CHENIERE ENERGY
Cheniere Energy
Corporate Presentation
April 2010
 
 

 
 
Safe Harbor Act
1
This presentation contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of
the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements, other than statements of historical facts, included herein are “forward-looking statements.”
Included among “forward-looking statements” are, among other things:
§ statements that we expect to commence or complete construction of each or any of our proposed liquefied natural gas, or LNG, receiving terminals by certain dates, or at all;
§ statements that we expect to receive authorization from the Federal Energy Regulatory Commission, or FERC, to construct and operate proposed LNG receiving terminals by a
 certain date, or at all;
§ statements regarding future levels of domestic natural gas production and consumption, or the future level of LNG imports into North America, or regarding projected future
 capacity of liquefaction or regasification facilities worldwide regardless of the source of such information;
§ statements regarding any financing transactions or arrangements, whether on the part of Cheniere or at the project level;
§ statements relating to the construction of our proposed LNG receiving terminals, including statements concerning estimated costs, and the engagement of any EPC contractor;
§ statements regarding any Terminal Use Agreement, or TUA, or other commercial arrangements presently contracted, optioned, marketed or potential arrangements to be performed
 substantially in the future, including any cash distributions and revenues anticipated to be received; statements regarding the commercial terms and potential revenues from activities
 described in this presentation;
§ statements regarding the commercial terms or potential revenue from any arrangements which may arise from the marketing of uncommitted
 capacity from any of the terminals, including the Creole Trail and Corpus Christi terminals which do not currently have contractual commitments;
§ statements regarding the commercial terms or potential revenue from any arrangement relating to the proposed contracting for excess or expansion
 capacity for the Sabine Pass LNG Terminal described in this presentation;
§ statements that our proposed LNG receiving terminals, when completed, will have certain characteristics, including amounts of regasification and
 storage capacities, a number of storage tanks and docks and pipeline interconnections;
§ statements regarding Cheniere, Cheniere Energy Partners and Cheniere Marketing forecasts, and any potential revenues, cash flows and capital expenditures which may be derived
 from any of Cheniere business groups;
§ statements regarding Cheniere Pipeline Company, and the capital expenditures and potential revenues related to this business group; statements
 regarding our proposed LNG receiving terminals’ access to existing pipelines, and their ability to obtain transportation capacity on existing pipelines;
§ statements regarding possible expansions of the currently projected size of any of our proposed LNG receiving terminals;
§ statements regarding the payment by Cheniere Energy Partners, L.P. of cash distributions;
§ statements regarding our business strategy, our business plan or any other plans, forecasts, examples, models, forecasts or objectives; any or all of which are subject to change;
§ statements regarding estimated corporate overhead expenses; and
§ any other statements that relate to non-historical information.

These forward-looking statements are often identified by the use of terms and phrases such as “achieve,” “anticipate,” “believe,” “estimate,” “example,” “expect,” “forecast,” “opportunities,”
“plan,” “potential,” “project,” “propose,” “subject to,” and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable,
they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which
speak only as of the date of this presentation. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors,
including those discussed in “Risk Factors” in the Cheniere Energy, Inc. Annual Report on Form 10-K for the year ended December 31, 2009, which are incorporated by reference into this
presentation. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these ”Risk Factors”. These forward-looking
statements are made as of the date of this presentation, and we undertake no obligation to publicly update or revise any forward-looking statements. 
 
 

 
 
Cheniere Energy
Marketing
Sabine Pass LNG (SPLNG) (90.6%)
Freeport LNG (30%)
Approved Permits:
Creole Trail LNG
Corpus Christi LNG
Creole Trail P/L (100%)
Approved Permits:
Creole Trail P/L Phase II
Corpus Christi P/L
2.0 Bcf/d SPLNG TUA
MSPAs with major
LNG suppliers,
merchants, utilities
Isle of Grain Put
Option 12 Cargoes/yr
Over 100 domestic
NAESBs and ISDAs
Pipelines
Terminals
Cheniere Business Segments
 
 

 
 
TUA
Capacity
2010 Full-Year
Payments ($ in MM)
Total LNG USA
Chevron USA
Cheniere Marketing
1.0 Bcf/d
1.0 Bcf/d
2.0 Bcf/d
 $123
 $128
 $252
Aerial view of Sabine Pass LNG
3
Sabine Pass LNG
Cheniere Energy, Inc. 90.6%
§ Vaporization
  ~4.3 Bcf/d peak send-out
§ Storage
  5 tanks x 160,000 cm (16.9 Bcfe)
§ Berthing / Unloading
  Two docks
  LNG carriers up to 266,000 cm
  Four dedicated tugs
§ Land
  853 acres in Cameron Parish, LA
§ Accessibility - Deep Water Ship Channel
  Sabine River Channel dredged to 40
 feet
§ Proximity
  3.7 nautical miles from coast
  22.8 nautical miles from outer buoy
§ LNG Export Licenses Approved
 
 

 
 
§ Size:
  2.0 Bcf/d
§ Diameter:
  42-inch diameter
§ Cost:
  ~$560 million first 94 miles
§ Initial interconnects:
  4.1 Bcf/d of interconnect
 capacity
§ Provides optimal market access for LNG from the Sabine Pass terminal
§ First 94 miles complete and in-service, additional 58 miles permitted
Creole Trail Pipeline
Cheniere Energy, Inc. 100%
 
