Exhibit 99.1

                       Cheniere Energy and Morgan Stanley
         Capital Group to Cooperate in Seeking to Procure Long-Term LNG
                           Supplies for North America


    HOUSTON--(BUSINESS WIRE)--Oct. 20, 2005--Cheniere Energy, Inc.
(AMEX:LNG) and Morgan Stanley Capital Group Inc. announced their
intent to seek to procure liquefied natural gas (LNG) supplies for
North America. Cheniere LNG Trading & Marketing, Inc. (Cheniere LNG
Marketing) and Morgan Stanley Capital Group Inc. (MSCG) will work
cooperatively in negotiating with global suppliers to deliver supplies
through Cheniere's LNG receipt network comprised of Cheniere's wholly
owned LNG receiving terminals where Cheniere LNG Marketing will hold
capacity.
    Keith Meyer, president of Cheniere LNG Marketing said, "We look
forward to seeing our relationship with Morgan Stanley grow as we work
together to achieve our company's goal of fostering the marriage
between North American natural gas demand and global LNG supply."
    Simon Greenshields, Managing Director of Morgan Stanley Capital
Group Inc. said, "Morgan Stanley's relationships, financial
capabilities and substantial presence in the domestic power and gas
markets make us a logical partner for LNG producers seeking entry to
the U.S. marketplace. Our relationship with Cheniere is intended to
provide us access to premier receipt terminals in the Gulf Coast."
    Morgan Stanley Capital Group Inc is a direct, wholly owned
subsidiary of Morgan Stanley, a large and diversified global financial
services firm. It is also an active participant in global commodities
markets, including electricity, natural gas, petroleum, and base and
precious metals.
    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. It is also developing
100% owned Gulf Coast LNG receiving terminals near Corpus Christi, TX,
and near the Creole Trail in Cameron Parish, LA. Cheniere is 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 natural gas in the Gulf of Mexico using a regional database of
7,000 square miles of PSTM 3D seismic data. 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., Houston
             David Castaneda, 713-265-0202