EXHIBIT 10.2

EXECUTION COPY

CONSENT AND WAIVER NO.3

TO CREDIT AGREEMENT

This CONSENT AND WAIVER NO. 3 TO CREDIT AGREEMENT (this “Consent and Waiver”), dated as of April 25, 2005, is made among Sabine Pass LNG, L.P., a Delaware limited partnership (the “Borrower”), Société Générale, in its capacity as administrative agent for the Lenders (the “Agent”), HSBC Bank USA, National Association, in its capacity as collateral agent for the Lenders (the “Collateral Agent”) and the Lenders party to the Credit Agreement (as defined below).

W I T N E S S E T H

WHEREAS, the Borrower, the Agent and the Collateral Agent are party to a Credit Agreement dated as of February 25, 2005 (as amended, modified and supplemented and in effect from time to time, the “Credit Agreement”), pursuant to which the lenders from time to time party thereto (the “Lenders”) have agreed to make loans to the Borrower in an aggregate principal amount of $822,000,000;

WHEREAS, the Borrower and Bechtel Corporation (the “EPC Contractor”) have entered into an Engineering, Procurement and Construction Agreement (the “EPC Contract”) relating to the Project;

WHEREAS, the Borrower desires to amend certain provision of Attachment EE to the EPC Contract in order to reflect the Tank Subcontractor October 2004 updated material pricing proposal to the EPC Contractor; and

WHEREAS, the Borrower has requested that the Lenders consent to the Borrower entering into Change Order SP/BE-006 (the “Change Order”), attached hereto as Exhibit B, to effect the necessary amendments to Attachment EE to the EPC Contract, as more fully described in the waiver request letter (the “Waiver Request Letter”) attached hereto as Exhibit A.

NOW THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

Section 1. Definitions. Capitalized terms (including those used in the preamble and the recitals above) not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement and the principles of interpretation set forth therein shall apply herein.

Section 2. Consent and Waiver. Subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, the Agent, the Collateral Agent and the Lenders hereby consent to the Borrower entering into the Change Order. In addition, the Lenders hereby waive (1) compliance with Section 8.20(e) of the Credit Agreement solely to the extent necessary to

Consent and Waiver No. 3

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permit the Borrower to enter into the Change Order and (ii) any Defaults or Events of Default arising directly as a result of the Borrower’s entering into the Change Order.

Section 3. Conditions Precedent. This Consent and Waiver shall become effective on the date on which the Agent has received counterparts of this Consent and Waiver duly executed and delivered by each of the Borrower, the Agent, the Collateral Agent and the Majority Lenders.

Section 4. Miscellaneous.

(a) Limited Waiver.

(i) Except as expressly consented to or waived hereby, all of the representations, warranties, terms, covenants, conditions and other provisions of the Credit Agreement and the other Financing Documents shall remain unchanged and unwaived and shall continue to be and shall remain in full force and effect in accordance with their respective terms.

(ii) The consent and waivers set forth herein shall be limited precisely as provided for herein to the provisions expressly consented to or waived and shall not be deemed to be a waiver of any right, power or remedy of any Lender, the Agent or the Collateral Agent under, or a waiver of, consent to or modification of any other term or provision of the Credit Agreement, any other Financing Document referred to therein or herein or of any transaction or further or future action on the part of the Borrower which would require the consent of the Lenders under the Credit Agreement or any of the other Financing Documents.

(iii) Except as provided in Section 2 hereof, nothing contained in this Consent and Waiver shall abrogate, prejudice, diminish or otherwise affect any powers, rights, remedies or obligations of any Person arising before the date of this Consent and Waiver.

(b) Financing Document. This Consent and Waiver shall be deemed to be a Financing Document referred to in the Credit Agreement and shall be construed, administered and applied in accordance with the terms and provisions thereof.

(c) Counterparts; Integration; Effectiveness. This Consent and Waiver may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any parties hereto may execute this Consent and Waiver by signing any such counterpart.

(d) Costs and Expenses. The Borrower agrees to pay and reimburse the Agent for all its reasonable costs and out-of-pocket expenses (including, without limitation, the reasonable fees and expenses of counsel to the Agent and the Lenders) incurred in connection with the preparation and delivery of this Consent and Waiver and such other related documents.