 

 
 
Sold - Terminal Use
Agreement (TUA)
Capacity
(Bcf/d)
Estimated Annual
Distribution to Cheniere*
Conoco
Dow
Mitsubishi
0.90
0.50
0.15
$8 - $12MM
 
*Quarterly cash distributions commenced in 1Q09 and are subject to Freeport board approval.
April 2009
Freeport LNG Development, L.P.
Cheniere Energy, Inc. 30%
 
 

 
 
Strategic Focus
§ Commercial - monetize 2 Bcf/d regas capacity at
 Sabine Pass receiving terminal held by Cheniere
 Marketing
  International LNG marketing efforts
  Seek long-term TUAs, LNG purchase/sale agreements
  Purchase spot cargoes available in the Gulf of Mexico
§ Financial - manage liquidity
 
 

 
 
J.P. Morgan Arrangement
§ Cheniere and J.P. Morgan join LNG marketing efforts
§ CMI provides all services related to:
   sourcing deals and negotiating contracts, purchasing,
 transporting, receiving, storing, regasifying and selling cargoes
 of LNG and regasified LNG on an exclusive basis
§ JPM provides credit support
§ JPM pays a fixed fee and may pay additional fees dependent
 upon gross margins achieved
§ JPM acquired CMI’s commercial inventory as of April 1, 2010
§ JPM has option to sign 0.5 Bcf/d TUA at $0.32/MMBtu
 
 

 
 
Source: Poten
24.2
15
7
2
Bcf/d(e)
Supply and Demand Trends
 
 

 
 
Source: GIIGNL, Cheniere Research, 2009e
Skikda
Explosion
Schedule slippage,
underperformance
FMs, Maintenance
YoY Change in Supply Trends
Well-below Average for Second Year
 
 

 
 
Source: Poten
Supply growth masked
by production losses
Traditional markets offset
by traded markets

YoY Changes in LNG Supply and Demand
 
 

 
 
2009 ‘Anomaly’
Europe Oversupplied but LNG Imports Up
Recession induced demand reduction ~4 Bcf/d
Med
NWE
+ 109 %
(+145 cargoes)
Note: NWE = UK, BE, + Montoir
- 1.5%
(-7 cargoes, despite
addition of Rovigo in
Italy)
Source: Waterborne
 
 

 
 
Source: GIIGNL. Cheniere Research , 2009 Estimated
Growth Trend in Diversion of Flexible Term Supply
LNG Spot Trade
 
 

 
 
Source: GIIGNL. Cheniere Research , 2009e
Spot Concentrated in Atlantic Traditionally
Rapid Shift to Asia and Back
Extreme Price Movements
$20/MMBTU
$7/MMBTU
Spot Buying By Region
 
 

 
 
Traded
Liquid
Markets
Loose
Gradual Tightening
Loose
Source: GIIGNL, Cheniere Research , 2009e
Spot LNG By Destination Region
 
 

 
 
Source: Cheniere Research
Firm Liquefaction Capacity Additions
 
 

 
 
Annualized*
($ in MM)
Disbursements
§ Cheniere Marketing TUA @ Sabine Pass $252
§ G&A       30-40
§ Pipeline & tug services   10
§ Other, incl adv tax payments    3-5
§ Debt service   44
$55 - 65
*Estimates represent a summary of internal forecasts, are based on current assumptions and are subject to change. Actual
 performance may differ materially from, and there is no plan to update the forecast. See “Safe Harbor” cautions. Estimates
 exclude earnings forecasts from operating activities.
Net cash outflow
Estimated Future Cash Flows
Cheniere Energy, Inc.
Receipts
§ Freeport investment    $8-12
§ Distributions from CQP   254
§ Management fees from CQP   19
 
 

 
 
Annualized*
($ in MM)
Disbursements
§ Operating Expenses    $34
§ Management Fees    19
§ Debt Service    165
$285
*Estimates represent a summary of internal forecasts, are based on current assumptions and are subject to change.
Actual performance may differ materially from, and there is no plan to update the forecast. See “Safe Harbor” cautions.
Available Cash
Distributions to Unitholders
$281
Estimated Future Cash Flows
Cheniere Energy Partners
Receipts
§ TUA Customers    $503
 
 

 
 
Public Unit holders
9.4% LP Interest
Cheniere Energy
Investments, LLC
Sabine Pass LNG-GP, Inc.
Sabine Pass LNG, L.P.
Sabine Pass LNG-LP, LLC
100% Ownership Interest
100% Ownership Interest
100% Ownership Interest
100% LP Interest
Non-Economic GP Interest
 
100% Ownership Interest
Cheniere LNG Holdings, LLC
$205 mm 2.25% Convertible Senior Unsecured Notes due 2012
 
$550 mm 7.25% Senior Secured Notes due 2013
$1,666 mm 7.50% Senior Secured Notes due 2016
88.6% LP Interest
100% of 2% GP Interest
NYSE Amex US: LNG
NYSE Amex US: CQP
3
$400 mm 9.75% Term Loan due 2012
$294 mm 12.0% Convertible Senior Secured Notes due
2018
Note: Balances as of December 31, 2009.
Organizational Structure