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APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc.

Cheniere Energy, Inc. · Apr 8, 2015 · 136 slides

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Slides

  1. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 1
    2015 Cheniere Energy Investor / Analyst Day April 8, 2015
  2. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 2
    Welcome & Introduction Charif Souki Chairman, President, and CEO
  3. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 3
    Executing on Strategy 2020 Forecast 40.5 10% of the 6 Bcf/d total LNG market mtpa LNG by 2019/20 One of the largest One of the largest exporters of LNG on natural gas buyers in a global basis the U.S. 30B+ in U.S. 950…
  4. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 4
    Chenieres Key Businesses LNG GAS CHENIERE FUTURE PLATFORM PROCUREMENT MARKETING DEVELOPMENTS Two LNG terminals Providing feedstock LNG sales, FOB or Developing/ to be located along for LNG production DES, provided to investing in…
  5. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 5
    2014 Accomplishments Commercial Signed long-term SPAs covering 7.7mtpa of LNG volumes Aggregate volumes covered under 20-year contracts now over 28mtpa Regulatory FERC permit received for Corpus Christi Liquefaction Project EA…
  6. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 6
    2015 Goals First LNG at Sabine Pass by year-end Contract additional volumes to reach 31.8 mtpa target; 80% of capacity (28 mtpa signed to date) Reach FID and commence construction on: Corpus Christi Trains 1&2 1H 2015 Sabine Pass…
  7. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 7
    Cheniere Vision Create shareholder value, with focus on cash flow per share Diversify into new energy-related businesses through a horizontal and vertical integration strategy There are no pure-plays 6
  8. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 8
    Energy Fundamentals Outlook Anatol Feygin Senior Vice President, Strategy & Corporate Development
  9. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 9
    Durable Fundamental Trends What Hasnt Changed Global hydrocarbon demand is expected to exhibit stable growth What Has Changed Unconventional supply, driven by the U.S., transforming global balances A new hydrocarbon world order…
  10. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 10
    Global Gas and Liquids Fundamentals Overview U.S. transforming global hydrocarbon balances Global demand growth steady with no major shift in expectations Driven by Texas, Lower 48 seeing unprecedented hydrocarbon output growth…
  11. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 11
    Gas & Liquids Demand Growth Expectations Remain Steady Gas demand growth is faster than any Gas Demand Growth Per Year other hydrocarbon at +1.6% p.a. 25 = Forecast LNG demand is growing even faster 20 Oil demand growth fueled by…
  12. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 12
    Shale Revolution Reversed Trend in U.S. Gas Supply U.S. Gross Gas Production1 90 2000-2006: -3% 2007-2014 : 29% 85 80 75 70 Bcf/d 65 60 55 50 45 40 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009…
  13. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 13
    U.S. Stands Alone as Unconventional Hydrocarbon Producer Abundant Reserves Are Necessary But Insufficient For U.S.-Style Revolution Europe Argentina China United States of America 2011: 2011: 2011: 2011: At least 7 IOCs in…
  14. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 14
    And Now Shale Has Created Similar Expansion in Oil Supply Oil Supply Growth Forecasts 110 Global +6.32Mbpd 105 U.S. +4.76Mbpd Million bpd 100 95 Texas +2.68Mbpd 90 43% of global incremental 85 output 2010-14 2010 2020…
  15. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 15
    Supply Growth Affecting Global Markets by Displacing Imports Unprecedented Supply Revival Led Shift Liquids Exports Have Risen Dramatically Reached world markets first by displacing Propane imports Production swelled storage, backed…
  16. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 16
    Price Elastic U.S. Drives Cyclical Volatility North American Drillers Cut 2015 Spend By 75B Spending Reductions Felt in Rig Count Already U.S. drillers slashed capex by 56B from 2014 U.S. rig count has fallen more rapidly this cycle…
  17. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 17
    Swing Producer U.S. Reacts, Rest of the World Does Not ROW Rig Response Has Been Muted Unconventional Declines Unprecedented Ex-North America almost unfazed by bust U.S. supply expected to be quicker to react to ROW just -33 rigs…
  18. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 18
    Global Fundamentals Support Continued Growth of Exports Stable global demand growth for energy expected to continue The U.S./Texas is the low cost incremental producer Displacement of imports has largely played out We believe…
  19. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 19
