Cheniere Energy's LNG Trading Affiliate J&S Cheniere S.A. Charters Third LNG Vessel.

HOUSTON -- Cheniere Energy Inc. (AMEX:LNG) announced that its affiliate, J&S Cheniere S.A. ("J&S"), has executed a Time Charter Agreement for up to ten years for its third LNG vessel with a joint venture company established by Kawasaki Kisen Kaisha, Ltd. (K-Line), Shoei Kisen Kaisha, Ltd. and others. The new build 154,200 cubic meter capacity LNG vessel is being constructed by Imabari Shipbuilding Co., Ltd. and is expected to be delivered in the fourth quarter of 2007. K-Line will provide ship management services.

Charif Souki, Cheniere Energy's chairman & CEO, said, "We received the draft Environmental Impact Statement for our Sabine Pass LNG receiving terminal three weeks ago indicating no significant impediments for granting of our permits to commence construction of the facilities. We believe we are on track to break ground in the first quarter of 2005 and to be in service in late 2007 or early 2008. The State of Louisiana is sponsoring an effort to organize a group of the state's natural gas buyers to benefit from the terminal and the access it provides to the world's gas market. Our affiliate J&S Cheniere is now positioning itself to be able to provide shipping services to complement the terminal."

J&S Cheniere S.A. was formed in August of 2003 for the purpose of buying, selling and trading LNG. Cheniere's partner in the venture, J&S Services and Investment, is a private corporation engaged in petroleum commodity trading. J&S Cheniere has been capitalized independently; Cheniere Energy is not exposed to any liabilities resulting from the activities of the venture. In August of 2003, J&S chartered its first LNG vessel, the Tenaga Empat. In January of 2004, J&S signed a transportation agreement for the Tenaga Empat and has been actively transporting LNG cargoes into the U.S. & Europe. On Aug. 25, 2004, J&S signed a Time Charter Agreement with K-Line to charter its second vessel, a new build 145,000 cubic meter capacity LNG Vessel being constructed by Kawasaki Shipbuilding Corporation for delivery in the fourth quarter of 2007.

Cheniere Energy Inc. is a Houston-based developer of liquefied natural gas receiving terminals and a Gulf of Mexico E&P company. Cheniere is developing Gulf Coast LNG receiving terminals near Sabine Pass, La., and near Corpus Christi, Texas. Cheniere is also a 30% limited partner in Freeport LNG Development, L.P., which is developing an LNG receiving terminal in Freeport, Texas. Cheniere conducts exploration for oil and gas in the Gulf of Mexico using a regional database of 7,000 square miles of PSTM 3D seismic data. Cheniere also owns 9% of Gryphon Exploration Company, along with Warburg, Pincus Equity Partners, L.P. which owns 91%. Additional information about Cheniere Energy Inc. may be found on its Web site at www.cheniere.com, by contacting the company's investor and media relations department toll-free at 888-948-2036 or by writing to: [e-mail].

This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere's business strategy, plans and objectives and (ii) statements expressing beliefs and expectations regarding the development of Cheniere's LNG receiving terminal business. Although Cheniere believes 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. Cheniere's 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 Cheniere's periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.