FERC Approves Sabine Pass LNG Permit

Cheniere Energy reports that at today's Commission meeting, the Federal Energy Regulatory Commission (FERC) approved the construction of Cheniere's Sabine Pass LNG Receiving Terminal in Cameron Parish, La. The approval, under Section 3 of the Natural Gas Act, authorizes Cheniere's wholly owned limited partnership, Sabine Pass LNG, L.P. (Sabine) to site, construct and operate a liquefied natural gas (LNG) receiving terminal. FERC concurrently approved the associated Cheniere Sabine Pass Pipeline Company project under Section 7 of the Natural Gas Act.

Charif Souki, chairman & CEO of Cheniere, said, "We would like to thank the Federal Energy Regulatory Commission, the Department of Energy, the Honorable Kathleen Babineaux-Blanco Governor of Louisiana, Senator-Elect David Vitter and Senator Mary Landrieu, the Cameron Parish Police Jury, the Sabine Pass Pilots Association, the Jefferson County Waterway and Navigation District, the West Cameron Port Commission, Louisiana's state and local agencies and their federal and local legislative representatives, and most of all, the citizens of Cameron Parish. Once again, together, we made the process work. Thank you!"

On Dec. 22, 2003, Sabine filed an application with FERC for authorization to construct and operate the facility with an initial processing capacity of 2.6 billion cubic feet per day (Bcf/d). On Nov. 12, 2004, the FERC Staff concluded in a Final Environmental Impact Statement that approval of the Sabine Pass LNG Receiving Terminal and Pipeline Project, with appropriate mitigating measures as recommended, would have limited adverse environmental impact. The Dec. 15, 2004, action authorizes Cheniere's entities to site, construct and operate the Sabine Pass LNG receiving terminal and associated pipeline, subject to specified conditions which Cheniere expects to satisfy. Construction of the facility is planned to begin in the first quarter of 2005.

Sabine's capacity holders are Total LNG USA Inc., a subsidiary of Total S.A., with a reservation of 1 Bcf/d for 20 years, and a subsidiary of ChevronTexaco Corporation, with a reservation of 700 million cubic feet per day (mmcf/d) for 20 years with the option prior to Dec. 1, 2005, to decrease by 200 million cubic feet or increase to 1 Bcf/d. Cheniere LNG Inc. will retain the balance of the capacity.