J.P. Morgan 2020 Energy, Power & Renewables Conference June 16, 2020
Tellurian value proposition (Nasdaq: TELL) Developing a global natural gas business around Driftwood LNG Our business Develop Driftwood LNG: a 27.6 mtpa LNG export terminal in Louisiana Backed by a visionary management team that…
LNG market clears amid demand shock COVID-19 has created market turbulence but recent KPIs indicate resilience What to watch for KPI Global demand: LNG demand resumes growth trend Chinese LNG demand is recovering after COVID-19…
Bright spots emerge in China and Europe Chinese demand spiked 24% in May as lockdowns lifted and Europe is absorbing LNG for storage Chinese LNG imports European LNG imports million tonnes/month million tonnes/month 12 12 10 10…
LNG trade growing faster than capacity Monthly global LNG trade and capacity LNG production capacity at year end million tonnes/month Expected % increase over prior year end million tonnes/month production capacity 39 2020E export…
100 mtpa additional construction needed Recent demand growth rates imply the world will have LNG capacity constraints by 2021 mtpa Liquefaction capacity required by 2025(1) 900 800 9.3% p.a. growth rate 8.0%(2) 175 mtpa 700…
U.S. gas to remain competitive worldwide Almost 50 years' worth of natural gas resources are available for less than 3/mmBtu(1) Associated Dry gas gas resources, resources, Tcf 800 Tcf economic sub-3 Tcf breakeven from dry…
Driftwood LNG terminal Driftwood LNG terminal Land 1,000 acres near Lake Charles, LA Capacity 27.6 mtpa Up to 20 trains of 1.38 mtpa each Trains Chart (GTLS) heat exchangers BH LM6000 PF+ gas turbines 3 storage tanks Storage…
Integrated platform delivers certainty of low-cost LNG Gas supply & midstream Recent U.S. oil & gas price volatility underscores importance of cost certainty Waha and Henry Hub price fluctuations show basin diversity is key for…
Driftwood expects to deliver LNG FOB at 3-4/mmBtu Integrated operations deliver lower costs Gas sourcing 2.00/mmBtu + 0.75/mmBtu LNG plant + pipeline(1) 3.50/mmBtu Average cost on the water Debt service(2) + 0.75/mmBtu…
Positioned to deliver 6-8/sh of cash flow (1) Tellurian ownership structure(2) Illustrative cash flow calculation to Tellurian 13.6 mtpa 49% LP ownership mmBtu 52 100% GP ownership x conversion Driftwood Holdings x 3.50…
On path to deliver LNG from Driftwood Fully- FERC & DOE Premier site wrapped EPC Financing Construction approval contract Complete Value creation catalysts LNG market recovery from COVID-19 with JKM approaching 5/mmBtu…
Investor focus areas post COVID-19 Market is making progress on several fronts after COVID-19 disruption LNG market implications Commercial & competitive Financial Clear benefit of integrated Improved liquidity: 50 mm LNG demand…
Key investment highlights Driftwood LNG and pipeline are shovel ready, all permits secured Engineering 30% complete, 150 mm invested At full operations, projected 6-8/share in cash flow(1) Implied equity value of 15-20/share at…
Driftwood project & financial details 17
Driftwood LNGs ideal site for exports Access to pipeline infrastructure Access to power and water Support from local communities Site size over 1,000 acres Insulation from surge, wind and local populations Artist rendition…
Bechtel LSTK secures project execution Driftwood EPC contract costs ( per tonne) 710 Increase from price refresh Leading LNG EPC contractor 560 44 LNG trains delivered to 18 500 510 customers in 9 countries 390 30% of global LNG…
Pipeline network 1 Driftwood Pipeline(1) Capacity (Bcf/d) 4.0 1,000 miles of pipe Cost ( billions) 2.3 Length (miles) 96 Diameter (inches) 48 Compression (HP) 274,000 Status FERC approval complete 2 Haynesville Global Access…
Driftwood pipeline: fully permitted Driftwood pipeline route map CS 03 Mamou 96-mile, up to 48 CGT diameter pipeline Transco T E X A S Three compressor Trunkline Texas Gas TETCO 2 stations totaling 274,000 LOUISIANA ANR…
Value to Tellurian Inc. Every 1.00 reduction in gas costs or increase in LNG price adds 2.16/share in cash flow in 5-plant case Base case 3 Plants 5 Plants USGC netback Cost of LNG(1) Margin Cash flows(2)(3)(4) (/mmBtu) (/mmBtu)…
Tellurian agreements with Total Driftwood equity investment and SPA Tellurian Marketing investment in Driftwood On July 10, 2019, Total agreed to make a 500 million Tellurian Marketing to purchase an equity interest(2) in equity…
Contact us Matt Phillips Social media Director, Investor Relations & Finance +1 832 320 9331 TellurianLNG matthew.phillipstellurianinc.com Joi Lecznar SVP, Public Affairs & Communication +1 832 962 4044…
LNG market updates 26
Global energy needs require natural gas The shifting landscape of energy consumption Drivers of shifting landscape 8 Tonnes oil equivalent/capita 35% Non-OECD energy consumption growth rate was 31% 7 30% 13x that of OECDs over the…
China & India: 90 mtpa growth potential LNG demand growth (2019-2025) Key growth drivers mtpa Infrastructure: 2x growth in Indias pipeline grid by 2025 2x growth in Indias regas capacity by 2025 1.5x growth in Chinas pipeline grid…
Indias targets suggest even higher gas use India natural gas demand primary sources Indias gas demand drivers mtpa (1) Prime Minister Modi has set a target of 15% for Incremental supply required for 15% target natural gas share of…
India is rapidly building out gas infrastructure Sharp increase in LNG and gas-related infrastructure will tap into significant latent gas demand Indias emerging regas & gas transport infrastructure Indias regasification capacity…
New Asian markets grow 41 mtpa by 2025 Emerging markets could add the equivalent of another South Korean market by 2025 LNG demand by region Bangladesh, Malaysia, Pakistan, Thailand: mtpa 32% gas market penetration, declining 600…
JKM growing as price reference for Asia Spot and short-term LNG trade JKM swaps cleared Total trade (mtpa) mtpa equivalent Share of total trade (%) 106 119 34% 99 32% 78 75 70 68 27% 35 65 28% 59 29% 28% 28% 25% 10 0…
ESG 33
Environmental and social leadership Driftwood LNG project expected to reduce lifecycle carbon emissions and support local communities Lifecycle emission reduction Sustainable development Social engagement Provide an outlet for…
LNGs role in the energy transition Today: Reduce carbon intensity, improve air quality Future: Net zero carbon emissions Increasingly cost-competitive with coal Reduces carbon emissions by up to 50% Reduces SOx, NOx and particulate…
Loading...