    What Do These Three Have In Common Crude Oil Horses Transported by Sea for Slaughter Unprocessed Western Red Cedar All Restricted From Export In The U.S. Under Current Regulations 754 of the Bureau of Industry and…
  20. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 20
    Cheniere Optimally Positioned to Address Constraints Across the Hydrocarbon Chain Upstream logistics and hydrocarbon capture Texas Supply Midstream Pipelines Storage Sabine Pass Liquefaction Corpus Christi San…
  21. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 21
    LNG Platform Update Keith Teague Executive Vice President, Asset Group
  22. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 22
    Cheniere LNG Platform Nine Trains, 40.5 mtpa expected by 2019/20; 30 B+ in U.S. infrastructure Sabine Pass Liquefaction 6 train development 27 mtpa 3.8 Bcf/d in export capacity Trains 1-4 are under construction; First LNG in late…
  23. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 23
    Sabine Pass Liquefaction Brownfield LNG Export Project 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;…
  24. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 24
    LSTK EPC Contracts 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…
  25. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 25
    Aerial View of SPLNG Spring 2012
  26. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 26
    Aerial View of SPL Construction March 2015 6
  27. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 27
    Project Execution Spring 2014
  28. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 28
    Project Execution Spring 2015
  29. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 29
    Project Execution Spring 2015 T1 Methane Cold Box Train 3 Train 4 T1 Ethylene Cold Box Compressor Area Train 1 Air Coolers T2 Methane Cold Box T2 Ethylene Cold Box Propane Condenser Area Train 2
  30. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 30
    SPL Construction Completion Schedules Trains 1 4 Record First LNG Egyptian LNG T1 BG DFCD Train 1 Feb 2016 First LNG GN DFCD Train 2 June 2016 KOGAS DFCD Train 3 Jun 2017 April 2017 GAIL DFCD Train 4 Mar 2018 Sept…
  31. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 31
    SPL Construction Manpower Train 1 4 Workforce peaking on site now at 4,400 Over 31 million construction man hours; 1.7 billion in construction wages 11
  32. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 32
    SPL Craft Labor Incentive 12
  33. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 33
    Sabine Pass Liquefaction Project Execution Keys to Success World class terminal site Deep channel in close proximity to the coast Sufficient acreage to satisfy siting challenges, both regulatory and physical World class contractor…
  34. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 34
    Corpus Christi Liquefaction Project Proposed 3 Train Facility HoustonNew Orleans 1,000 acres owned and/or controlled Corpus Christi 2 berths, 3 LNG storage tanks (10.1 Bcfe of storage) Gulf of Mexico Key Project Attributes 45 ft.…
  35. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 35
    Key Differences Between CCL and SPL Grassroots construction at CCL; SPL utilizes existing assets at the regasification terminal Full containment LNG storage tanks at CCL instead of single containment Dry low emissions (DLE)…
  36. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 36
    Corpus Christi Liquefaction Artists Rendition Lump Sum Turnkey contracts signed with Bechtel: Stage 1: 7.1B includes 2 Trains, 2 tanks, 1 berth Stage 2: 2.4B includes 1 Train, 1 tank, 1 berth 16
  37. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 37
    CCL EPC Contract Summary Stage 1 Stage 2 Contract Price 7.1 billion 2.4 billion Two LNG trains One LNG train Scope Two storage tanks One storage tank One marine berth One marine berth Most offsites, utilities, and supporting…
  38. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 38
    Projected CCL Construction Completion Schedules Trains 1-3 Based on current EPC contract 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7…
  39. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 39
    CCL Early Works Access Road Widening & Pipeline Relocation 19 19
  40. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 40
    CCL Liquefaction Area Artists Rendition 20 20
  41. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 41
    CCL Storage Area & Train 1 Artists Rendition 21
  42. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 42
    CCL Marine Area Artists Rendition 22
  43. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 43
    Cheniere LNG Platform Timeline & Milestones Target Date SPL Corpus SPL Milestone T1-2 T3-4 Christi T5-6 Initiate permitting process (FERC & DOE) T1-T2 T5 Commercial agreements T3: 2015 T6: 2015 EPC contract 2015 Financing…
  44. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 44
    Gas Procurement Corey Grindal Vice President, Supply
