Cheniere Energy Signs Partner for Freeport LNG Terminal.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--June 5, 2002 Cheniere Energy, Inc. (AMEX AMEX See: American Stock Exchange :CXY) announced today that it has sold to Contango Contango When the futures price is above the expected future spot price. Consequently, the price will decline to the spot price before the delivery date. Notes: This is the opposite of backwardation. Oil & Gas Company (AMEX:MCF) an option to purchase up to a 20% interest in Cheniere's planned LNG LNG (liquefied natural gas): see under natural gas. receiving and regasification terminal in Freeport, Texas. If Contango exercises this option it will pay Cheniere $3,000,000 prior to December 15, 2002 for the 20% interest. Additionally, Contango will contribute its proportionate share of all expenses incurred in developing the terminal as of January 1, 2002. Contango paid $750,000 at closing, which is refundable by July 2003, with interest, if Contango elects not to exercise its option. Charles Reimer, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cheniere, said, "We are delighted that Contango is joining us as a partner in this project and we look forward to a successful association." Cheniere is currently finalizing environmental studies conducted by Ecology and Environmental, Inc., and engineering work by Technip-Coflexip and will submit its application to the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. this summer. It has signed Memoranda of Understanding for offtake Off´take` n. 1. Act of taking off; specif., the taking off or purchase of goods. 2. Something taken off; a deduction. 3. A channel for taking away air or water; also, the point of beginning of such a channel; a take-off. of 650 mmcf/day from the terminal with a variety of industrial utilities and pipeline users in Texas. Cheniere Energy is a Houston-based energy company. It owns 13% of Gryphon Exploration Company, with Warburg, Pincus Equity Partners, L.P. owning the other 87%. Cheniere conducts exploration in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east using a regional database of 7,000 square miles of 3D seismic coverage. It also owns options on three sites along the Texas Gulf Coast for the development of LNG receiving terminals. Additional information on the company may be found on its website at www.cheniere.com, by contacting the company's investor and media relations department toll-free at 888/948-2036 or by writing to: cxy@mdcgroup.com. 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. |
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