Louisiana Governor Blanco Endorses Cheniere Energy Sabine Pass LNG Receiving Terminal

Business Wire, May 3, 2004

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--May 3, 2004

State Takes National Lead in Opening Access to World's Natural Gas

Supplies to Head Off Looming Domestic Energy Crisis

Cheniere Energy Inc. (AMEX:LNG) Attending the Offshore Technology Conference in Houston for meetings with the nation's oil & gas executives, Louisiana's Governor, Kathleen Babineaux Blanco committed her state's full support for Cheniere Energy's Sabine Pass LNG Receiving Terminal in southwest Louisiana. Blanco's charge to her state's agencies and to the Federal government to support the project follows the overwhelming support from local communities nearby the site where Cheniere Energy plans to build the nation's largest receiving terminal to import over 2.6 billion cubic feet per day of LNG (Liquefied Natural Gas).

Governor Blanco is leading Louisiana to the forefront in the race to secure the nation's access to the world's abundant and cheaper supply of natural gas -- the most environmentally friendly fuel supply. The country's lack of access to wider supplies of natural gas and its threat to our economy has been underscored repeatedly by Federal Reserve Chairman Alan Greenspan in speeches and testimony before Congress as the nation's industrial and power complex continue to lose jobs, and consumers nationwide face ever higher energy bills.

Governor Blanco said that "Greater economic development for Louisiana is the cornerstone of my administration and has been my mission in public service. We are committed to ensuring access to economic, safe and environmentally friendly energy supplies that will not only create jobs in our state, but will keep jobs here." Cheniere and its contractors will employ over 600 people during construction of this facility and will create over 120 direct and indirect jobs when operational.

A recently released report "Economic Opportunities for LNG Development in Louisiana" by the Center for Energy Studies at Louisiana State University concluded that development of a liquefied natural gas infrastructure in the state could increase gas export volumes through the existing pipeline system by over 237%, could provide $398 million in annual gas expenditure savings, create over 13,000 jobs and preserve 11,600 existing jobs, and inject over $2.3 billion into the state economy.

Charif Souki, chairman of Cheniere, said, "We are thrilled by the reception of the state of Louisiana and Cameron Parish to our project. We are grateful to Governor Blanco for her leadership and support. We look forward to making a positive contribution to the economy of the state for many years to come."

The governor's staff noted that the plans for the terminal were presented to local and adjoining community residents in March at a widely attended Scoping Meeting conducted by the Federal Energy Regulatory Commission (FERC), which oversees safety and coordinates permitting of these facilities. FERC staff, there to introduce the project were pleased to find our residents had been studying the project since it was announced in 2001. A very loud chorus of support was the message FERC took home to Washington, D.C.

Governor Blanco added, "The residents, our civic organizations and I have written to FERC in support of the project and we will be contacting them regularly to ensure they do everything possible to satisfy our request to expedite Cheniere's permit. I also want to recognize the efforts of Louisiana Economic Development in facilitating Cheniere's choice to expand in Louisiana. We welcome Cheniere to our State and to our community."

Cheniere Energy Inc. is a Houston-based developer of liquefied natural gas receiving terminals and a Gulf of Mexico Exploration & Production 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: Info@Cheniere.com.

Photograph of Artist's Rendition of Cheniere Energy Sabine Pass LNG Receiving Terminal available as JPEG on-line at www.Cheniere.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.