  45. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 45
    Agenda Review of 2014 Stated Gas Supply Guiding Principals 2015 Status of Sabine Pass Supply 2015 Status of Corpus Christi Supply Balance of Calendar 2015 and Forward Supply Strategy 2
  46. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 46
    Gas Supply Group Principals Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Establish counterparty / market liquidity Capacity contracted at terminal level Redundant…
  47. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 47
    2015 Status of Sabine Pass Supply Artist rendition 4
  48. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 48
    Establish Market Liquidity NAESB Contracting Completed NAESB Contracts Production by Counterparties with Completed NAESBs Percentage of Current Production Completed Under Negotiation Bcf / Day (72.5 Bcf / Day) Top 5 Producers 5 0…
  49. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 49
    Sabine Pass Supply Counterparty Liquidity Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Sabine Pass Establish counterparty / market liquidity Capacity contracted at…
  50. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 50
    SPL Contracted Terminal Transportation Pipeline Capacity by Train 5,000,000 Train 1 Train 2 Train 3 Train 4 Train 5 Train 6 4,000,000 3,000,000 Dth/d 2,000,000 1,000,000 - Nov-15 Nov-16 Nov-17 Nov-18 Nov-19…
  51. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 51
    Sabine Pass Supply Terminal Capacity Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Sabine Pass Establish counterparty / market liquidity Capacity contracted at terminal…
  52. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 52
    Sabine Pass Liquefaction Upstream Pipeline Expansions Texas Gas Shale Plays Lebanon Texas Gas Almost 1 Bcf/d Contracted Basins Starts late 2016/ early 2017 Contracted by Utica producers SPL owns 300,000 Dth/d…
  53. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 53
    Sabine Pass Liquefaction Upstream Pipeline Expansions Columbia Gulf Shale Plays Columbia Gulf Transmission 1.2 Bcf/d Contracted from Basins Columbia Gas Transmission Starts 2017 Contracted by Marcellus/ Utica producers SPL…
  54. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 54
    Sabine Pass Liquefaction Upstream Pipeline Expansions ANR Shale Plays Lebanon ANR Pipeline 1.2 Bcf/d Contracted Basins Starts 2015/ 2016 Contracted by Marcellus/ Utica producers SPL has contracted term purchases off of…
  55. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 55
    Sabine Pass Liquefaction Upstream Pipeline Expansions Texas Eastern Shale Plays Texas Eastern Transmission 3 Expansion Projects contracted Basins Total expansion capacity to South Louisiana is 1.7 Bcf/d 1st Capacity started Nov…
  56. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 56
    Sabine Pass Liquefaction Upstream Pipeline Expansions Trunkline Shale Plays Trunkline Gas/ ETP Rover SPL anchored first reversal Basins ETP Rover 3.25 Bcf/d expansion; 0.75 Bcf/d to Louisiana Rover capacity starts 2017…
  57. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 57
    Sabine Pass Supply Upstream Capacity Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Sabine Pass Establish counterparty / market liquidity Capacity contracted at terminal…
  58. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 58
    Sabine Pass Liquefaction Term Gas Purchase Locations Lebanon Marcellus / Utica Woodford Fayetteville Granite Wash Shale Plays NGPL TexOk Trunkline Zone 1A Basins Permian Basin Barnett Texas Gas Zone 1 Transco…
  59. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 59
    Sabine Pass Liquefaction Term Gas Supply Deal Summary Gas Supply by Train 3,000 3,000,000 Train 1 Train 2 Train 3 Train 4 2,500 2,500,000 2,000 2,000,000 Dth/d 1,500,000 1,500 65% 50% 1,000 1,000,000 Filled…
  60. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 60
    Sabine Pass Supply Term Gas Purchases Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Sabine Pass Establish counterparty / market liquidity Capacity contracted at terminal…
  61. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 61
    Sabine Pass Supply Gas Supply Personnel Have hired the full front office team to manage supply and logistics Over 19 years each of average of energy experience Trading Infrastructure Development and Analysis Fundamental Analysis…
  62. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 62
    Sabine Pass Supply Personnel Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Sabine Pass Establish counterparty / market liquidity Capacity contracted at terminal level…
  63. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 63
    2015 Status of Corpus Christi Supply Artist rendition 20
  64. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 64
    Corpus Christi Counterparty Contracting Current Actions Have contracted some Texas-only producers that cant get to SPL Replicating supply strategy executed in SPL for CCL volumes Plan for 2015 After achieving FID, will start…
