ford Shale T T T 1 oA 1 : | | “ Pa ; | Psy (Montana } In \ Hey om ae}————h. Ve cot ‘ton
Slide 11: Strategically Located — Multiple Pipeline Interconnects
Strategically Located — Multiple Pipeline Interconnects —Cheniere Creole Trail Pipeline 2.0 Befid —Kinder Morgan Louisiana Pipeline 3.2 Befld Total Pipeline Capacity 5.2 Befid © Liquidity Points 4 Storage we *Ss [Henry Hub |p YO SSetegson ete Wager “" CHENIERE am
Slide 12: Sabine Pass Liquefaction Project - Brownfield Development, Lower Capital Costs
Sabine Pass Liquefaction Project - Brownfield Development, Lower Expected Capital Costs = Range of liquefaction project costs: $200 - $2,000 per ton Cost: Siton = 1 Beffd of capacity = $1.5 B to $9 B = Sabine Pass Liquefaction project estimated to be ~$400/ton 2000 1500 @ ConocoPhillips-Bechtel trai
Slide 13: ConocoPhillips-Bechtel — Global LNG Collaboration
ConocoPhillips-Bechtel — Global LNG Collaboration Collaboration projects onstream ahead of schedule and exceeded expectations Proven Designs Equatorial Guinea LNG 1999 2006 2007 ConocoPhillips ay + ‘Source: ConocoPhillips, Bechtel CHENIERE zm Note: Past results nota guerantee of future performance.
Slide 14: Local Support and Regulatory Status
= Very strong local support: Cameron Parish officials, Louisiana state and federal congressional delegations, parish & state agencies = Strong support from most gas producing states = Exporting natural gas will — stimulate the economies through job creation; — provide a boost to American global comp
Slide 15: Commercial Structure: Estimated Terms of Liquefaction Contracts
Commercial Structure: Estimated Terms of Liquefaction Contracts Summary of Estimated LNG Processing Capacity Fees: + Capacity Reservation Fee: Approximately $1.75/MMBtu « “Take-or-Pay”, permits lifting or unloading cargoes « Fixed fee regardless of use, paid monthly in advance = Includes rights to e
Slide 16: Customer MOUs Signed to Date
18 Customer MOUs Signed to Date* Date Customer Rating Capacity (intpa) Nov-10 + Morgan Stanley (US) A2TA 17 Oct-10 ENN Energy Holdings (China) Ba1 / BBB- 1.5 Nov-10 Gas Natural Fenosa (Spain) Baa2 / BBB 1.5 Jan-i1. EDF (France) A3/A 15 Jan-11 Sumitomo (Japan) A21A 1.5 Feb-11 Basic Energy (Dominican
Slide 17: Estimated Financial Impact - Liquefaction Project
Estimated Financial Impact - Liquefaction Project (Annualized) Cheniere expected to benefit from distributions received through its CQP ownership and management contracts, and fees paid to Creole Trail Pipeline Contracted Liquefaction Project Economics Capacity Fees Impact to CQP Impact to LNG Curre
Slide 18: Expected Timeline
Expected Timeline Milestone Target Date = Sign MOUs with interested parties Completed = DOE export authorization Received = Definitive commercial agreements Mid 2011 = EPC contract 2H2011 = Financing commitments 2H2011 = FERC construction authorization 2012 = Commence construction 2012 = Commence op
Slide 19: Financial Overview
CHENIERE Financial Overview (All numbers reflect pre-Liquefaction financials)
Slide 20: Estimated LNG Net Cash Flows
Estimated LNG Net Cash Flows* Annualized estimates pre-Liquefaction Project Cash receipts expected to increase from CQP driven by Liquefaction Project - unit distributions, management fees and Creole Trail P/L tariffs Receipts = Distributions from CQP (Common/GP) $ 20 = Management fees from CQP 819%
