Exhibit
99.1
Cheniere
Energy Partners December 2007 CHENIERE ENERGY PARTNERS, L.P. (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%
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 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
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
Louisiana Natural Gas Header, 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
Value
Drivers Cheniere Marketing Asset Development Partnership Interests Sabine
Pass LNG 4.0 Bcf/d LNG Terminal Cheniere
Energy Partners, L.P. AMEX:CQP 91% Interest (GP
& LP units) Creole Trail LNG Terminal Creole
Trail Pipeline Corpus Christi LNG
Terminal Freeport LNG Development, L.P. (Freeport LNG
Terminal) 30% Equity Interest Louisiana Natural
Gas Header (Proposed Pipeline)
CQP
Investment Highlights Body: Stable, 20-year cash flows under take-or-pay
contracts Strong natural gas fundamentals support increased LNG imports Largest
LNG receiving terminal in North America when complete Fully-funded construction
costs; leading EPC contractors Focusing on strategic development projects Strong
sponsorship from parent supported by>90% ownership Experienced management
team
Sabine
Pass LNG 4 Bcf/d Receiving Terminal Sabine Pass Construction Site
November 2007 Body: 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 Berthing/Unloading 2 docks LNGCs up to 265,000
cm 4 dedicated tugs Storage Phase I: 3 x 160,000 cm (10.1 Bcfe) Phase
II: 2 x 160,000 cm (6.7 Bcfe) Vaporization Phase I: 2.6 Bcf/d Phase
II: 1.4 Bcf/d Potential Pipeline Access (Interstate) Access to NE,
MW, SE, & Mid-Atlantic markets 14 Bcf/d Within 150 Miles
Regional Market - Strong Gas Demand Port Arthur, Beaumont, Orange,
Lake Charles
Sabine
Pass Terminal Update November 2007
Key
Milestones Q3 2008 Expected completion of Phase 1 (2.6
Bcf/d) April 2009 Expected start of Total TUA payments (
$125 million per year) July 2009 Expected start of Chevron
TUA payments ( $125 million per year) Q2
2008 Expected start of Cheniere Marketing TUA payments ($5 million
per month) 2008 January 2009 Expected start of
full Cheniere Marketing TUA payments ( $250 million per year) Q2
2008 Expected start of Phase 1 commercial
operation Q3 2009 Expected completion of Phase 2
Stage 1 (4.0
Bcf/d) 2009 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Agreements
Provide Stable Cash Flows (1) Fees do not vary with the actual
quantity of LNG processed; tax reimbursement not included in the fees. (2)
No
inflation adjustments. (3) Subject to annual inflation adjustment. (4) Subject
to terminal completion. (5) Cheniere Marketing TUA payments for 2008
will be $5.0 million per month and will increase to $0.32/MMBtu starting
1/1/09. 20-year Terminal Use Agreements provide visibility for cash
distributions. (Gp:) Total LNG (Gp:) Chevron USA (Gp:) Cheniere Marketing
(Gp:)
Capacity (Gp:) 1.0 Bcf/d (Gp:) 1.0 Bcf/d (Gp:) 2.0 Bcf/d (Gp:) Fees (Gp:)
(1)
(Gp:) Reservation Fee (Gp:) (2) (Gp:) $0.28/MMBTU (Gp:) $0.28/MMBTU (Gp:)
$0.28/MMBTU (Gp:) Opex Fee (Gp:) (3) (Gp:) $0.04/MMBTU (Gp:) $0.04/MMBTU
(Gp:)
$0.04/MMBTU (Gp:) 2010 Full-Year Revenues (Gp:) $126 million (Gp:) $130 million
(Gp:) $256 million (Gp:) Term (Gp:) 20 years (Gp:) 20 years (Gp:) 20 years
(Gp:)
Guarantor (Gp:) Total S.A. (Gp:) Chevron Corp. (Gp:) Cheniere (Gp:) Guarantor
Credit Rating (Gp:) Aa1/AA (Gp:) Aa2/AA (Gp:) NR/B (Gp:) Payment Start Date
(Gp:) April 1, 2009 (Gp:) (4) (Gp:) July 1, 2009 (Gp:) (4) (Gp:) April 1,
2008
(Gp:) (4)(5)
Estimated
CQP Cash Flow Summary Phase 1 Completed Phase
2 Completed (1) Twelve months ended June 30,
2010. (US$ Millions) For the twelve months ended December
31, 2007e 2008e 2009e 2010e (1) Revenue $0 $48 $415 $511 EBITDA (13) 9 369 461 Cash
Received from Sabine
Pass 0 0 257 308 Annual
Distributions to Unit
Holders 34 46 257 281 Reserve
Account
Balance $66 $22 -- -- Common $1.29 $1.70 $1.70 $1.70 Subordinated $0.00 $0.00 $1.55 $1.70 Annual
Cash Distributions Per Unit General
Partner $0.21 $0.28 $1.58 $1.70 CDUs
for Subordinated and G.P. units increase to $1.70 (annualized) over next several
quarters
Target
Market Access Midwest Markets Northeast
Markets Southeast Markets Gulf Coast
Markets Mexican Markets
Development
Projects Body: Installation of equipment to enhance fuel efficiency at the
Sabine Pass terminal Waste Heat Recovery Ambient Air Vaporizers (AAV)
Development of recently proposed interstate pipeline Proposed pipeline would
extend from Louisiana to Alabama; called Louisiana Natural Gas Header Cheniere
is currently holding open season through January 15, 2008 to gauge shipper
interest
Fuel
Efficiency Projects Body: 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 fuel retained from the 2% fuel charge 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 potentially save
50-75% of the 2% fuel charge Combined cost currently estimated to be $160
million Estimated project completion by 2010-2011 Funding from excess cash
and
financings
Louisiana
Natural Gas Header Proposed Pipeline Body: Pipeline would provide supply
diversity Access to new and existing LNG gas supply in and around
Louisiana; nearly 10 Bcf/d regas capacity by 2010 Access to
traditional offshore, onshore and recently developed unconventional supply
Pipeline would connect to growing Southeast demand markets Natural gas demand
expected to increase driven by electric generation Incremental natural gas
necessary to satisfy new electric generation in Florida alone is estimated
at 1
Bcf/d 330-mile long proposed interstate pipeline system comprised of
both 42-inch and 36-inch diameter pipeline Expected in-service date as early
as
mid 2010 Non-binding open season held from November 15 to January 15 to gauge
prospective shipper interest
Dq SESH
- Lucedale SONAT Gulf South FGT
11 Tennessee Dequincy TGC, TETCO, Transco 45, Sempra,
Liberty Storage Cheniere Sabine Pass LNG Johnson Bayou
NGPL, Bridgeline,
SWLateral TETCO FGT Tennessee (Gp:) Scale
- Approximate (Gp:) 0 (Gp:) 40 (Gp:) 60 miles (Gp:) 20 FGT
9 Am LIG Louisiana Natural Gas
Header Gulfstream Eunice ANR, TxGas, Egan Storage, Pine
Prairie Storage Transco 65 Louisiana Natural Gas
Header Creole Trail Under Construction Creole Trail FERC
Authorized
Investment
Summary Body: Stable, 20-year cash flows under take-or-pay contracts Strong
natural gas fundamentals support increased LNG imports Largest LNG receiving
terminal in North America when complete Fully-funded construction costs;
leading
EPC contractors Focusing on strategic development projects Strong sponsorship
from parent supported by>90% ownership Experienced management
team
