LNG critical to global Global markets structurally The integrated Tellurian decarbonization short LNG; abundant low- model is the next cost U.S. natural gas supply innovation in U.S. LNG Natural gas is a complementary Global LNG demand…
Tellurian executive summary Tellurian announced 3.0 mtpa SPA with Gunvor Group(1) JKM/TTF netback price to U.S. Gulf Coast; 10-year definitive, binding agreement 1 Gunvor is the largest independent global trader of LNG volumes Under…
The integrated Tellurian model is the next innovation in U.S. LNG
Tellurian: fully integrated, pure-play LNG Low-cost, integrated business model: upstream gas production in Haynesville Basin, Driftwood pipeline and LNG terminal in SW Louisiana Pure-play, global gas producer: monetizing U.S.…
Tellurian management: U.S. LNG pioneers Tellurian management team responsible for developing 75% of current U.S. LNG capacity Tolling model SPA model Integrated model Pricing Tellurian management Tellurian management…
Netback pricing: the next evolution in U.S. LNG Offtake JKM/TTF netback pricing to U.S. Gulf Coast Upstream 10-year SPAs Destination market pricing, with optionality to Europe and Asia, attractive to broad set of global buyers…
Low-cost U.S. supply provides global gas arbitrage Selling into premium global gas market generates up to 4-5/mmBtu margin at current forward prices TTF (European LNG forward prices benchmark) 2-yr forward price: 12 Driftwood LNG…
Carbon prices supporting EU gas prices Higher carbon prices support higher natural gas demand in the power sector, lifting TTF prices in Europe TTF vs. ARA Coal + CO2 Premium (3-month moving average) COVID Forwards September 2020:…
Henry Hub-linked contracts stagnant, JKM rising Henry Hub-linked LNG volumes signed annually(1) JKM swaps cleared annually mtpa mtpa 30 160 45% 25 140 Short term market % of total 40% 120 20 No new Henry Hub-linked Annual…
Haynesville Basin: primed for consolidation Driftwood LNG Phase I feedgas requires 3% of total resource and 20% of current production from Haynesville Basin overview Haynesville operators(1) World-class resource base, with estimated…
Integration delivers climate advantages Upstream Driftwood pipeline Driftwood LNG Use green completion technology to Use the latest equipment, technology Designed and will be operated to be eliminate flaring and minimize and…
Driftwood LNG progress & catalyst roadmap Pre-FID work (shovel-ready) Premier site Commercialization & financing Fully-wrapped EPC contract Major permits secured Secure offtake FID Site prep & pre-EPC civil construction Issue…
Contact us Matt Phillips Social media VP, Investor Relations & Finance +1 832 320 9331 TellurianLNG matthew.phillipstellurianinc.com Johan Yokay Director, Investor Relations & Finance +1 832 320 9327…
Low-cost U.S. natural gas critical in supplying global LNG demand growth
Gas and LNG fastest growing fuels Annual increase in oil, gas and LNG consumption 7.1% Gas demand is growing at 2x 6.9% the rate of crude demand growth LNG demand is growing at 5x the rate of crude demand 3.6% growth 3.0%…
Structural factors driving LNG demand Region YTD growth Comments Improved gas infrastructure penetration increases demand. Increased industrial China +29% demand from economic recovery & heating demand from consumers. Government…
Asian LNG demand up 10% this year China/JKT (Japan-Korea-Taiwan) LNG imports up 29%/5%, respectively, through April and Indian imports fell due to higher spot prices Chinese LNG imports Indian LNG imports JKT LNG imports million…
Forward natural gas prices rise globally Asian LNG JKM forward curve European natural gas TTF forward curve /mmBtu /mmBtu 2-year forward price 2-year forward price 12 +73% since April 2020 12 +70% since April 2020 10 10 8 8 6…
Lack of LNG investment = widening price Global liquefaction capacity additions (mtpa) 30 mtpa capacity additions 146 mtpa capacity additions 57 mtpa capacity additions Limited capacity additions(1) 1.6% per annum 8.3% per annum 2.5%…
New LNG capacity required Capacity required under various demand scenarios Range of third-party 800 demand scenarios Growth rate(1) Capacity required 700 by 2035(2) High: 4.1% p.a. 280 mtpa Capacity (mtpa) 600 Low: 3.3% p.a.…
LNG critical to global decarbonization
Net zero targets favor natural gas Share of global carbon emissions (%) 80% of global LNG demand represented below: 0% 10% 20% 30% 40% China Pledged net-zero by 2060, with peak US emissions prior to 2030 India Russian Federation…
Carbon reduction: the U.S. template works US power industry has avoided 800mtpa of CO2 in US US LNG exports avoid 335mtpa of CO2 globally 2,500 US power CO2 emissions are down 567mm tonnes 335mm tonnes Gas 40% since 2007 CO2 CO2…
Carbon reduction is exportable US LNG displaces significant CO2 versus coal power equivalent 26 mmt CO2 emissions avoided LNG train Equivalent to Norway, Switzerland total CO2 (5 mtpa) emissions(1) 142 mmt CO2 emissions…
Air quality improvements with LNG imports Natural gas produces 64% less air particulate matter than does coal and 73% less than does wood biomass Improving air quality is a vital initiative for industrializing Gasifying the energy mix…
China decarbonization requires natural gas Even with 2 major Russian pipelines and growing domestic output, LNG imports could reach over 200 mtpa Chinas natural gas supply vs. demand (Bcm) Targeting net-zero emissions by 800 2060…
Appendix: Driftwood LNG details
Unmatched LNG development experience Tellurians management team has 80 years of combined LNG development experience globally 79 mtpa Charif Souki Executive Chairman of the Board Co-founder of Tellurian Founded Cheniere in 1996,…
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…
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