Exhibit 99.1

CHENIERE ENERGY INC. NEWS RELEASE

CONTACT: David E. Castaneda

INVESTOR & MEDIA RELATIONS

1-888-948-2036

E-mail: LNG@MDCGroup.com

Freeport LNG Development and Dow Chemical Reach 20-Year LNG Terminal Use Agreement

Houston – February 26, 2004 – Cheniere Energy, Inc. (AMEX: LNG) announced today that Freeport LNG Development, L.P. (Freeport LNG), in which Cheniere holds a 30 percent limited partnership interest, reached a 20-year terminal use agreement (TUA) with The Dow Chemical Company (NYSE:DOW) for up to 500 million cubic feet per day (mmcf/d) of throughput capacity at Freeport LNG’s proposed liquefied natural gas (LNG) receiving terminal located on Quintana Island, near Freeport, Texas, pursuant to an option it had acquired in June 2003.

Under the terms of the TUA, Dow has made a firm commitment to reserve throughput capacity for 1.8 million tons of LNG per year (250 mmcf/d) and has until August 31, 2004 to exercise an option on the remaining 250 mmcf/d.

The anticipated LNG supply would be used partially to satisfy Dow’s demand for natural gas at its petrochemical facilities located along the Texas Gulf Coast. Dow facilities in Texas and Louisiana consume nearly 600 mmcf/d of natural gas.

Dow is the first industrial energy user in the U.S. to commit to LNG terminal capacity on a long term basis according to Jody Sumrall, Dow business manager for LNG and Texas Gas. “This is an important commitment for Dow; a step we need to take due to the ever-increasing demand for natural gas in the U.S. Importing LNG from other regions, such as South America, Africa and the Middle East, is a small part of a larger energy solution,” said Sumrall. “This development in no way reduces the need for the U.S. to develop new additional sources of domestic natural gas. If we are to restore the domestic chemical industry to a globally competitive position and keep manufacturing jobs in America, the U.S. must further diversify its sources of energy for generating electrical power and all of us will be required to promote and participate in national programs for energy efficiency and conservation.”