Exhibit 99.1

 Cheniere Energy Subsidiary Cheniere LNG Holdings Closes $600 Million
                   Senior Secured Term Loan Due 2012

    HOUSTON--(BUSINESS WIRE)--Aug. 31, 2005--Cheniere Energy, Inc.
(AMEX:LNG) announced that its indirect, wholly owned subsidiary,
Cheniere LNG Holdings, LLC, has closed on a $600 million Senior
Secured Term Loan ("Term Loan") with Credit Suisse. The Term Loan has
a rate of London Interbank Offered Rate (LIBOR) plus 2.75% and is due
in 2012. In connection with the closing, Cheniere LNG Holdings has
entered into swap agreements with Credit Suisse to hedge the LIBOR
interest rate component of the Term Loan. The blended results of the
swap agreements on the Term Loan are an annual fixed interest rate of
7.25% for the first 5 years.
    Cheniere LNG Holdings owns Cheniere Energy's 100% equity interest
in Sabine Pass LNG, L.P. and Cheniere's 30% limited partner equity
interest in Freeport LNG Development, L.P., each of which owns an LNG
receiving terminal project that is currently under construction.
    The Term Loan proceeds will be used to fund: (1) Cheniere's
remaining equity requirements for the construction of the Sabine Pass
LNG receiving terminal; (2) a reserve account for Term Loan debt
service obligations and pre-operating expenses; (3) fees and expenses
of the transaction; (4) Cheniere's equity requirements including funds
for the potential expansion of the Sabine Pass LNG receiving terminal,
construction of the Corpus Christi and/or the Creole Trail LNG
receiving terminals and pipelines from Cheniere's various LNG
receiving terminals; and/or (5) Cheniere's general corporate purposes.
    Cheniere Energy, Inc. is a Houston based energy company engaged in
developing LNG Receiving Terminals and Gulf of Mexico Exploration &
Production. Cheniere is building a 100% owned Gulf Coast LNG Receiving
Terminal near Sabine Pass in Cameron Parish, LA and developing 100%
owned Gulf Coast LNG Receiving Terminals near Corpus Christi, TX, and
near the Creole Trail in Cameron Parish, LA. Cheniere is also a 30%
limited partner in Freeport LNG Development, L.P., which is building
an LNG Receiving Terminal in Freeport, Texas. Cheniere explores for
oil and gas in the Gulf of Mexico using a regional database of 7,000
square miles of PSTM 3D seismic data. Cheniere 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. No registration has been or will be made under the
Securities Act of 1933 or any other securities laws in connection with
the term loan facility.

    CONTACT: Cheniere Energy, Inc., Houston
             David Castaneda, 713-265-0202