CHENIERE ENERGY, INC.

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1 CHENIERE ENERGY, INC. Factors Affecting Global Coal-Gas Competition NGI Workshop - Global Competition Between Coal and Natural Gas October 15th 218 Najla Jamoussi Director, Market Fundamentals & Corporate Research

2 Safe Harbor Statements Forward-Looking Statements 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 of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical or present facts or conditions, included or incorporated by reference herein are forward-looking statements. Included among forward-looking statements are, among other things: statements regarding the ability of Cheniere Energy Partners, L.P. to pay distributions to its unitholders or Cheniere Energy, Inc. to pay dividends to its shareholders or participate in share or unit buybacks; statements regarding Cheniere Energy, Inc. s or Cheniere Energy Partners, L.P. s expected receipt of cash distributions from their respective subsidiaries; statements that Cheniere Energy Partners, L.P. expects to commence or complete construction of its proposed liquefied natural gas ( LNG ) terminals, liquefaction facilities, pipeline facilities or other projects, or any expansions or portions thereof, by certain dates or at all; statements that Cheniere Energy, Inc. expects to commence or complete construction of its proposed LNG terminals, liquefaction facilities, pipeline facilities or other projects, or any expansions or portions then of, by certain dates or at all; statements regarding future levels of domestic and international natural gas production, supply or consumption or future levels of LNG imports into or exports from North America and other countries worldwide, or purchases of natural gas, regardless of the source of such information, or the transportation or other infrastructure, or demand for and prices related to natural gas, LNG or other hydrocarbon products; statements regarding any financing transactions or arrangements, or ability to enter into such transactions; statements relating to the construction of our proposed liquefaction facilities and natural gas liquefaction trains ( Trains ) and the construction of our pipelines, including statements concerning the engagement of any engineering, procurement and construction ("EPC") contractor or other contractor and the anticipated terms and provisions of any agreement with any EPC or other contractor, and anticipated costs related thereto; statements regarding any agreement to be entered into or performed substantially in the future, including any revenues anticipated to be received and the anticipated timing thereof, and statements regarding the amounts of total LNG regasification, natural gas, liquefaction or storage capacities that are, or may become, subject to contracts; statements regarding counterparties to our commercial contracts, construction contracts and other contracts; statements regarding our planned development and construction of additional Trains or pipelines, including the financing of such Trains or pipelines; statements that our Trains, when completed, will have certain characteristics, including amounts of liquefaction capacities; statements regarding our business strategy, our strengths, our business and operation plans or any other plans, forecasts, projections or objectives, including anticipated revenues, capital expenditures, maintenance and operating costs, run-rate SG&A estimates, cash flows, EBITDA, Adjusted EBITDA, distributable cash flow, distributable cash flow per share and unit, deconsolidated debt outstanding, and deconsolidated contracted EBITDA, any or all of which are subject to change; statements regarding projections of revenues, expenses, earnings or losses, working capital or other financial items; statements regarding legislative, governmental, regulatory, administrative or other public body actions, approvals, requirements, permits, applications, filings, investigations, proceedings or decisions; statements regarding our anticipated LNG and natural gas marketing activities; and any other statements that relate to non-historical or future information. These forward-looking statements are often identified by the use of terms and phrases such as achieve, anticipate, believe, contemplate, develop, estimate, example, expect, forecast, goals, guidance, opportunities, plan, potential, project, propose, subject to, strategy, target, and similar terms and phrases, or by use of future tense. Although we believe that the expectations reflected in these forwardlooking 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. Annual Reports on Form 1-K filed with the SEC on February 21, 218, 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 other than as required by law, we undertake no obligation to update or revise any forward-looking statement or provide reasons why actual results may differ, whether as a result of new information, future events or otherwise. 2

3 Cheniere Projects Update Sabine Pass Liquefaction Project (Louisiana) Corpus Christi Liquefaction Project (Texas) Four trains operating and one train undergoing commissioning (22.5 mtpa total) Contracts with 4 long-term third-party buyers commenced More than 4* destination-flexible cargoes exported since startup Train 6 is fully permitted & being commercialized First greenfield LNG export facility in U.S. Lower-48 One train undergoing commissioning, two trains under construction (13.5 mtpa total) Trains 1 & 2 completion schedule 1H & 2H 219 Train 3 FID May 218, substantial completion expected 2H 221 Filed FERC application for ~9.5 mtpa expansion adjacent to CCL Trains 1-3 Building an industry leading LNG export platform along the U.S. Gulf Coast 3

4 Cheniere Energy Global Long Term Customers France U.K. Spain Netherlands Switzerland Portugal 8.6 Taiwan South Korea India China Indonesia Australia 4 Supply Purchase Agreements

5 Sabine Pass Cargo Destinations More Than 4 Cargoes (~1,475 TBtu) Exported from Sabine Pass Since Startup. Delivered to 28 Countries and Regions. London, U.K. Lithuania, Netherlands, Poland, United Kingdom Houston, TX Mexico Washington, DC Colombia, Panama Dominican Republic Brazil Portugal, Spain Egypt, Israel, Italy, Jordan, Malta, Turkey Kuwait, Pakistan, UAE Beijing, China India, Thailand China, Taiwan Singapore Japan, South Korea Tokyo, Japan Santiago, Chile Chile Cheniere LNG Facility Cheniere Office Cargo Delivery Destination Argentina million tonnes Sabine Pass Deliveries by Destination Region 5 Asia Latin America Europe MENA cargo count Source: Cheniere Research, Kpler Note: Cumulative cargoes and deliveries as of July 31, 218. MENA Middle East & North Africa Q1 217 Q2 217 Q3 217 Q4 217 Q1 218 Q

6 The World Is Transitioning Towards A Low Carbon Economy And Cleaner Burning Fuels 25 2 Change in Global Gas vs. Coal Consumption Secular Shift To Cleaner Sources Of Energy MTOE Coal Gas Pledge to keep global temperature rise below 2 degrees Celsius this century 214 marked the start of coal use decline with 215 being the largest recorded year-on-year drop U.S. Electric Power CO2 Emissions 6 UK Power Gen Mix By Fuel Market Signals + Environmental Policy For Cleaner Natural Gas Million Metric Tons of Carbon Dioxide Other Natural Gas Coal TWh Sources: Cheniere Research, EIA, Elexon, BP Statistical Review of World Energy, UN Affordable, reliable US gas supplies have resulted in CO 2 reductions Other Coal Gas A carbon price floor in the UK has increased gas share in the power sector

7 Shale Gas Has Fundamentally Reset U.S. Price Expectations Break-even price at Henry Hub for North American onshore natural gas resources Henry Hub Natural Gas Price Break-even gas price ($/MMBtu) $12 $9 $6 $3 $ -$3 Years Supply Tcf of resource that is economic below $3/MMBtu 1,25 Tcf of resource that is economic below $4/MMBtu $/MMBtu Futures -$6 -$9 -$12 5 1, 1,5 2, Commercially recoverable gas resource (Tcf) 2 Actuals Source: IHS Markit (Jun. 218) 1. Assuming 217 North America (Mexico, U.S., Canada) consumption of 33.4 Tcf Source: EIA Historical Henry Hub to Mar 218, Apr-Jul EIA Contract Settlement Price, NYMEX Henry Hub Futures From Aug 218 as of June 6,

8 Market Signals + Environmental Policy = Increased Utilization of Natural Gas In the United States, abundant low priced gas resources, along with environmental and tax policies, led to coal-to-gas switching, reducing CO 2 emissions from the power sector The sharp decline in natural gas prices along with the Mercury and Air Toxics Standards (MATS) released by the U.S. EPA in 212, resulted in significant reductions in power sector emissions Gas-fired generation surpassed coal for the first time in 216 and CO 2 emissions from the power sector continued to decline 6% Share of Total U.S. Power Generation By Source 3 U.S. Electric Power CO 2 Emissions % of total 5% 4% 3% 2% 1% MATS Period Million Metric Tons of Carbon Dioxide Other Natural Gas Coal 14% down from 212 % Coal Natural Gas Nuclear Renewables Source: Cheniere Research, EIA April 218 Monthly Energy Review

