Cheniere Receives FERC Approval for Freeport LNG Terminal

Cheniere Energy reports that the Federal Energy Regulatory Commission (FERC) has issued an Order under Section 3 of the Natural Gas Act Authorizing Freeport LNG Development, L.P. (Freeport LNG) to site, construct and operate a Liquefied Natural Gas (LNG) Receiving Terminal on Quintana Island near Freeport, Texas. Cheniere Energy holds a 30% limited partnership interest in Freeport LNG.

Freeport LNG filed an application for the permit with FERC on March 28, 2003, for authorization to construct and operate the facility with an initial processing capacity of 1.5 billion cubic feet per day (Bcf/d). As previously announced, The Dow Chemical Company (NYSE:DOW) and ConocoPhillips (NYSE:COP) have entered into agreements with Freeport LNG for all of the facility's capacity.

Charif Souki, chairman & CEO of Cheniere said, "Cheniere started the process to prepare the application for this permit almost three years ago. During this time we received great support from the Federal Energy Regulatory Commission, the Department of Energy, the communities' Congressional representation in Washington, the office of the Governor of Texas, the Texas Railroad Commission and the Texas legislature. Together, we made the process work. We believe the Freeport LNG receiving terminal will be a great asset to the communities of the Freeport area, to Texas and to the nation."

"We are confident that this first success will be followed by a similar experience for the applications we filed with FERC on Dec. 22, 2003, for LNG receiving terminal sites at Sabine Pass, La., and Corpus Christi, Texas. FERC has recognized the importance to the U.S. economy of building an LNG receiving infrastructure. Where the local communities support these projects, the process is very transparent and straightforward. We believe enough infrastructure can be built to allow LNG to account for 25 percent of domestic natural gas consumption by the end of the decade. This is a positive first step."

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