Cheniere Energy Initiates Open Season for Pipeline at Creole Trail.

HOUSTON -- Cheniere Energy, Inc. (AMEX:LNG) announced today that its wholly owned subsidiary, Cheniere Creole Trail Pipeline Company, will initiate an open season for the marketing of natural gas pipeline transportation capacity to interconnect planned liquefied natural gas (LNG) receipt terminals with over 12 billion cubic feet per day of natural gas pipeline infrastructure in south Louisiana. The proposed pipeline system will have two receipt points in Cameron Parish, Louisiana, including both the recently announced Creole Trail LNG Terminal planned to be situated on the Calcasieu Ship Channel, and the Sabine Pass LNG Terminal currently under construction on the Sabine Pass Ship Channel. The proposed pipeline will interconnect with as many as fifteen different interstate and intrastate pipeline systems, and terminate in the vicinity of Rayne, Louisiana.

Cheniere Energy has initiated the NEPA pre-filing process to apply to the Federal Energy Regulatory Commission for authorization under Section 7(c) of the Natural Gas Act to construct and operate the Cheniere Creole Trail Pipeline. The targeted in-service date is late 2008. The binding open season will commence on April 1, 2005, and will conclude at 4:00 p.m. (CST) on June 1, 2005. A detailed description of the open season is available at Cheniere's website, www.cheniere.com.

Cheniere Energy, Inc. is a Houston-based energy company engaged in developing LNG Receiving Terminals and Gulf of Mexico Exploration & Production. Cheniere is building 100%-owned Gulf Coast LNG Receiving Terminals near Sabine Pass in Cameron Parish, LA and developing 100%-owned Gulf Coast LNG Receiving Terminals near Corpus Christi, TX, and near the Creole Trail in Cameron Parish, LA. Cheniere is also a 30% limited partner in Freeport LNG Development, L.P., which is building an LNG Receiving Terminal in Freeport, Texas. Cheniere explores for oil and gas in the Gulf of Mexico 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., which owns 91%. Additional information about Cheniere Energy, Inc. may be found on its web site at www.cheniere.com.

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.