Exhibit
99.1
1
Credit Suisse Energy Summit February 2008 CHENIERE ENERGY, INC. (Gp:) *Corpus
Christi LNG, LLC Cheniere Energy, Inc. 100% *Artist’s Rendition (Gp:)
*Creole Trail LNG, L.P. Cheniere Energy, Inc. 100% *Freeport LNG
Development, L.P. Cheniere Energy, Inc. 30% * Sabine Pass LNG,
L.P. Cheniere Energy Partners, L.P. Cheniere Energy, Inc.
91%
2
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, liquifaction utilization or total monthly
LNG
trade 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 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 or the Indexed Purchase Agreement (“IPA”) or LNG spot purchase examples
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 and Cheniere
Marketing forecasts, and any potential revenues 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 the Cheniere Southern Trail Pipeline, and its potential
business opportunities; 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, 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, 2006, 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. Safe Harbor Act
3
Cheniere Marketing Asset Development Partnership Interests Sabine Pass
LNG 4.0 Bcf/d LNG Terminal Cheniere Energy Partners,
L.P. (AMEX:CQP) 90.6% Interest (GP & LP units) Creole Trail LNG
Terminal Creole Trail Pipeline Corpus Christi LNG Terminal
Freeport LNG Development, L.P. (Freeport LNG Terminal) 30% LP Interest Cheniere
Southern Trail Pipeline (Proposed Pipeline)
4
Freeport LNG Development, L.P. Cheniere Energy, Inc. 30% Freeport LNG
Construction Site August 2007 TUA Contracts totaling 1.55 Bcf/d Conoco 0.90
Bcf/d Dow 0.50 Bcf/d Mitsubishi 0.15 Bcf/d Operational in 2008 Facility
ownership: Cheniere (30%), M. Smith (45%), Contango (10%) and Dow
(15%) Contango recently announced an agreement to sell their 10%
interest to an Asian utility for $68 million Freeport LNG has obtained $1.1
billion debt to fund construction Cheniere expects to receive annual cash
receipts of $15mm
5
Cheniere Energy Partners, L.P. (AMEX: CQP) Sabine Pass LNG,
L.P. Cheniere Energy, Inc. 90.6% Sabine Pass Construction Site –
January 2008 4 Bcf/d capacity contracted at Sabine Pass facility resulting
in
annual revenues of approximately: $256 MM from CVX and Total ~$256 MM from
Marketing Operating costs, debt service and common unit holder distributions
are
estimated to be $245 MM to $255 MM* Annual distribution is $1.70 per unit
and
will be paid to all unit holders beginning mid 2009** Estimated construction
costs are $1.5 B * Estimate for 2010 full year basis **
Currently CQP is paying $1.70 per unit to common unit
holders. Distributions to GP and subordinated
units expected to reach $1.70 per unit by 2H09.
6
Next Generation of Terminals Including Some Terminals Under Construction
Higher
construction costs: $1 billion for 1 Bcf/d Utilization constraints Operational
Marine access Pipeline takeaway Storage Market size and access Affects regional
price basis Seasonality $0.32 per MMBtu TUA is a thing of the
past
7
Sabine PL Targa Transco Gulf South Trunkline Jefferson Island Storage Sabine
Pass LNG Terminal Project Creole Trail LNG Terminal Project Henry Hub Varibus
NGPL Transco Bridgeline Tennessee Florida Gas Creole Trail Pipeline Liberty
Storage
Starks Storage Hackberry Storage Texas Eastern Gulf Coast
Markets Northeast Markets Southeast Markets Midwest / Great Lakes Markets
Connects with Henry Hub Gulf of Mexico 4Q 2007 ANR Texas Gas Transco Florida
Gas
Columbia Gulf Cypress Egan Storage Pine Prairie Energy Center
Tennessee 2Q 2008 M.P. 58 Creole Trail – M.P. 58 Creole Trail – Phase II 7
Potential Pipeline Interconnects: Creole Trail Pipeline to M.P. 58 Estimated
Cost: $500-550 MM Expected in-service: 2Q 2008 Capacity: 2
Bcf/d
8
Fuel Efficiency Projects Projects include installation of waste heat recovery
units and ambient air vaporizers Waste heat recovery utilizes waste heat
from
gas turbine generator exhaust to heat water for use in the submerged combustion
vaporizers Ambient air vaporizers reheat LNG without using fuel Proposed
projects would result in fuel savings, which would allow for partial
monetization of the 2% LNG retained Savings depends on LNG throughput at
the
terminal Savings will also depend on number of ambient air vaporizers that
can
be effectively installed Estimated to save potentially 50-75% of the 2% LNG
retainage Estimated project completions Waste heat recovery: 2010
Ambient air vaporizers: 2010-2011
9
Length: 330 to 400 miles Diameter: 36-inch & 42-inch
segments Held non-binding open season, continuing to negotiate with respondents
Initiating permitting: NEPA pre-filing Estimated In-service: as early
as mid-2010 Southern Trail Pipeline Provide Southeast markets with incremental
transportation capacity accessing new and existing LNG gas supply in and
around
Louisiana; nearly 10 Bcf/d regas capacity by 2010 Connect to new
electric generation in Florida, with an estimated 1 Bcf/d of incremental
demand
10
LNG Fundamentals Value of Marketing
11
New Liquefaction Competes for Market Share Source: CERA, 2006 Atlantic Basin
12
Bcf/d ME Gulf 11 Bcf/d Asia Pacific 13 Bcf/d 2005 Europe 4.7 Bcf/d
2005 12.3 Bcf/d 2005 NA 1.8 Bcf/d (Gp:) 2010 Liquefaction Capacity
(Gp:) 2005 Consumption 5 15 25 35 45 36 23 24 26 30 35 Bcf/d Liquefaction
Capacity Existing Liquefaction Under Construction Proposed Liquefaction 2005
2006 2007 2008 2009 2010
12
Constraint is not Regasification but Natural Gas Consumption Source: GIIGNL;
Waterborne LNG; Cheniere Research Regasification capacity reflects
seasonal variations Bcf/d Asia Europe North America ¹ Average LNG imports ²
Year-end capacity ³ Average LNG imports as percentage of year-end capacity *
2010 capacity equals existing plus announced construction to be completed
by
year-end 2010
13
Demand Seasonality will Impact Flows Source: IEA 2006 Demand 0 5 10 15 20
25 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Belgium Spain France
UK US
GC Bcf/d
14
European Storage: 2007 vs 5yr Avg Source: PIRA 0 10 20 30 40 50 60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcm 2002-2006 Avg
2007
15
307 73% 143 72% 196 64% 101 67% 204 66% 241 65% European Gas Storage Inventory
-
Bcf Inventory as of Jan 14, 2008 Source: GSE 1/14/08
16
Europe Heating Degree Days Colder than normal temperatures in Spain and France
are offset by warmer UK temps Cumulative Heating Degree Days 0 200 400 600
800
1000 1200 1400 10/30/2007 11/5/2007 11/11/2007 11/17/2007 11/23/2007 11/29/2007
12/5/2007 12/11/2007 12/17/2007 12/23/2007 12/29/2007 1/4/2008 1/10/2008
1/16/2008 1/22/2008 1/28/2008 DD Celsius Current Last yr 20yr
Norm
17
Pipeline Capacity Increasing in Europe Transatlantic LNG Deep and liquid
market
with large storage and summer peak demand will balance global LNG supply
Pipeline gas supply into Europe will compete to push LNG to higher value
markets
(Gp:) New Pipeline (Gp:) Existing Pipeline (Gp:) Expansion
18
1.5 1.5 1.5 1.5 1.8 1.8 1.8 1.6 0.5 0.5 0.5 0.5 2.0 2.0 2.0 2.0 0.4 0.4 0.4
0.4
1.3 2.3 4.9 0.2 0.2 0.2 0.3 9.2 11.7 7.9 6.6 - 2 4 6 8 10 12 2007 2008 2009
2010
Bcf/d Nigeria Yemen Qatar Oman Abu Dhabi Trinidad Norway Eq. Guinea Egypt
Algeria More LNG is Becoming Flexible Flexible LNG to the Atlantic
Basin by Producing Country 12 Bcf/d of LNG with access to
Atlantic Basin will have destination flexibility by 2010 Additional volumes
could become flexible should the contract parties agree Source: Cheniere
Energy
Research
19
Flexibility, Optionality, Profitability Atlantic
Basin Market Position (Gp:) Sabine Pass LNG Terminal (Gp:)
Cheniere Marketing Office (Gp:) USGC LNG Supply Route (Gp:) LNG Diversion
Route
20
Worldwide Liquefaction Capacity Source: GIIGNL; Poten, Cheniere
Research 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Jan Feb Mar
Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2004 2005 2006 Bcf/d
21
Worldwide Liquefaction Capacity - Growth - 5 10 15 20 25 30 35 40 45 Q1 Q2
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Q4
2004 2005 2006 2007 2008 2009 2010 Bcf/d Source: Cheniere Research +
10 Bcf/d
22
2010 Annual Balance - Bcf/d Global Liquefaction Capacity 36 Estimated LNG
Delivery 90% 32 Asian Consumption 16 European Consumption 6
Remaining for North America 10 Source: Cheniere Research
23
1 Bcf/d by 2010 86% of Henry Hub 94% - 65 cents (GdF transaction) Seek to
capture portion of redirect rights Cheniere Marketing Strategy Term
Contracts: Indexed Purchase Agreements (IPA) Spot Market: 1 Bcf/d portion
Seek
to capture arbitrage value of HH vs NBP Note: The above outlines the current
strategy of Cheniere Marketing, which is subject to change. Please
refer to Page 2 of this presentation. Optimize value of capacity at Sabine
Pass
LNG terminal
24
Cheniere Growth Strategy Continue asset development: terminals and
pipelines Develop a balanced supply portfolio for Cheniere Marketing
between long-term IPA’s and exposure to the spot, option and short-term markets
to optimize seasonality Pursue acquisitions for Cheniere Energy Partners,
L.P.
(AMEX: CQP)