  65. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 65
    Corpus Christi Supply - Contracting Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Sabine Pass Corpus Christi Establish counterparty / market liquidity Capacity contracted…
  66. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 66
    Corpus Christi Pipeline (CCPL) Proposed 23 Miles of 48 Pipe, 2.25 bcf/d Deliverability, 4.5 bcf/d Interconnect Capacity Capacity Interconnect Bcf/d Tennessee 1.00 Enterprise 0.50 Transco 0.50 NGPL 0.50 Sinton Compressor…
  67. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 67
    Corpus Christi Gas Supply Network Marcellus / Utica Woodford Granite Wash Haynesville Permian Barnett Shale Plays Basin Basins NGPL Tennessee Gas Eagle Ford HPL KM Tejas Corpus Christi Oasis Enterprise 24…
  68. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 68
    CCL Transportation Capacity Upstream Transportation at CCL is different than SPL Reversals of existing infrastructure more extensive in South Texas than in South Louisiana Goal for most capacity will be to reach out of the state…
  69. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 69
    CCL Transportation Portfolio Pipeline Capacity by Train 4,000,000 Train 1 Train 2 Train 3 3,500,000 3,000,000 2,500,000 Dth/d 2,000,000 1,500,000 1,000,000 500,000 - Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20…
  70. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 70
    CCL Transportation Capacity Connections to CCL Pipeline Transportation at CCL is different than SPL Reversals of existing infrastructure more extensive in South Texas than in South Louisiana Goal for most capacity will be to reach…
  71. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 71
    Corpus Christi Supply - Capacity Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Sabine Pass Corpus Christi Establish counterparty / market liquidity Capacity contracted at…
  72. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 72
    CCL Term Gas Purchases In discussions with producers that have gas into relevant contracted capacities Working some capacity discussions along with term purchase discussions With first gas expected in 2018, goal is to have some…
  73. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 73
    Corpus Christi Supply Term Supply Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Sabine Pass Corpus Christi Establish counterparty / market liquidity Capacity contracted…
  74. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 74
    Corpus Christi Supply Personnel Gas procurement Cheniere to secure gas at the terminal for liquefaction How gas procurement is achieved Sabine Pass Corpus Christi Establish counterparty / market liquidity Capacity contracted at…
  75. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 75
    Cheniere Continuing Supply Strategy Sabine Pass Currently testing Creole Trail compressor station/ reversal First test gas to terminal expected Summer 2015 Have acquired storage to balance loads/ upsets Plan to acquire short term…
  76. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 76
    Cheniere Marketing Meg Gentle Executive Vice President, Marketing
  77. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 77
    2014 Year in Review LNG market growth is constrained by supply, not by demand Net addition to installed liquefaction capacity = 15.6 mtpa 3 new liquefaction plants came on-line (Australia, Algeria, Papua New Guinea) 1 liquefaction…
  78. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 78
    Projected Future Changes in the LNG Market Steady demand growth Three large supply centers Shorter term contracting Flexibility Physical liquidity LNG market pricing Trading 3
  79. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 79
    Asia Pacific Gas Demand 2014 LNG Demand Japan Bcf/d (mtpa) 12 (88) Korea 5 (37) LNG Import Capacity 2014 = 47 Bcf/d 2025E = 70 Bcf/d China Consumption 170 Incremental 3 (20) 2014 = 66 Bcf/d LNG Need 2025E = 102 Bcf/d 2025E =…
  80. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 80
    Europe Gas Demand Domestic Production Consumption 2014 LNG Demand 2014 = 24 Bcf/d 2014 = 44 Bcf/d Bcf/d (mtpa) 2025E = 23 Bcf/d 2025E = 54 Bcf/d LNG Import Capacity Incremental 2014 = 20 Bcf/d LNG Need 2025E= 29 Bcf/d 2025E = +8…
  81. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 81
    Mexico, Central, and South America Gas Demand 2013 LNG Demand LNG Terminals (Bcf/d) Mexico Bcf/d (mtpa) Existing 0.7 (5) Under Construction Potential New Markets Planned El Salvador Panama Colombia Consumption Production 2013…
  82. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 82
    Middle East and Africa Gas Demand 2013 LNG Demand Consumption Production Bcf/d (mtpa) 2013 = 53 Bcf/d 2013 = 75 Bcf/d 2025 = 69 Bcf/d 2025 = 93 Bcf/d Kuwait 0.3 (2) LNG Import Incremental Capacity LNG Need 2013 = 1 Bcf/d 2025E…
  83. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 83
