Cheniere Energy Engages HSBC and Petrie Parkman as Advisors for LNG Terminals Financing.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--July 1, 2003

Cheniere Energy Inc. (AMEX:LNG) announced today that it has engaged HSBC Securities (USA) Inc. and Petrie Parkman & Co. Inc. as financial advisors. The financial firms are to assist Cheniere in arranging funding for LNG regasification facilities which Cheniere plans to build at Corpus Christi, Texas, and Sabine Pass, La.

HSBC Securities (USA) Inc.'s project finance team in New York will lead the debt advisory. HSBC is a leading provider of project finance advice to the oil & gas industry with current and recent mandates for LNG terminals, gas pipelines and petrochemical facilities worldwide. HSBC Securities (USA) Inc. is an indirectly held, wholly owned subsidiary of HSBC Holdings plc (NYSE: HBC), which is headquartered in London. The HSBC Group has some 9,500 offices in 80 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

Petrie Parkman is an investment bank specializing in advisory services to the energy industry and institutional investors.

Charif Souki, chairman and CEO of Cheniere, said, "In the next 18 months, we are looking to arrange funding through a combination of debt and equity of approximately $1 billion for our LNG regasification facilities at Corpus Christi and Sabine Pass, and to provide support to Freeport LNG Development, L.P., in which we hold a 30 percent limited partnership interest.

HSBC has been involved in LNG projects around the world and has a wealth of experience in this field. Petrie Parkman has worked with us for three years on our various equity projects. The combination will provide Cheniere with very strong financial advisory support to ensure we access the optimum financial and capital markets for our projects. We are delighted to have them on board."

Cheniere Energy Inc. is a Houston-based Gulf of Mexico E&P company and a developer of Liquefied Natural Gas (LNG) receiving terminals. Cheniere conducts exploration in the Gulf using a regional database of 7,000 square miles of PSTM 3D seismic data. Cheniere owns 9% of Gryphon Exploration Company, along with Warburg, Pincus Equity Partners, L.P. who owns 91% after an investment of $85,000,000. Gryphon conducts exploration in the Gulf using a regional database of 20,000 square miles of PSTM 3D seismic data. Cheniere is a 30% limited partner in Freeport LNG Development, L.P., which is developing an LNG receiving terminal in Freeport, Texas. Cheniere is also developing two additional LNG receiving terminals along the Gulf Coast with locations in Corpus Christi, Texas, and Sabine Pass, La.

Additional information on the company 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].

Except for the historical statements contained herein, this news release presents forward-looking statements that involve risks and uncertainties. Although the company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Certain risks and uncertainties inherent in the company's business are set forth in the company's periodic reports that are filed with and available from the Securities and Exchange Commission.