Exhibit 99.1

   Cheniere Energy Closes Sale of 5 Million Shares of Common Stock;
    ChevronTexaco Terminates Equity Negotiations on Sabine Pass LNG

    HOUSTON--(BUSINESS WIRE)--Dec. 8, 2004--Cheniere Energy, Inc.
(AMEX:LNG) announced that it has closed its previously announced
public offering of 5 million shares of common stock at $60 per share,
generating net cash proceeds of approximately $286,100,000 after
deduction of underwriting discounts and expenses. The offering was
made under the Company's currently effective shelf registration
statement. Net proceeds are expected to be used to fund the equity
requirements of the project financing for Cheniere's Sabine Pass LNG
receiving terminal or other general corporate purposes.
    Separately, after closing of the public offering, Cheniere
Energy's wholly owned limited partnership Sabine Pass LNG, L.P.
(Sabine) received notice from ChevronTexaco that Chevron U.S.A. Inc.
(CUSA) has determined not to continue negotiations regarding CUSA's
proposed acquisition of an equity interest in Sabine. ChevronTexaco
also notified Cheniere that, as previously announced, CUSA will advise
Sabine on or before December 20, 2004, whether it will proceed forward
with its November 8, 2004, Terminal Use Agreement as a long-term user
of reserved capacity at Cheniere's Sabine Pass LNG terminal.
    Cheniere Energy, Inc. is a Houston-based developer of LNG
Receiving Terminals and a Gulf of Mexico E&P company. Cheniere is
developing Gulf Coast LNG Receiving Terminals near Sabine Pass in
Cameron Parish, LA, in which it holds 100%; near Corpus Christi, TX,
in which it holds 66.7%; and near the city of Cameron in Cameron
Parish, LA in which it holds 100%. 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.

    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.
             David Castaneda, 713-265-0202
             Info@Cheniere.com