November 2014

www.txlng.com

Texas LNG On track to supply US LNG to global markets under flexible terms and competitive prices

CONFIDENTIAL

Copyright © Texas LNG LLC

Project Overview & Shipping Impact

We are a “Pure Play” US LNG Export Project which will produce 2 MTA of LNG from 2019

We are a credible alternative to the ‘status-quo’ where few LNG suppliers control the market and the customer is taken for granted.

We will encourage flexible terms, no destination restrictions, & delivered

prices based on ‘gas-on-gas’ economics and true costs.

Our project will leverage Asian shipyards to reduce capex and thus offer the best price for our customers.

As of TODAY, we are fully funded until FID, including engineering and

permitting activities.

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Optimal location for LNG export project One of the closest ports to the Panama Canal

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Deep Ship Channel

Gulf of Mexico

Brownsville, Texas, USA

Matamoros, Mexico

Project Site

Project concept

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o 2 MTA LNG export facility in Brownsville, South Texas, USA

o 110+ Acre site directly adjoining Deepwater Ship Channel (12.9 meters) and 4 lane highway. Within 10 km from town infrastructure

o Multiple feed gas supply options o Pre-FEED completing, FEED beginning in Nov

2014, First LNG in 2019

Texas LNG’s site in Port of Brownsville is ideal for an LNG export project

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Deep Water

42 feet

(12.8 m)

Power Grid Access

Possible use of electric compressors

Close Proximity to Gas Pipelines

Multiple suppliers under discussion – Feed Gas Supply agreement signed with one of largest gas trading companies in the US (company manages or sells close to 10% of US natural gas consumption).

Wide Channel

~1,000 feet (300 m)

Turning system

to be built on site

Texas LNG site meets all critical criteria

Plot Size

110+ Acres

Waterfront

2,400 feet

(~750 m)

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Samsung Partnership: responsible for all engineering and minority equity owner in project

Conceptual Study

Pre-FEED FEED Detailed Engineering

Completed in May 2014

Commenced in June 2014 –completed

end Oct 2014.

13,000+ man-hours

Begun in Nov 2014

Estimated: Late 2015

Conceptual Study and Pre-FEED engineering is complete. Currently, over 80 full-time Samsung engineers working on FEED in Houston and Seoul, under Texas LNG technical supervision.

FEED ENGINEERING BEGAN TWO WEEKS AGO

Post ‘pre-FEED’ Capex estimates = ~$1.3 Billion for 2 MTA

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Item Current pre-FEED estimate

Barge / Skid Liquefaction Unit (2 MTA) + Storage Tank [LNG Plant: $415 MM, Storage Tank: $135 MM, Gas Pre-treatment + Utilities: $390 MM, post FID PM: $20 MM + Flares: $40 MM]

~$1000 million

Port & Shore-side Facilities [Infrastructure, Dredging & Civils: $300 MM]

~$300 million

TOTAL CAPEX (w/contingency; preliminary pre-FEED estimate)

~$1,300 million (~$1.3 billion)

Development Capital (pre-FID) excluded [Engineering, Environmental, Legal, Community studies and Samsung FEED payment].

Texas LNG will leverage Asian shipyard construction cost and schedule advantage

Australia (Queensland) $/MMBtu

Liquefaction $ 6.50

Feed Gas @ plant $ 7.00

Shipping Costs $ 1.50

Total Delivered Price $ 15.00

Typical Australia contract terms vs Texas LNG model

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Take or Pay portion

Australian LNG project Take or Pay = $13.50

Texas LNG $/MMBtu

Tolling Fee* (rise with inflation) $ 2.80 Feed Gas assumed price $ 4.00 Pipeline Tariff* $ 0.40 Operating Charge* (rise with inflation) $ 0.45 Shipping estimated $ 2.80 Panama Canal estimated $ 0.25 Total Delivered Price* $ 10.70

Take or Pay

Texas LNG’s Take or Pay = $2.80*

Liq

ue

faction

Tolling

Feed Gas

Fee

d G

as

Operating Charge

Shipping

Shipping

$/M

MB

tu

Delivered to North Asia: $15/MMBtu Delivered to North Asia: $10.7/MMBtu

Pipeline

* Texas LNG charges based on current CAPEX and OPEX pre-FEED estimates and may be adjusted as project development continues

