Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Cheniere Energy Partners — 2014 Citi MLP/Midstream Infrastructure Conference

33 slides from Cheniere Energy's conference presentation, August 2014

  1. Slide 1: Cheniere Energy Partners, L.P. 2014 Citi MLP/Midstream Infrastructure Conference

    Cheniere Energy Partners, L.P. 2014 Citi MLP/Midstream Infrastructure Conference August, 2014

  2. 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 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, oth

  3. Slide 3: Summary Organizational Structure

    Summary Organizational Structure Cheniere Energy, Inc. (NYSE MKT: LNG) 84.5% Interest 100% Interest 100% Interest 100% Interest Cheniere Energy Partners Cheniere Corpus Christi Public Cheniere Energy 15.5% LP Holdings, LLC Marketing, LLC Liquefaction, LLC Partners GP, LLC (NYSE MKT: CQH) (“CMI”) (“C

  4. Slide 4: Projected Global LNG Demand Growth

    Projected Global LNG Demand Growth Regional LNG Import Outlook (mtpa) Europe 24 64 95 2015 2020 2030 Asia 383 Americas 268 198 21 17 24 2015 2020 2030 2015 2020 2030 Middle East/N. Africa 4 9 38 2015 2020 2030 Global demand is forecast to grow from 236 mtpa (~32 Bcf/d) in 2012 to 541 mtpa (~72 Bcf/d

  5. Slide 5: Cheniere's LNG Export Facilities Offer Attractive Pricing for Global LNG Buyers

    Cheniere’s LNG Export Facilities Offer Attractive Pricing for Global LNG Buyers Worldwide LNG Prices = 11% to 15% of Crude Oil $/MMBtu Regional Natural Gas & LNG Prices July 2014 Example Prices 20 Henry Hub: $4.00 / MMBtu 18 Brent Crude: $100 / Barrel 16 $14.80 ($/MMBtu) Americas Europe Asia 14 LNG

  6. Slide 6: Cheniere Energy Partners' Liquefaction Projects

    Cheniere Energy Partners’ Liquefaction Projects 6 Trains, ~$18B investment, ~27 MTPA LNG Exports (~3.5+ Bcf/d) Sabine Pass Sabine Pass T1‐4 T5‐6 Estimated Cost(1) $12B $6B Volume (MTPA) 18.0 9.0 3rd Party Contracts to 16.0 3.75 date (MTPA) Development Under Permitting/ Stage Construction Commerciali

  7. Slide 7: Brownfield LNG Export Project: Sabine Pass Liquefaction

    Brownfield LNG Export Project: Sabine Pass Liquefaction Utilizes Existing Assets, Trains 1‐4 Fully Contracted, Under Construction Current Facility  ~1,000 acres in Cameron Parish, LA  40 ft ship channel 3.7 miles from coast  2 berths; 4 dedicated tugs  5 LNG storage tanks (~17 Bcfe of storage) 

  8. Slide 8: LNG Sale and Purchase Agreements (SPAs)

    LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction ~20 mtpa “take‐or‐pay” style commercial agreements ~$2.9B annual fixed fee revenue for 20 years BG Gulf Coast LNG Gas Natural Fenosa Korea Gas Corporation GAIL (India) Limited Total Gas & Power N.A. (6) Centrica plc (6) Annual Contract

  9. Slide 9: Excess Volumes – Cheniere Marketing SPA

    Excess Volumes – Cheniere Marketing SPA Cheniere Marketing developing platform for international LNG sale opportunities  SPA with Cheniere Marketing, Inc. (CMI) for all excess LNG produced at Sabine Pass that is not committed to other customers.  No volume limitations  Not take‐or‐pay style  CMI

  10. Slide 10: SPL Construction Completion Schedules Trains 1-4

    SPL 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 Record Fi

  11. Slide 11: SPL Construction – June 2014

    SPL Construction – June 2014

  12. Slide 12: Aerial View of SPL Construction

    Aerial View of SPL Construction Pile driving Condenser Foundation Train 4 Train 3 Air Coolers T1 Cold Box Area T1 Compressor Area Train 2 T1 Propane Condenser Area Train 1

  13. Slide 13: FERC & DOE Regulatory Approvals Needed for SPL Trains 5-6

    FERC & DOE Regulatory Approvals Needed for SPL Trains 5‐6 Regulatory approval expected 2014/2015  FERC: Original Scheduling Notice received 5/2014, updated Scheduling Notice pending  DOE: FTA authorization received; Non‐FTA authorization pending 13

  14. Slide 14: FERC Applications Filed for Liquefaction Projects

    FERC Applications Filed for Liquefaction Projects LNG Export Projects Pre‐filing Date Application Date FERC Scheduling EIS / EA Scheduled Date for Rec’d Notice Issued EIS or EA Approval Sabine Pass Liquefaction T1‐4 July 26, 2010 January 31, 2011 EA  4/16/2012 Corpus Christi Liquefaction December 1

  15. Slide 15: Timeline & Milestones

    Timeline & Milestones Target Date SPL SPL Milestone T1‐2 T3‐4 T5‐6  Initiate permitting process (FERC & DOE)    T5   Commercial agreements   T6: 2014  EPC contract   2015  Financing commitments   2015  Regulatory approvals   2014/15  Issue Notice to Proceed   2015  Commence oper

  16. Slide 16: Financial Estimates

    CHENIERE el Financial Estimates 16

  17. Slide 17: CQP Forecasted Distributable Cash Flows

    CQP Forecasted Distributable Cash Flows CQP estimated distributable cash flows ($ in millions) Trains 1‐4 Trains 1‐6 SPLNG distributable cash flow $370 $380 SPL distributable cash flow 1,400 2,260 CTPL distributable cash flow 30 30 CQP expenses (15) (15) Estimated total distributable cash flow $1,78

