Name of Reporting Persons:

GSO CAPITAL PARTNERS LP

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    9,631,007

Shared Voting Power:

    0

Sole Dispositive Power:

    9,631,007

Shared Dispositive Power:

    0

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,631,007

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.2%

12.

Type of Reporting Person (See Instructions):

    PN

Name of Reporting Persons:

GSO COF FACILITY LLC

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    4,402,174

Shared Voting Power:

    0

Sole Dispositive Power:

    4,402,174

Shared Dispositive Power:

    0

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    4,402,174

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    6.5%

12.

Type of Reporting Person (See Instructions):

    OO

Name of Reporting Persons:

GSO ADVISOR HOLDINGS L.L.C.

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    9,631,007

Shared Voting Power:

    0

Sole Dispositive Power:

    9,631,007

Shared Dispositive Power:

    0

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,631,007

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.2%

12.

Type of Reporting Person (See Instructions):

    OO

Name of Reporting Persons:

BLACKSTONE HOLDINGS I L.P.

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    9,747,679

Shared Voting Power:

    0

Sole Dispositive Power:

    9,747,679

Shared Dispositive Power:

    0

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,747,679

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.4%

12.

Type of Reporting Person (See Instructions):

    PN

Name of Reporting Persons:

BLACKSTONE HOLDINGS I/II GP INC.

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    9,747,679

Shared Voting Power:

    0

Sole Dispositive Power:

    9,747,679

Shared Dispositive Power:

    0

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,747,679

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.4%

12.

Type of Reporting Person (See Instructions):

    CO

Name of Reporting Persons:

THE BLACKSTONE GROUP L.P.

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    9,747,679

Shared Voting Power:

    0

Sole Dispositive Power:

    9,747,679

Shared Dispositive Power:

    0

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,747,679

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.4%

12.

Type of Reporting Person (See Instructions):

    PN

Name of Reporting Persons:

BLACKSTONE GROUP MANAGEMENT L.L.C.

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    9,747,679

Shared Voting Power:

    0

Sole Dispositive Power:

    9,747,679

Shared Dispositive Power:

    0

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,747,679

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.4%

12.

Type of Reporting Person (See Instructions):

    OO

Name of Reporting Persons:

STEPHEN A. SCHWARZMAN

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    United States

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

Sole Voting Power:

    9,747,679

Shared Voting Power:

    0

Sole Dispositive Power:

    9,747,679

Shared Dispositive Power:

    0

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,747,679

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.4%

12.

Type of Reporting Person (See Instructions):

    IN

Name of Reporting Persons:

BENNETT J. GOODMAN

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    0

Shared Voting Power:

    9,631,007

Sole Dispositive Power:

    0

Shared Dispositive Power:

    9,631,007

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,631,007

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.2%

12.

Type of Reporting Person (See Instructions):

    IN

Name of Reporting Persons:

J. ALBERT SMITH III

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    0

Shared Voting Power:

    9,631,007

Sole Dispositive Power:

    0

Shared Dispositive Power:

    9,631,007

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,631,007

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.2%

12.

Type of Reporting Person (See Instructions):

    IN

Name of Reporting Persons:

DOUGLAS I. OSTROVER

Check the Appropriate Box if a Member of a Group

(a)  ¨        (b)  x

SEC Use Only

Citizenship or Place of Organization:

    Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

Sole Voting Power:

    0

Shared Voting Power:

    9,631,007

Sole Dispositive Power:

    0

Shared Dispositive Power:

    9,631,007

  9.

Aggregate Amount Beneficially Owned by Each Reporting Person:

    9,631,007

10.

Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)

11.

Percent of Class Represented by Amount in Row (9):

    14.2%

12.

Type of Reporting Person (See Instructions):

    IN

(a).   Name of Issuer

Cheniere Energy, Inc. (the “Company”)

(b).  Address of Issuer’s Principal Executive Offices:

700 Milam Street, Suite 800

Houston, Texas 77002

(713) 375-5000

Item 2(a).

Item 2(b).

Item 2(c).

Name of Person Filing

Address of Principal Business Office

Citizenship

(i) GSO Capital Partners LP

280 Park Avenue

New York, NY 10017

Citizenship: State of Delaware

(ii) GSO COF Facility LLC

c/o GSO Capital Partners LP

280 Park Avenue

New York, NY 10017

Citizenship: State of Delaware

(iii) GSO Advisor Holdings L.L.C.

c/o GSO Capital Partners LP

280 Park Avenue

New York, NY 10017

Citizenship: State of Delaware

(iv) Blackstone Holdings I L.P.

c/o The Blackstone Group L.P.

345 Park Avenue

New York, NY 10154

Citizenship: State of Delaware

(v) Blackstone Holdings I/II GP Inc.

c/o The Blackstone Group L.P.

345 Park Avenue

New York, NY 10154

Citizenship: State of Delaware

(vi) The Blackstone Group L.P.

