EXHIBIT 1

                        CHENIERE ENERGY INC. NEWS RELEASE

                                                        CONTACT: David Castaneda
                                                      Investor & MEDIA Relations
                                                                  1-888-948-2036
                                                        E-mail: cxy@mdcgroup.com


            Cheniere Energy Advances Freeport LNG Development Project
           Charles Reimer Assumes Helm at Freeport LNG Development LP

Houston - December 19, 2002 - Cheniere Energy, Inc. (ASE: CXY) announced that
Charles M. Reimer has accepted the position of President and Chief Operating
Officer for Freeport LNG Development, L.P. ("Development"). Development was
formed by Michael S. Smith (founder and previous Chairman of Basin Exploration)
to pursue the development of Cheniere's Freeport, Texas, LNG receiving facility
project. Charif Souki, Chairman of Cheniere, will assume the positions of
President and Chief Executive Officer of the company vacated by Mr. Reimer.

In a related development, Freeport LNG Investments, LLC ("Investments"),
Cheniere's partner in Development, advanced Cheniere $650,000 and agreed to fund
all expenses related to the development of the LNG receiving facility in
Freeport, Texas until the closing of the previously announced transaction
between Investments and Cheniere. The closing date will be in mid-February under
the terms of the agreement between the parties. For consideration received,
Cheniere has also extended to mid-February the option held by Contango Oil & Gas
Company (ASE: MCF) to acquire a 10% interest in the Freeport facility.

Cheniere Energy is a Houston-based energy company. It owns 9% of Gryphon
Exploration Company, with Warburg, Pincus Equity Partners, L.P. owning the other
91%. Cheniere conducts exploration in the Gulf of Mexico using a regional
database of 7,000 square miles of 3D seismic coverage. It is also developing
sites for LNG receiving facilities along the Texas Gulf Coast. 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.