  18. Slide 18: CQP Outlook – Visible Future Growth

    CQP Outlook – Visible Future Growth Estimated LNG export volumes Estimated CQP revenues 1,500 $4.5 $4.4 1,378 1,300 $4.0 1,046 $3.5 $3.2 1,100 $2.9 939 $3.0 ($ in billions) (TBtu per year) 900 823 $2.6 $2.5 700 $2.0 500 347 $1.5 $1.2 300 $1.0 100 – $0.5 $0.3 (100) 2015E 2016E 2017E 2018E 2019E 2020E

  19. Slide 19: Cheniere's Debt Summary

    Cheniere’s Debt Summary As of July 2014 ($ in millions) No Debt Cheniere Energy, Inc. (NYSE: LNG) Cheniere Energy Corpus Christi CQP GP Cheniere Marketing, No Debt Partners LP Holdings, LLC Liquefaction, LLC (& IDRs) LLC (NYSE: CQH) Cheniere Energy Partners, L.P. (NYSE: CQP) Sabine Pass LNG, L.P. Cr

  20. Slide 20: AR, ee

    AR, ee

  21. Slide 21: Appendix

    CHENIERE el Appendix 21

  22. Slide 22: Operating Assets

    Operating Assets Sabine Pass LNG Terminal Creole Trail Pipeline 22

  23. Slide 23: Contracted Capacity at SPLNG Third Party Terminal Use Agreements

    Contracted Capacity at SPLNG Third Party Terminal Use Agreements (TUAs) Long‐term, 20 year “take‐or‐pay” style commercial contracts ~$253MM annual fixed fee revenue 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 (

  24. Slide 24: Creole Trail Pipeline

    Creole Trail Pipeline  In May 2013, Cheniere Partners acquired CTPL from Cheniere Energy, Inc. for $480MM, and following the sale CTPL secured a $400 million senior secured term loan facility  CTPL is fully contracted with expected annual revenue of ~$80MM expected to commence with Train 1 operati

  25. Slide 25: LSTK EPC Contract with Bechtel

    LSTK EPC Contract with Bechtel Minimize Construction Costs and Risks Bechtel was the EPC contractor for the regasification project at the Why Bechtel? Sabine Pass LNG terminal, which was constructed on time and on budget Proven construction contractor • Founded in 1898 and headquarted in San Francis

  26. Slide 26: Global LNG Supply & Demand

    Global LNG Supply & Demand LNG Importers - Price Indexation 2013 Global LNG Capacity: ~38 Bcf/d Oil Products Algeria ‐ 2.7 2013 Global LNG Demand: ~31 Bcf/d Natural Gas Norway ‐ 0.5 Japan Crude Cocktail Egypt ‐ 1 Qatar – 10.1 USA ‐ 0.2 Russia ‐ 1.4 24 4.7 Europe Asia 1.3 North America Malaysia ‐ 3.4

  27. Slide 27: Firm Liquefaction Capacity Additions (Bcf/d)

    Firm Liquefaction Capacity Additions (Bcf/d) Nameplate Liquefaction Capacity ~ 38 Bcf/d as of YE 2013 ~ 54 Bcf/d by YE 2019 Bcf/d 3.00 2.75 Asia Pacific SPL T2, Gorgon T2, Petronas FLNG1 Atlantic Basin APLNG T2 2.50 Gladstone T1 Gorgon T3, Wheatstone T1, Gladstone T2 2.25 SPL T1, Gorgon T1, APLNG T1

  28. Slide 28: Multiple Local Pipeline Interconnections Provide Several Options for Access to Natural Gas Supply

    Multiple Local Pipeline Interconnections Provide Several Options for Access to Natural Gas Supply Cheniere Creole Trail Pipeline Trunkline Kinder Morgan Louisiana Pipeline NGPL Texas to Louisiana (bi‐directional) Pine Prairie Transco Energy Center Pine Prairie TETCO Texas Gas Transco Z3 Tennessee FG

  29. Slide 29: U.S. LNG Export Projects

    U.S. LNG Export Projects Quantity Company DOE FERC* Contracts (Bcf/d) Cheniere Sabine Fully 2.2 Fully permitted Pass T1 – T4 Subscribed FTA + Oregon LNG Freeport 1.8 NonFTA A T1‐T3 FTA + Fully Lake Charles 2.0  NonFTA Subscribed Dominion Cove Point Dominion Cove FTA + Jordan Cove 1.0  Fully Point

  30. Slide 30: Conversion of Class B and Subordinated Units

    Conversion of Class B and Subordinated Units Class B Units:  Mandatory conversion: within 90 days of the substantial completion of Train 3  Optional conversion by a Class B unitholder may occur at any of the following times: • After 83 months from issuance of EPC notice to proceed • Prior to the r

  31. Slide 31: Pro Forma CQP Ownership

    Pro Forma CQP Ownership (in millions) CEI CQH(3) Blackstone Public Total Common units (1) 12.0 45.1 57.1 Class B units (1) 45.3 100.0 145.3 Subordinated units (1) 135.4 135.4 General Partner @ 2% 6.9 6.9 6.9 192.7 100.0 45.1 344.7 Percent of total (as of 12/31/13) 2% 55.9% 29.0% 13.1% 100.0% Pro for

  32. Slide 32: AR, ee

    AR, ee

  33. Slide 33: Investor Relations Contacts

    Investor Relations Contacts Randy Bhatia: Director, Finance and Investor Relations – (713) 375‐5479, [email protected] Christina Burke: Manager, Investor Relations – (713) 375‐5104, [email protected]

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