UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13G UNDER THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. )* CHENIERE ENERGY, INC. (Name of Issuer) COMMON STOCK, PAR VALUE $0.003 PER SHARE (Title of Class of Securities) 16411R208 (CUSIP Number) DECEMBER 31, 2005 (Date of Event which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: [X] Rule 13d-1(b) [ ] Rule 13d-1(c) [ ] Rule 13d-1(d) *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). Continued on following pages Page 1 of 9 Pages 1 Names of Reporting Persons I.R.S. Identification Nos. of above persons (entities only) PERRY CORP. 2 Check the Appropriate Box If a Member of a Group (See Instructions) a. [ ] b. [ ] 3 SEC Use Only 4 Citizenship or Place of Organization NEW YORK 5 Sole Voting Power Number of 3,345,240 Shares Beneficially 6 Shared Voting Power Owned By 0 Each Reporting 7 Sole Dispositive Power Person 3,345,240 With 8 Shared Dispositive Power 0 9 Aggregate Amount Beneficially Owned by Each Reporting Person 3,345,240 10 Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) [ ] 11 Percent of Class Represented By Amount in Row (9) 6.10% 12 Type of Reporting Person (See Instructions) IA, CO 2 1 Names of Reporting Persons I.R.S. Identification Nos. of above persons (entities only) RICHARD C. PERRY 2 Check the Appropriate Box If a Member of a Group (See Instructions) a. [ ] b. [ ] 3 SEC Use Only 4 Citizenship or Place of Organization UNITED STATES 5 Sole Voting Power Number of 3,345,240 Shares Beneficially 6 Shared Voting Power Owned By 0 Each Reporting 7 Sole Dispositive Power Person 3,345,240 With 8 Shared Dispositive Power 0 9 Aggregate Amount Beneficially Owned by Each Reporting Person 3,345,240 10 Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) [ ] 11 Percent of Class Represented By Amount in Row (9) 6.10% 12 Type of Reporting Person (See Instructions) IN, HC 3 ITEM 1(A) NAME OF ISSUER: Cheniere Energy, Inc. (the "Issuer"). ITEM 1(B) ADDRESS OF THE ISSUER'S PRINCIPAL EXECUTIVE OFFICES: 717 Texas Avenue, Suite 3100 Houston, TX 77002 ITEM 2(A) NAME OF PERSON FILING: This statement is filed on behalf of each of the following persons (collectively, the "Reporting Persons"): i) Perry Corp.; and ii) Richard C. Perry, in his capacities as the President and sole stockholder of Perry Corp. ("Mr. Perry"). This statement relates to Shares (as defined herein) held for the accounts of two or more private investment funds for which Perry Corp. acts as general partner and/or managing member of the general partner and/or investment adviser. ITEM 2(B) ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE: The address of the principal business office of each of the Reporting Persons is 767 Fifth Avenue, New York, New York 10153. ITEM 2(C) CITIZENSHIP: 1) Perry Corp. is a New York corporation; and 2) Mr. Perry is a citizen of the United States. ITEM 2(D) TITLE OF CLASS OF SECURITIES: Common Stock, $0.003 par value per share (the "Shares"). ITEM 2(E) CUSIP NUMBER: 16411R208 ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULE 13D-1(B), OR 13D-2(B) OR (C), CHECK WHETHER THE PERSON FILING IS A: i) Perry Corp. is an investment adviser registered under Section 203 of the Investment Advisers Act of 1940. ii) Mr. Perry is a control person of Perry Corp. 4 ITEM 4. OWNERSHIP: ITEM 4(A) AMOUNT BENEFICIALLY OWNED: As of the Date of Event, each of the Reporting Persons may be deemed to be the beneficial owner of 3,345,240 Shares. This number consists of (1) 2,667,658 Shares beneficially owned by the Reporting Persons and (2) 677,582 Shares issuable upon conversion of certain bonds beneficially owned by the Reporting Persons (the "Bonds"). ITEM 4(B) PERCENT OF CLASS: As of the Date of Event, the number of Shares outstanding was 54,135,808 according to the Issuer's Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 filed on November 4, 2005 (the "Quarterly Report"). As of the Date of Event, each of the Reporting Persons may be deemed to be the beneficial owner of approximately 6.10% of the total number of Shares outstanding. This percentage was calculated by dividing (i) (A) the total amount of Shares beneficially owned by the Reporting Persons, plus (B) the total amount of Shares issuable upon conversion of the Bonds, by (ii) (x) the total number of Shares outstanding as reported by the Issuer in the Quarterly Report, plus (y) the total amount of Shares issuable upon conversion of the Bonds. ITEM 4(C) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS: