Tellurian Inc. Corporate presentation November 2021
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 upstream: capitalizing on current gas price environment Tellurian continues to generate value from existing acreage with a one rig drilling program 1 2022E exit rate production forecast of 220…
Tellurian Production upstream performance (mmcf/d) TELL Net Production 2021 Highlights 140 129 Invested 22 mm to date to drill four new wells 120 Year-end exit rate production expected to 100 reach 70 mmcf/d(1) 2021 annual…
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…
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 9
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 14 JKM 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 and…
Global energy crisis: higher for longer Haphazard decarbonization planning has created a structural shortage for reliable and clean energy Underinvestment in energy resulting in increased gas prices driving political change Natural…
Low-cost U.S. supply provides global gas arbitrage Access to premium global gas market generates up to 12-16/mmBtu margin at current forward prices /mmBtu 35.00 TTF (European 12-month increase in global gas prices benchmark) 30…
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) 35 ARA…
Upstream and banks to fund Phase I Illustrative funding structure Steps to NTP Phase 1 Sources and Uses Tellurian LNG Production Provide equity Production 5.5 mtpa contribution including and/or 1 bn FCF potential upstream…
Notice to Proceed 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…
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 Gas demand is growing at 2x the rate of crude demand 6.7% growth LNG demand is growing at 5x 5.4% the rate of crude demand growth 4.0%…
Structural factors driving LNG demand Region YTD growth Comments Improved gas infrastructure penetration increases demand. Increased industrial China +22% demand from economic recovery & heating demand from consumers. Government…
Asian LNG demand up 10% this year China/JKT (Japan-Korea-Taiwan) LNG imports up 22%/9%, respectively, through September 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 40 +215% since July 2020 40 +220% since July 2020 35 35 30 30…
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 Charif Souki 79 mtpa Executive Chairman of the Board Co-founder of Tellurian Founded Cheniere in…
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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