Exhibit 99.1

Cheniere Energy Updates LNG Receiving Terminals' Capacity

    HOUSTON--(BUSINESS WIRE)--Sept. 8, 2004--Cheniere Energy Inc.
(AMEX:LNG) provided an update on the status of capacity at the planned
Freeport LNG receiving terminal in which it holds a 30 percent limited
partnership interest. On March 1, 2004, Freeport LNG Development LP
(Freeport) finalized its agreement with The Dow Chemical Company
(NYSE:DOW) for 500 million cubic feet per day (mmcf/d) of capacity,
with an option for Dow to reduce this amount to 250 mmcf/d on or
before Aug. 31, 2004. Dow is maintaining its commitment to 500 mmcf/d
of regasification capacity at the terminal.
    On Sept. 3, 2004, Cheniere reported that its wholly owned
limited partnership, Sabine Pass LNG, L.P., has entered into a
terminal use and related agreement with Total LNG USA Inc., a
subsidiary of Total SA (NYSE:TOT) for 1 bcf/d of capacity at its
planned Sabine Pass terminal.
    Cheniere Energy Inc. is a Houston-based developer of liquefied
natural gas receiving terminals and a Gulf of Mexico E&P company.
Cheniere is developing Gulf Coast LNG receiving terminals near Sabine
Pass, La., and near Corpus Christi, Texas. Cheniere is also a 30%
limited partner in Freeport LNG Development, L.P., which is developing
an LNG receiving terminal in Freeport, Texas. Cheniere conducts
exploration for oil and gas in the Gulf of Mexico using a regional
database of 7,000 square miles of PSTM 3D seismic data. Cheniere also
owns 9% of Gryphon Exploration Company, along with Warburg, Pincus
Equity Partners, L.P. which owns 91%. Additional information about
Cheniere Energy Inc. may be found on its Web site at www.cheniere.com,
by contacting the company's investor and media relations department
toll-free at 888-948-2036 or by writing to Info@Cheniere.com.
    This press release contains certain statements that may include
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. All statements, other than statements of historical facts,
included herein are "forward-looking statements." Included among
"forward-looking statements" are, among other things, (i) statements
regarding Cheniere's business strategy, plans and objectives and (ii)
statements expressing beliefs and expectations regarding the
development of Cheniere's LNG receiving terminal business. Although
Cheniere believes that the expectations reflected in these
forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may prove
to be incorrect. Cheniere's actual results could differ materially
from those anticipated in these forward-looking statements as a result
of a variety of factors, including those discussed in Cheniere's
periodic reports that are filed with and available from the Securities
and Exchange Commission. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Other than as required under the securities laws,
Cheniere does not assume a duty to update these forward-looking
statements.

    CONTACT: Cheniere Energy Inc., Houston
             David Castaneda, 888-948-2036
             Info@Cheniere.com