EXHIBIT 5.1

[Letterhead of Andrews Kurth LLP]

September 3, 2004

Cheniere Energy, Inc.
717 Texas Avenue, Suit 3100
Houston, Texas 77002

Gentlemen:

        We have acted as special counsel to Cheniere Energy, Inc., a Delaware corporation (the "Company"), Cheniere LNG Services, Inc. a Delaware corporation ("LNG Services"), Cheniere LNG, Inc., a Delaware corporation ("LNG"), Cheniere Energy Operating Co., Inc., a Delaware corporation ("Operating Co.") and Cheniere-Gryphon Management, Inc., a Delaware corporation ("Gryphon," and together with LNG Services, LNG and Operating Co., the "Guarantors," and collectively with LNG Services, LNG, Operating Co. and the Company, the "Companies"), in connection with the preparation of a registration statement on Form S-3 (as amended, the "Registration Statement") filed with the Securities and Exchange Commission (the "Commission") pursuant to the Securities Act of 1933, as amended (the "Act"). The Registration Statement relates to the offering from time to time, as set forth in the Registration Statement, the form of prospectus contained therein (the "Prospectus") and one or more supplements to the Prospectus (each, a "Prospectus Supplement"), of, among other securities (A) by the Company of (i) shares of its common stock ("Common Shares"), (ii) shares of its preferred stock ("Preference Shares"), (iii) its senior and subordinated debt securities ("Debt Securities"), (iv) warrants to purchase debt or equity securities of the Company ("Warrants") and (v) units consisting of one or more Warrants, Debt Securities, Guarantees, Preference Shares, Common Shares or any combination of such securities ("Units") and (B) by each Guarantor of guarantees of Debt Securities ("Guarantees"), having an aggregate initial public offering price (for all such securities referred to in the foregoing clauses (A) and (B)) not to exceed U.S. $600,000,000, on terms to be determined at the time of the offering. The Debt Securities, Preference Shares, Warrants and Units may be convertible into or exercisable for Common Shares. The Common Shares, Preference Shares, Debt Securities, Guarantees, Warrants and Units are collectively referred to herein as the "Securities." All capitalized terms which are not defined herein shall have the meanings assigned to them in the Registration Statement or in the applicable Indenture (as defined below), as the case may be.

        The Debt Securities and the Guarantees will be issued pursuant to (i) a senior indenture (the "Senior Indenture"), or (ii) a subordinated indenture (the "Subordinated Indenture" and, collectively with the Senior Indenture, the "Indentures"), each to be entered into by the Company,each of the Guarantors, as guarantor, and a financial institution to be named therein, as trustee (the "Trustee"), substantially in the forms attached as Exhibits 4.13 and 4.14 to the Registration Statement, and each as the same may hereafter be supplemented from time to time, among other things at the time of and in connection with the issuance of the Debt Securities and any Guarantees.

        The Warrants will be issued pursuant to a warrant agreement (the "Warrant Agreement") between the Company and a warrant agent.

        In arriving at the opinions expressed below, we have examined (i) the certificate of incorporation and by-laws of each of the Companies, (ii) the Registration Statement, (iii) the Prospectus, (iv) the form of Senior Indenture and the form of Subordinated Indenture, and (v) originals or copies certified or otherwise identified to our satisfaction of such other instruments and other certificates of public officials, officers and representatives of the Companies and such other persons, and we have made such investigations of law, as we have deemed appropriate as a basis for the opinions expressed below.

        In rendering the opinions expressed below, we have assumed and have not verified (i) the genuineness of the signatures on all documents that we have examined, (ii) the legal capacity of all natural persons, (iii) the authenticity of all documents supplied to us as originals and (iv) the



conformity to the authentic originals of all documents supplied to us as certified or photostatic or faxed copies. In conducting our examination of documents, we have assumed the power, corporate or other, of all parties thereto other than the Companies to enter into and perform all obligations thereunder and have also assumed the due authorization by all requisite action, corporate or other, and the due execution and delivery by such parties of such documents and that, except as set forth in the numbered opining paragraphs below in respect of the Companies with respect to the instruments therein referred to, to the extent such documents purport to constitute agreements, such documents constitute valid and binding obligations of such parties.

        In rendering the opinions expressed in paragraphs 2 through 5 below with respect to the Securities therein referred to, we have assumed that:


        Based upon and subject to the foregoing, and subject also to the limitations and other assumptions and qualifications set forth below, we are of the opinion that:


        Each of the opinions above is subject to applicable bankruptcy, insolvency (including, without limitation all laws relating to fraudulent transfer or conveyance), reorganization, moratorium and other similar laws affecting creditors' rights generally and to general principles of equity (regardless of whether considered in a proceeding in equity or at law) including, without limitation, (a) the possible unavailability of specific performance, injunctive relief or any other equitable remedy, (b) concepts of materiality, reasonableness, conscionability, good faith and fair dealing and (c) the discretion of a court sitting in equity, and we express no opinions herein with respect to provisions relating to severability or separability. The opinions expressed above are also subject to possible judicial action giving effect to governmental actions or foreign laws affecting creditors' rights.

        This opinion is expressed as of the date hereof, and we disclaim any undertaking to advise you of any subsequent changes in applicable law, and we have assumed that at no future time would any such subsequent change of fact or law affect adversely our ability to render at such time an opinion (a) containing the same legal conclusions set forth herein and (b) subject only to such (or fewer) assumptions, limitations and qualifications as are contained herein.


        We express no opinion other than as to the laws of the States of New York and Delaware and, to the extent relevant, the federal laws of the United States of America. We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the reference to this firm under the heading "Legal Matters" in the Prospectus. In giving this consent we do not admit that we are "experts" under the Act, or the rules and regulations of the Commission issued thereunder, with respect to any part of the Registration Statement, including this exhibit.

    Very truly yours,

 

 

Andrews Kurth LLP