9 Gas Offers a Viable Opportunity to Global Markets to Reduce Emissions, Meet Policy Targets The U.S. achieved over 2 billion tons of cumulative lower CO2 emissions from fuel switching to natural gas since 25; an additional 1.1 billion tons due to increase in renewables Total US electric power CO 2 emissions dropped 27%; total emissions dropped 17% since 25 In the UK, CO2 emissions have dropped 26% since 21 as result of responsible policies on carbon and price factors that made gas competitive in the generation stack Globally, emissions have plateaued in the last 3 years and are hoped to have peaked LNG from the United States can help economies such as China displace higher carbon-intensive fuels and achieve sustainable, environmentally responsible growth 1 Total US Annual Emissions 7 Total UK Annual CO2 Emissions Million Metric Tons of Carbon Dioxide Biomass 7 5 Electric Power Electric 6 4 Power* 5 Transportation Public 4 3 Transport 3 Industrial 2 2 Business Commercial 1 1 Residential Residential (p) Sources: US EIA April Energy Review By Sector; UK Department for Business, Energy & Industrial Strategy 9 Million tonnes carbon dioxide

10 China Pushes to Increase Gas Use, Aims to Clean Up the Air China instituted regional initiatives to replace coal boilers in residential and industrial sectors resulting in higher utilization of gas The Northern province of Hebei alone saw over 2.3 million households switch from coal to gas heating, doubling gas demand for the winter season Air quality in Beijing and Hebei area improved by 19% and 17% in 217 vs. 214, respectively China seeks to achieve peak CO2 emissions by 23 (bcm) Source: Hebei Gas Demand Estimates is from SIA Energy, Air Quality Data is from Note: Data is based on the Capital City of Hebei, Shi Jia Zhuang Estimated Gas Demand in Hebei Province during the Heating Season (Nov - Feb) Gas Demand Replacing coal in residential sector 1.1 Replacing coal in industrial sector 7. Gas Demand 217 Annual Average AQI Change in Air Quality Index in Beijing and Hebei Province Air Quality Improved 19% in Beijing 125 Beijing Beijing 217 Air Quality Improved 17% in Hebei Hebei Hebei 217

11 Outlook for Natural Gas IEA Gas will continue to be part of the fuel mix for a long time, with global consumption expected to increase by 46% from 216 to 24 Global gas demand is forecasted to grow at a CAGR of 1.6% to 24, much faster than oil (.4%) or coal (.2%) Developing countries expected to account for 8% of the growth in gas consumption Natural gas use will complement renewable energy growth 2 World Natural Gas Demand (IEA New Policies Scenario) Tcf North America Central & South America Europe Africa Middle East Eurasia Asia Pacific Bunkers 11 Source: Cheniere Research, IEA WEO 217

12 U.S. LNG Exports Help Global Markets Achieve Environmental Goals Utilizing LNG to shift to cleaner burning natural gas can reduce air pollution and greenhouse gas emissions to meet policy goals, while still using a reliable and economic fuel source Benefits of cleaner burning natural gas Environmental Complementary with renewables: flexible gas generation complements intermittent renewables, ensuring reliable power supplies Lower carbon intensity than other fossil fuels approximately 5% less than coal Significantly lower traditional pollutants, including NOx, SOx, PMs and hazardous air pollutants, helping improve air quality Cost-effective, reliable and deliverable solution Benefits of Cheniere s U.S. LNG Commercial Flexible - destination-free, pick-up at our terminal or delivered around the world, growing liquidity in market Price Competitive linked to robust, transparent and liquid U.S. natural gas market Reliable more than 4 cargoes delivered to 28 countries and regions since startup; resilient operations in the face of adverse weather conditions in the past months 12

13 Thank you 13