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Kiev, 16-17 May 2013

The United States in the Global LNG Revolution. Kiev, 16-17 May 2013.

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Kiev, 16-17 May 2013

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  1. The United States in the Global LNG Revolution Kiev, 16-17 May 2013

  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 1933, as amended. 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 a liquefaction facility by certain dates, or at all; Statements that we expect to receive authorization from the Federal Energy Regulatory Commission, or FERC, or the Department of Energy, or DOE to construct and operate a proposed liquefaction facility by a certain date, or at all; Statements regarding future levels of domestic or foreign natural gas production and consumption, or the future level of LNG imports into North America or exports from the U.S., or regarding projected future capacity of liquefaction or regasification facilities worldwide; Statements regarding any financing transactions or arrangements, whether on the part of Cheniere or at the project level; Statements regarding any commercial arrangements marketed or potential arrangements to be performed 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 that our proposed liquefaction facility, when completed, will have certain characteristics, including a number of trains; 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. and Cheniere Energy Partners, L.P. Current Reports on Form 8-K filed with the Securities and Exchange Commission, 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. Forward Looking Statements

  3. LNG Demand to Nearly Double by 2025 • The market is short at least 11 Bcf/d of supply by 2025 • LNG from the U.S. ideally timed to alleviate shortage • Asia continues to propel the LNG market Source: Woodmac; Excludes US proposed LNG

  4. Australia, Qatar and the US will be the Largest Producers of LNG in 2020 Source: Wood Mackenzie

  5. Firm Liquefaction Capacity Additions Diversity of supply sources practically non existent in the coming years Bcf/d 3.0 Middle East Gulf 2.5 Asia Pacific Gorgon T1 & Gassi Touil Atlantic Basin Papua New Guinea 2.0 Gorgon T2 & Curtis T1 Qatargas T7 Gorgon T3 & Curtis T2 1.5 Wheatstone T1 Pluto Gladstone T1 Angola LNG 1.0 Gladstone T2 Skikda Australia Pacific T2* Prelude 0.5 - Q4 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 2016 2017 2011 2012 2013 2014 2015 Source: Cheniere Research *FID pending

  6. U.S. Natural Gas Markets US Gas Consumptions vs. Production US Proved Non-Producing Reserves Tcf Tcf Source: EIA 2012 Natural Gas Annual. Source: EIA, US Crude Oil, Natural Gas and Natural Gas Liquids Proved Reserves, 2010. US Natural Gas Resources Productive Capacity from Unconventional Reservoirs Tcf Bcf/d MMB/d • U.S. resources increased by 75% since 2006 • Represents over 100 years of supply at current demand Includes Eagle Ford, Barnett Combo, Bakken, Permian, Anadarko, W. Marcellus, Utica, Cotton Valley, Piceance & Uinta 2,081 1,532 Source: Advanced Resource Intl; Cheniere Research. Source: Potential Gas Committee, 2013; EIA, Natural Gas Proved Reserves, 2010 • Current market fundamentals in the U.S. – increased production, increased natural gas reserves and lackluster increase in natural gas demand – have created an opportunity to expand into exports – benefitting U.S. economy, creating jobs and reducing balance of trade 6

  7. Shale Gas – A Growth Story Source: LCI Energy Insight Output from the six major shale plays grew more than 7 fold from 2007 to 2012, according to LCI. That accounts for about 35% of current US production. LCI projects US shale production to reach 35 Bcf/d by 2016. EIA projects that share to increase, choking out imports and reducing conventional onshore and offshore volumes. Tcf

  8. Compelling Price Advantage …Current Prices = ~$2B-$3B of Spread for Each Bcf/d Worldwide Gas Prices = 11% to 15% of Crude Oil Estimated Prices Henry Hub: $4.00 / MMBtu Brent Crude: $100 / Barrel $15.85 Americas Europe Asia ($/MMBtu) $ $ $ Henry Hub 4.00 4.00 4.00 $10.48 Liquefaction 4.00 4.00 4.00 Shipping 0.75 1.25 3.00 $10.30 Fuel/Basis 0.60 0.60 0.60 $3.44 Delivered Cost $ 9.35 $ 9.85 $ 11.60 @ 15% @ 12% @ 15% 15.00 12.00 15.00 Regional Price $ $ $ Margin 5.65 2.15 3.40 … as well as Diversification of Price Risk and Supply Sources Source: Cheniere Research estimates 8

  9. Sabine Pass Liquefaction Project UpdateTrains 1-2 Under Construction; Trains 3-4 EPC Contract Signed Trains nameplate capacity is expected to be ~4.5 mmtpa each Current Facility • ~1,000 acres in Cameron Parish, LA • 40 ft ship channel 3.7 miles from coast • 2 berths; 4 dedicated tugs • 5 LNG storage tanks (~17 Bcf of storage) • 4.3 Bcf/d peak regasification capacity • 5.3 Bcf/d of pipeline interconnection • Liquefaction Trains 1 & 2 • Fully permitted and financed • LSTK EPC contract w/ Bechtel • Overall construction 22% complete (2/13) • Operations estimated 2015-2016 Liquefaction Trains 3 & 4 • LSTK EPC contract w/ Bechtel • Fully permitted, financing expected 2Q 2013 • Construction estimated to start 2013 • Operations estimated 2016-2017 • Liquefaction Expansion - Trains 5 & 6 • Bechtel commenced preliminary engineering • Permitting initiated February 2013 with formal application expected to be filed with FERC in 2H 2013 9

  10. Sabine Pass Liquefaction – Stage 1 Construction

  11. Timeline & Milestones Target Date Sabine Pass Corpus Christi T3-4 Milestone T1-2 T5-6     • Initiate permitting process (FERC & DOE) • Commercial agreements TBD 2H13 • EPC contract2H13 • Financing commitments 1H13 1H14 • Regulatory approvals 1H14 • Commence construction 2013 1H14 • Commence operations (1) 2016/17 2017     2H14  1H15   2H14 1H15  2015/16 2018 (1) Each Train to commence operations approximately six to nine months after the previous train. Note: See “Forward Looking Statements” slide.

  12. US Considerations on LNG Exports • Benefits to the Economy: - Job Creation: ~ 50, 000 jobs every 2 Bcf/d of LNG Exports - Increase in US households’ real income thanks to export revenues - Balance of Trade: $15-25 billion for 6 Bcf/d of LNG Exports • Monetisation of stranded gas associated with shale and tight oil production • Key for national energy security and offers a new geopolitical leverage to the US soft power • Reinforcement of the US’ support for free trade (WTO)

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