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(e) Governing Law. THIS CONSENT AND WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[Signature Pages Follow]

Consent and Waiver No. 3

IN WITNESS WHEREOF, the parties hereto have caused this Consent and Waiver to be duly executed and delivered as of the day and year first above written.

Consent and Waiver No. 3

Consent and Waiver No. 3

Consent and Waiver No. 3

Exhibit A to Consent and

Waiver No. 3

Waiver Request Letter

(see attached)

Consent and Waiver No. 3

April 12, 2005

Societe Generale

1221 Avenue of the Americas

New York, NY 10020

Attn: Robert Preminger

Gentlemen:

Pursuant to section 8.20(e) of the above referenced Agreement, Sabine is hereby requesting the consent of the Majority Lenders to make the following modifications to Attachment EE to the EPC Contract:

Please note that the pricing proposal quoted by the tank subcontractor for the 9% nickel steel adjustment is only valid through April 26, 2005. Accordingly, we request consent to these proposed changes to Attachment EE no later than April 22, 2005 to allow adequate time to place the 9% nickel steel order.

Very truly yours,

Sabine Pass LNG, L.P

CHENIERE ENERGY, INC.

717 Texas Avenue, Suite 3100 • Houston, Texas 77002 • (713) 659-1361 • Fax (713) 659-5459

Exhibit B to Consent and

Waiver No. 3

Change Order

(see attached)

DRAFT

SCHEDULE D-1

CHANGE ORDER FORM

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Adjustment to Minimum Acceptance Criteria: None

Adjustment to Performance Guarantees: None

Adjustment to Design Basis: None

Other adjustments to liability or obligation of Contractor or Owner under the Agreement:

Table 1, Sample Calculation Through October 2004

Owner, Contractor, and the Tank Subcontractor have also jointly developed a package, as per Contractor letter to Owner dated March 17, 2005, which provides supporting details and adequately documents the formulas for the Tank Subcontract

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Materials Adjustments shown in Attachment EE, Rev. 1. Contractor will confirm quantities provided by Tank Subcontractor for rebar by September 2005 and will confirm remaining quantities provided by Tank Subcontractor for structural steel by December 2005. All other quantities have been provided to Owner.

Attachment EE Rev 1 and the Change Order will prevail should any inconsistency occur between Contractor letter of March 17, 2005, and Attachment EE Rev 1 and the Change Order.

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order. Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect. This Change Order is executed by each of the Parties’ duly authorized representatives.

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ATTACHMENT EE Rev 1

STAINLESS STEEL ADJUSTMENT, TANK SUBCONTRACT MATERIALS

ADJUSTMENT, MARINE LOADING ARM ADJUSTMENT AND BOG COMPRESSOR

ADJUSTMENT

1. STAINLESS STEEL ADJUSTMENT

1.1 Stainless Steel Adjustment

The Stainless Steel Adjustment, which is used to account for the changes in commodity pricing of 304L stainless steel pipe, fittings and flanges as described in Section 7.1D of the Agreement, shall be determined in accordance with this Section 1. All calculations shall be rounded to four (4) decimal places.

1.2 Step 1, Determine Base Metal Price at NTP

The above Ni_base, Cr_base and Fe_base shall be as published by North American Stainless at website http://www.northamericanstainless.com, using the commercial information/flat alloy surcharge and the averages cited for two (2) Months prior to NTP. For example, if the NTP is given in March 2005, the Monthly average for January 2005 shall be used.

1.3 Step 2, Calculate Alloy Surcharge for Pipe “Pipe_sch” at NTP

Pipe_sch = 0.096*(Ni_base – 2.0) + 0.216*(Cr_base – 0.35) + 0.8388*(Fe_base – 0.0625)

1.4 Step 3, Determine Base Price for Pipe at NTP

The base price for stainless pipe at NTP (“Pipe_base”) shall be the pricing index “Stainless Steel Pipe & Tube – 4-1/2 in. to 16 in.” for the Month in which the NTP is issued, as specified in the pricing index database maintained by Preston Pipe & Tube Report, expressed in U.S. Dollars per lb.