    Projected Global LNG Demand 438 mtpa by 2025 Demand forecasted to increase by 200 mtpa to 2025, a 5.7% CAGR average of 21 mtpa of new liquefaction capacity needed each year(1) Europe 30 63 89 2015 2020 2025 Asia 314 Americas…
  84. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 84
    Projected Firm Liquefaction Capacity Additions (mtpa) Nameplate Liquefaction Capacity 304 mtpa as of YE 2014 Asia Pacific 427 mtpa by YE 2020 Atlantic Basin Cove Point APLNG T2, PFLNG 1, mtpa MLNG Tiga T9 Ichthys T2, Prelude…
  85. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 85
    Need 100 mtpa of Additional Liquefaction FID which ones Project Country mtpa Targeted FID date Corpus LNG T1-3 USA 13.5 2015 Sabine T5-6 USA 9.0 2015 Freeport T3 USA 4.4 2015 Jordan Cove USA 6.0 2015 Elba Island USA 2.5 2015…
  86. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 86
    Prompt Month Brent Volatility Increased by 150% % Brent Implied Volatility 50 45 40 35 30 25 20 15 10 5 0 1M 2M 3M 6M 9M 1Y 18M 2Y 3Y 4Y 5Y 7Y 10Y Today 6 months ago 1 year ago 2 years ago Term structures of…
  87. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 87
    Brent: Mean Reversion 75 - 95 / Bbl Price /Bbl Rolling forward curve of BRENT CRUDE FUTURES 140 130 120 110 100 90 80 70 60 50 40 Aug-19 Apr-10 Apr-11 Apr-12 Mar-13 Mar-14 Mar-15…
  88. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 88
    Prompt Month HH Volatility Increased by 35% Henry Hub Implied Volatility % 50 45 40 35 30 25 20 15 10 5 0 1M 2M 3M 6M 9M 1Y 18M 2Y 3Y 4Y 5Y 7Y 10Y Today 6 months ago 1 year ago 2 years ago Term structures of…
  89. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 89
    HH: Falling Forward Curve Reflects Supply Expectations Price /MMBtu Rolling forward curve of NATURAL GAS FUTURES 8 7 6 5 4 3 2 1 0 Aug-19 Apr-10 Apr-11 Apr-12 Mar-13 Mar-14 Mar-15…
  90. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 90
    HH Index + Fixed Price is less volatile than Brent index Distribution of HH Indexed LNG and Brent Indexed LNG assuming equivalent means and current implied volatility HH Index + Fixed Component Brent Index /mmBtu 6.88 8.23…
  91. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 91
    Non Long-Term LNG Trade Increasing MTPA % SHARE 90 35% 80 Non Long-Term LNG 30% % of Total LNG Trade (right axis) 70 25% 60 50 20% 40 15% 30 10% 20 10 5% 0 0% 1995 1999 2003 2007 2011 Source: IGU LNG Report 2014…
  92. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 92
    37 mtpa of Contracted LNG to Expire 2018 2020 Source: Cheniere Research estimates based on public disclosures and some assumptions on contract start and end dates. 17
  93. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 93
    Shorter Term Contracting Increasing Liquidity Before 2025, over 2/3 of LNG trade expected to be based on LT contracts mtpa 2025 Demand Forecast 438 2013 Non Long-Term LNG Trade 77 Expiring LNG Contracts 127 U.S. Supply 100…
  94. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 94
    Global Natural Gas Market Hubs Europe rapidly transitioning 95 traded hubs and transits to hub-based gas trading in the U.S. & Canada Asia NBP Henry Hub Successful trading hubs - evolved from creating liquidity and…
  95. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 95
    NOV 20 SEP 20 JUL 20 MAY 20 HH v Brent v NBP: Financial Liquidity Comparison MAR 20 JAN 20 NOV 19 SEP 19 JUL 19 Open Interest Equivalent Cargoes of 160,000 m3 MAY 19 MAR 19 JAN 19 NOV 18 NBP SEP 18 JUL 18…
  96. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 96
    Portfolio Summary (mtpa) Planned Total Portfolio, 9 Trains 40.5 Financing Strategy (Long term FOB Sales) 31.8 Sold to date 28.2 Remaining 3.6 Marketing Strategy (Delivered to Market) 8.7 Long Term 2.9 Medium Term 2.9 Short…
  97. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 97
    Financing Strategy - Long term FOB Sales (28 mtpa sold) Contracted with Sabine Pass (mtpa) Contracted with Corpus Christi (mtpa) BG 5.5 5.0 1.5 Centrica 3.5 1.75 Total 2.0 3.5 EDF 2.25 0.77 0.77 0.76 3.5 383 EDP Gas…
  98. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 98
    Cheniere Marketing: Building a Portfolio Up to 9 mtpa to be delivered to market plus additional positions & assets Call options at Henry Hub Index to begin in 2016 5 year time charters on 3 LNG vessels to begin in 2015 and 2016…
  99. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 99
    Annual Gross Profit from 2 mtpa Volumes LNG Loaded Sabine Pass (Tbtu) 104 Assumptions LNG Delivered DES (Tbtu) 98 5 Henry Hub Price Cash Flows 15 LNG sales price, delivered at terminal Sales Total Revenue (MM) 1,466 6% loss of…
  100. APRIL 2015 INVESTOR DAY – Cheniere Energy, Inc. – slide 100
    Price Sensitivities MM Gross Profit at Varying Prices Observations LNG Sales Price, /MMBtu The intrinsic value of 104 8.00 10.00 15.00 20.00 million MMBtu of LNG from 2.00 382 577 1,066 1,555 Sabine Pass is 700 million Henry Hub…

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