Slide 21: Estimated CQP Distributable Cash Flows
Estimated CQP Distributable Cash Flows Annualized estimates pre-Liquefaction Project Receipts » TUAs — Chevron and Total = Other Services Total Cash Receipts Costs « Operating, G&A, Maintenance CapEx 46 » Debt Service 165 Total Costs 211 Available for Distributions to Common and G.P. $ 49 Potential
Slide 22: CQP Ownership
CQP Ownership (in mm) Cheniere, Inc. Public Total Common Units 10.9 15.6 26.5 Subordinated Units 135.4 - 135.4 General Partner @ 2% 3.3 - 3.3 149.6 15.6 165.2 Percent of total 90.5% 9.5% 100% = Currently, CQP generates distributable cash flows (DCF) sufficient to pay the IQD and applicable 2% to the
Slide 23: Condensed Balance Sheets
Condensed Balance Sheets As of March 31, 2011 @ in MM) Cheniere Energy Other Cheniere Consolidated Partners, L.P. _Energy, Inc. Cheniere Energy, Inc. ©) Unrestricted cash and equivalents $ - ¢ $ 24 Restricted cash and securities ©) 184 4 188 Accounts and interest receivable 4 (E>) 33 Property, plant
Slide 24: Appendix
CHENIERE Appendix
Slide 25: Cheniere Overview
5 Cheniere Overview Cheniere Energy Partners, L.P. Cheniere Energy, Inc. NYSE Amex 2, NG 4 NYSE Amex US: CaP 88.5% (LP interest) oe 2.0% (GP interest) Cheniere LNG 4 (CP ners Holdings, LLC = 90.5% Ownership of CQP Sabine Pass LNG, L.P. «= 4 Bcfid Regasification Terminal, Fully Contracted Cheniere Ma
Slide 26: Organization Structure and Existing Debt
Organization Structure and Existing Debt NYSE Amex US: LNG — 5206 mm 2.26% Convertible Senior Unsecured Notes due August 2012 CHENIERE | LZ 100% Ownership Interest, $298 mm 9.78% Term Loan due May 2012 Cheniere LNG Holdings, LLC $270 mm 12.0% Senior Secured Loans due 2018 88.6% LP Interest 100% ote
Slide 27: Global LNG Market
Global LNG Market LNG Importers — Price indexation . Oil Products @ 2010 Total Global LNG Capacity ~37 Betid Natural Gas 2010 Regional LNG Demand —30 Bettd @ sce Russia- 1.3 ‘De re ‘North =~ Malaysia - 3.0 Amaica Indonesia - 4.6 Brunei- 1.0 Bsralia -34 =kE se south america Equatorial Guinea — 0.6 r
Slide 28: Firm Liquefaction Capacity Additions
Firm Liquefaction Capacity Additions Nameplate Liquefaction Capacity ~ 37 Bcffd as of YE 2010 Bea ~ 45 Beffd by YE 2015 Middle East Gulf 25 2.0 15 1.0 05 2 Wl Asia Pacific | Atlantic Basin Gorgon Tt Angola LNG Gassi Touli ' i : 1 I i l 1 1 1 — Q1 Q2 Q3 Q4 Q1 Q2 Q3 O4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 29: Attractive Oil Linked Market Prices
Attractive Oil Linked Market Prices $/MMBtu Recent LNG/ Gas Prices - April, 2011 1% — 15% Ss — Japan Avg LNG —— European Gas Contract —— UK -NBP —— US Henry Hub 29 Source: CME as of March 31, 2011 CHENIERE am
Slide 30: North American LNG Import Terminals
ee Ss Gulf LNG Costa Azul ge Lake Charles O oe @ Existing @ Under Construction x Source: Websites of Terminal Owners Terminal Baseload Capacity Holder Sendout (tantctid) Canaport 1,000 Repsol Everett - Suez 700 Cove Point 1,800 BP, Statoil, Shell Elba Island 1,800 BG, Marathon, Shell Gulf LNG 1,300
Slide 31: Cheniere Energy Contacts
CHENIERE Cheniere Energy Contacts Katie Pipkin, Vice President Finance & Investor Relations (713) 375-5110 — katie. pipkin@cheniere.com Christina Burke, Manager Investor Relations (713) 375-5104 - christina. burke@cheniere.com