Source: Deutsche Bank

Texas LNG’s pricing model provides very large price advantages – especially over long run

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Offtaker has a price advantage as long as oil price above $73/bbl (assuming US gas price = $4.00 + Texas LNG fees + Est. shipping vs 13.5% slope contracts in NE Asia)

Estimated delivered price $10.70

US will be the next wave of LNG supply

10 Source: RWE spot market presentation – LNGgc Mar 2014

The US has the potential to export upto >100 MTA by 2020..this would increase global LNG capacity by >30%.

Very disruptive as it will be priced very differently than current LNG

Independents (like Texas LNG, can and will develop projects that will not be controlled by ‘big oil’

Number of LNG shipping routes has grown…

11 Source: Singapore Energy Studies Institute presentation “Prospects for Trans-Pacific Gas Trade”, March 2012

And LNG Shipping distances have already increased..

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Source: U Western Australia at LNG World Singapore Aug 2014

But once the US enters the picture, things will really change!

13 Source: BG Canada at Gastech – April 2014

In addition, many buyers of US LNG are not end-users

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Source: JP Morgan Cazenove –Global

LNG updated April 2014

Number of ships required is a function distance to market

15 Source: Braemar Shipping Services presentation “Assessment of Global LNG Shipping” Sept 2012

Every 1

MTA of US

exports to

Asia = 2.3

ships for

the trade

US LNG exports will dramatically increase demand for ships

16 Source: Morgan Stanley : LNG Exports Helpful, but No Panacea – Nov 2012

Every 1 Bcf/d = 7 MTA

requires 25 ships

(if market is Japan

from US) AND 17 for

Korea

If less than 50% of all US project proceed,

80 MTA will be exported from US by 2020

The numbers are huge..

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If 40% goes to Asia If 60% goes to Europe

32 MTA (4.3 Bcf/d) 48 MTA (6.5 Bcf/d)

73 Ships 58 Ships

Total : 130 Ships

Required

Thankfully, there are many new ships coming to the market..but are they enough?

18 Source: Simpson Spence Young at Gastech – April 2014

Approximately 300 LNG Tankers active today

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Project highlights

Pure Play US LNG Export Company

Optimal Location

and Community

Support

Low-Risk Customer- Friendly

Tolling model

Experienced & Motivated

Team

Innovative Barge/Skid-

Based Solution

Multiple Feed Gas Supply options

Limited environmenta

l impact expected

Strong Partnership

with Samsung

Efficient use of local labor

Pre-FEED engineering completed – FEED began

Nov2014

Ready to commence

FERC process

FULLY FUNDED AND FEED HAS BEGUN

For the first time in history, small independent entrepreneurial companies (such as Texas LNG) are able to develop LNG export projects. These players, as well as larger known LNG plant operators are betting big on US exports… Thus, US exports WILL change the LNG shipping world as we know it…. BUT will you, members of the Shipping Industry be prepared for this?

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Parting thoughts

Disclaimer

Cautionary Statement:

The information and materials in this document are ; Provided for informational purposes only and are subject to addition, deletion and modification without notice at the sole discretion of Texas LNG LLC. ; Not warranted or guaranteed to be correct, complete or up-to-date. The information and materials could include technical inaccuracies and other errors. ; Provided “As Is” without any representation or warranties of any kind. No liability, direct or consequential, of any kind arising from the use of information and materials contained in this document or linked website is accepted. ; Not to be considered or to be constituted as investment advice or as any type of offer, offer, invitation, solicitation or recommendation in relation to the purchase or sale of any type of financial instruments or security in any jurisdiction.

Any forward looking statements contained in the information and materials in this document are only predictions and are subject to risks, uncertainties and assumptions, many of which are outside the control of Texas LNG LLC or its officers or representatives. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this document. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements .

Readers are strongly advised to complete their own investigations to the accuracy and completeness of the contents of this or any other communication or document, written or oral, provided by or referred to by Texas LNG LLC or its officers or representatives.

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