1.5 Step 4, Determine Piping Component of Adjustment

Pipe_NTP = U.S.$10,860,880*[((Pipe_sch + Pipe_base)/1.4635) – 1]

1.6 Step 5, Calculate Alloy Surcharge for Fittings at NTP

Ftg_sch = 1.0836* Pipe_sch

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1.7 Step 6, Determine Fitting Component of Adjustment

Ftg_NTP = U.S.$3,100,000*[((Ftg_sch + Pipe_base)/1.4938) – 1]

1.8 Step 7, Calculate Stainless Steel Adjustment

In accordance with Section 7.1D of the Agreement, the Contract Price shall be adjusted by the Stainless Steel Adjustment (“SS_adj”), which shall be determined as follows:

SS_adj (in U.S.$) = Pipe_NTP + Ftg_NTP

The Stainless Steel Adjustment shall be paid as an adjustment to the applicable Milestone(s) in Schedule C-1.

2. MARINE LOADING ARM ADJUSTMENT AND BOG COMPRESSOR ADJUSTMENT

2.1 Introduction

The Marine Loading Arm Adjustment (“Arm_adj”) and BOG Compressor Adjustment (“BOG_adj”), which are used to take into account currency fluctuations, shall be determined in accordance with this Section 2. All calculations shall be rounded to four (4) decimal places. All currency exchange rates shall be determined using FxConverter on website http://www.oanda.com/convert/classic.

In accordance with Section 7.1F of the Agreement, the Contract Price shall be adjusted by the Marine Loading Arm Adjustment, which shall be determined as follows:

Arm_adj (in U.S.$) = U.S.$6,289,705 * ((0.79177/ Euro_NTP – 1)

Where:

Euro_NTP = The currency exchange rate for Euros compared to U.S.$ (Euro/U.S.$), defined as the Interbank rate, median price (ask) for the Day of the Notice to Proceed.

In accordance with Section 7.1 G of the Agreement, the Contract Price shall be adjusted by the BOG Compressor Adjustment, which shall be determined as follows:

BOG_adj (in U.S.$) = U.S.$8,314,332 * ((107.35/Yen_NTP) – 1)

Where:

Yen_NTP = The currency exchange rate for Japanese Yen compared to U.S.$ (Yen/U.S.$) defined as the Interbank rate, median price (ask) for the Day of the Notice to Proceed.

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The Marine Loading Arm and BOG Compressor Adjustment shall be paid as an adjustment to the applicable Milestone(s) in Schedule C-1.

3. TANK SUBCONTRACT MATERIALS ADJUSTMENT

3.1 Adjustment Date

The Tank Subcontract Materials Adjustment, which is used to account for changes in commodity pricing of certain materials used in the Tanks, shall be determined in accordance with this Section 3.

The Adjustment Date for determining the Tank Subcontract Materials Adjustment shall be the date as advised in writing to Owner by the Tank Subcontractor through Contractor. The Adjustment Date for Section 3.2 is the Day that Tank Subcontractor places a purchase order for 9% Nickel Steel. The “Adjustment Date” for Sections 3.3 through 3.8 shall be the respective Days the Tank Subcontractor receives (ex-mill) the materials, or portions thereof, listed in Sections 3.3 through 3.8 hereunder. If the Tank Subcontractor receives the materials in partial shipments, the formulas in Sections 3.3 through 3.8 will be adjusted by using the corresponding percentage of material received.

Except for SSC₁ defined in Section 3.4 hereunder, the “Purchasing Magazine Business Information Center Price Index” (available through subscription at www.Purchasing.com) shall be the applicable Purchasing Magazine Business Information Center Indices defined in Sections 3.2 through 3.8 below available on the Adjustment Date.

3.2 Adjustment for 9% Nickel Steel Materials (“9Ni_adj”)

9Ni_adj = U.S. $4,739,797 + (4644*((0.09 * N₁) – 1209.6))

Where “N₁” is the 3-Month Bid price of nickel (in U.S.$/metric ton), as published in the Wall Street Journal on the Day of the Adjustment Date

If Owner does not issue the NTP to Contractor pursuant to 5.2.B of the Agreement on or before April 26, 2005, then the formula set forth in this Section 3.2 will be renegotiated.

