LNG critical to global Global markets structurally Tellurians integrated 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 has…
The integrated Tellurian model is the next innovation in U.S. LNG
Tellurian executive summary Tellurian has sold all the necessary offtake for Driftwood Phase I (two-plants/11 mtpa)(1) Definitive, binding agreements with Gunvor, Vitol and Shell for 9.0 mtpa 1 The addition of Shell brings the worlds…
Tellurian: fully integrated, pure-play LNG Low-cost, integrated business model: upstream gas production in Haynesville(1), Driftwood pipeline and LNG terminal in SW Louisiana Pure-play, global gas producer: monetizing U.S. domestic…
Phase I Driftwood LNG: sold out mtpa 2 3 11 3 3 Total capacity 2 plants carried volumes Credit Unrated Investment grade A+/Aa2 rating 7
Preparing Driftwood LNG site for construction Recent Driftwood LNG development activities Site visit with key Driftwood LNG partners Exercised long-term lease option with Port of Lake Charles in June 2021 20-year term lease…
Illustrative Phase I cash flows at JKM strip Upstream Market gas production Phase I development cost 12 billion 12 billion LNG sales price(1) (JKM less transportation, /mmBtu) 12 12 Gas sourcing (/mmBtu) - 4 - 2 Liquefaction…
Upstream and banks to fund Phase I Illustrative funding structure Steps to NTP Phase 1 Sources and Uses Tellurian LNG Production Acquire upstream Production 5.5 mtpa 1 bn. FCF resources 550 bcf/yr 1 bn. FCF Estimated total 5-10…
Haynesville Basin: primed for consolidation Driftwood LNG Phase I feedgas requires 2% of total resource and 13% of current production from Haynesville Basin overview Haynesville operators(1) World-class resource base, with estimated…
Low-cost U.S. supply provides global gas arbitrage Access to premium global gas market generates up to 9/mmBtu margin at current forward prices LNG forward prices TTF (European benchmark) 18 1-yr forward price: Driftwood LNG JKM…
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 (/mmBtu) COVID Forward (3-month moving average) ARA coal…
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…
FID expected in 1Q22 Project milestones Status EPC & Regulatory Fully wrapped, lump-sum turnkey contract; all major permits secured SPAs 9 mtpa secured for Phase I, no additional SPAs required for Phase I Upstream Process…
Contact us Matt Phillips VP, Investor Relations & Finance +1 832 320 9331 matthew.phillipstellurianinc.com Johan Yokay Director, Investor Relations & Finance +1 832 320 9327 johan.yokaytellurianinc.com Joi Lecznar EVP,…
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 +24% demand from economic recovery & heating demand from consumers. Government…
Asian LNG demand up 11% this year China/JKT (Japan-Korea-Taiwan) LNG imports up 24%/9%, respectively, through July 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 +83% since July 2020 +100% since July 2020 Source: NYMEX and ICE…
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…
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…
Appendix: Driftwood LNG details
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…
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,…
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…
Tellurian Phase I unlevered return scenarios JKM index price (/mmBtu) 8.00 10.00 12.00 14.00 Gas production & liquefaction opex (3.00) (3.00) (3.00) (3.00) (/mmBtu) Margin 3.25 5.25 7.25 9.25 (/mmBtu) Annual cash flow(1)…
Loading...