3.3 Adjustment for Rebar and Anchors (“Rebar_adj”)

Rebar_adj = U.S.5551,955*(( R₁/360) – 1)

Where “R₁” is the Purchasing Magazine Business Information Center Price Index for “Steel, reinforcing bar (PURPRI50D208)” for the Month of the Adjustment Date.

3.4 Adjustment for Tank Stainless Steel (“TankSS_adj”)

TankSS_adj = U.S.$524,846*[((S₁+SSC₁,)/2502.2) – 1]

Where:

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S₁ is the Purchasing Magazine Business Information Center Price Index for “Stainless steel, hot rolled plate (PURPRI50D210)”, for the Month of the Adjustment Date; and

SSC₁ is the current Allegheny Ludlum “Raw Material Surcharge for 304/304L Stainless Steel”, as published on website http://www.alleghenyludlum.com, for the Month of the Adjustment Date.

3.5 Adjustment for Aluminum Materials (“Al_adj”)

Al_adj = U.S.$1,266,458*((Al₁/110) – 1)

Where “Al₁” is the Purchasing Magazine Business Information Center Price Index for Aluminum, grade 3003 common alloy sheet (PURPRI50D303), for the Month of the Adjustment Date.

3.6 Adjustment for Carbon Steel Materials (“CS_adj”)

CS_adj = U.S.$8,279,434*((CS₁/370) – 1)

Where “CS₁” is the Purchasing Magazine Business Information Center Price Index for Steel, hot rolled plate (PURPRI50D204) for the Month of the Adjustment Date.

3.7 Adjustment for Structural Steel Materials (“ST_adj”)

ST_adj = U.S.$5,259,827*((ST₁/385) – 1)

Where “ST₁” is the Purchasing Magazine Business Information Center Price Index for Steel, wide-flange beams (PURPRI50D206) for the Month of the Adjustment Date.

3.8 Adjustment for Piping and Valves (“PV_adj”)

PV_adj = U.S.$6,463,670*0.5*[((S₁+ SSC₁)/ 2502.2) – 1]

Where S₁ and SSC₁ are as specified in Section 3.4 above.

3.9 Tank Subcontract Materials Adjustment

In accordance with Section 7.1E, the Contract Price shall be adjusted by the Tank Subcontract Materials Adjustment (“Tank_adj”), which shall be determined as follows:

Tank_adj (in U.S.$) = Rebar_adj + 9Ni_adj + TankSS_adj + Al_adj + CS_adj + ST_adj + PV_adj

3.10 Invoicing and Support Documentation

The Parties agree that the Adjustments calculated in accordance with this Section 3 for materials used in the Tanks shall be invoiced in the Month immediately following the Month in which the materials are received (ex-mill or ex-works) by the Tank Subcontractor. Contractor’s Invoice for

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the Tank Subcontract Material Adjustments shall include for each of the materials in Section 3.2 through 3.8 the date of the receipt of the materials, the percentage of materials received and the applicable Index for the Adjustment Date. Reasonably sufficient supporting documentation sufficient for the approval of the Tank Subcontract Materials Adjustments by Owner shall consist of: a) Contractor’s Invoice, b) Tank Subcontractor’s Invoice, e) total quantities, d) percentage received based on actual weight or weighting, e) bill of lading or other document evidencing date of receipt of materials, f) calculation of applicable escalation, and g) index in effect as of date materials received, all of which shall be made available to Owner to verify the materials adjustment calculation and the partial materials shipment percentage, if applicable. Contractor will provide to Owner updated projections of material shipment dates during the materials delivery phase.

The Contract Price shall be adjusted by Change Order every six (6) Months (or such other earlier period as requested by Owner) to account for the Tank Subcontract Material Adjustments occurring during such six (6) Month period, with the first such Change Order occurring in the second Month following NTP and with the last Change Order occurring in the Month following the last Tank Subcontract Material Adjustment.

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