345 Park Avenue

New York, NY 10154

Citizenship: State of Delaware

(vii) Blackstone Group Management L.L.C.

c/o The Blackstone Group L.P.

345 Park Avenue

New York, NY 10154

Citizenship: State of Delaware

(viii) Stephen A. Schwarzman

c/o The Blackstone Group L.P.

345 Park Avenue

New York, NY 10154

Citizenship: United States

(ix) Bennett J. Goodman

c/o GSO Capital Partners LP

280 Park Avenue

New York, NY 10017

Citizenship: United States

(x) J. Albert Smith III

c/o GSO Capital Partners LP

280 Park Avenue

New York, NY 10017

Citizenship: United States

(xi) Douglas I. Ostrover

c/o GSO Capital Partners LP

280 Park Avenue

New York, NY 10017

Citizenship: United States

The foregoing persons are hereinafter sometimes collectively referred to as the “Reporting Persons.”

GSO Capital Partners LP directly holds 134,889 shares of Common Stock (as defined below), GSO Special Situations Fund LP directly holds 2,716,119 shares of Common Stock, GSO COF Facility LLC directly holds 4,402,174 shares of Common Stock and GSO Special Situations Overseas Master Fund Ltd. directly holds 2,377,825 shares of Common Stock. GSO Capital Partners LP is the investment manager of each of GSO Special Situations Fund LP and GSO Special Situations Overseas Master Fund Ltd, and collateral manager of GSO COF Facility LLC. GSO Advisor Holdings L.L.C. is the general partner of GSO Capital Partners LP. Blackstone Distressed Securities Fund L.P. directly holds 116,672 shares of Common Stock. Blackstone Distressed Securities Advisors L.P. serves as the investment advisor to Blackstone Distressed Securities Fund L.P. Blackstone DD Advisors L.L.C. is the general partner of Blackstone Distressed Securities Advisors L.P. Blackstone Holdings I L.P. is the sole member of each of GSO Advisor Holdings L.L.C. and Blackstone DD Advisors L.L.C. Blackstone Holdings I/II GP Inc. is the general partner of

Title of Class of Securities:

Common Stock, par value $0.003 (the “Common Stock”)

If this statement is filed pursuant to Rule 13d-1(b), or 13d-2(b) or (c), check whether the person filing is a:

Not Applicable.

Ownership.

(a) Amount beneficially owned:

As of the date hereof, each of the Reporting Persons may be deemed to be the beneficial owner of the shares listed on such Reporting Person’s respective reporting page. 134,889 shares of Common Stock are directly held by GSO Capital Partners LP, 2,716,119 shares of Common Stock are directly held by GSO Special Situations Fund LP, 4,402,174 shares of Common Stock are directly held by GSO COF Facility LLC, 2,377,825 shares of Common Stock are directly held by GSO Special Situations Overseas Master Fund Ltd. and 116,672 shares of Common Stock are directly held by Blackstone Distressed Securities Fund L.P.

(b) Percent of class:

Amendment No. 1 to the Company’s registration statement on Form 10-Q, filed on November 8, 2010, indicated that there were 57,643,732 outstanding shares of Common Stock as of November 1, 2010. Based on this number of outstanding shares of Common Stock and the additional 10,125,000 shares of Common Stock, including the shares reported in this Form 13G, expected to be issued concurrently with the acquisition of the shares reported on this Form 13G, each of the Reporting Persons may be deemed to be the beneficial owner of the percentage of shares of the total number of outstanding shares of Common Stock as listed on such Reporting Person’s respective reporting page.

(c) Number of Shares as to which the Reporting Person has:

GSO Capital Partners LP

(i)     Sole power to vote or to direct the vote:

9,631,007

(ii)    Shared power to vote or to direct the vote:

0

(iii)  Sole power to dispose or to direct the disposition of:

9,631,007

(iv)   Shared power to dispose or to direct the disposition of:

0

GSO COF Facility LLC

(i)     Sole power to vote or to direct the vote:

4,402,174

(ii)    Shared power to vote or to direct the vote:

0

(iii)  Sole power to dispose or to direct the disposition of:

4,402,174

(iv)   Shared power to dispose or to direct the disposition of:

0

GSO Advisor Holdings L.L.C.

(i)     Sole power to vote or to direct the vote:

9,631,007

(ii)    Shared power to vote or to direct the vote:

0

(iii)  Sole power to dispose or to direct the disposition of:

9,631,007

(iv)   Shared power to dispose or to direct the disposition of:

0

Blackstone Holdings I L.P.

(i)     Sole power to vote or to direct the vote:

9,747,679

(ii)    Shared power to vote or to direct the vote:

0

(iii)  Sole power to dispose or to direct the disposition of:

9,747,679

(iv)   Shared power to dispose or to direct the disposition of:

0

Blackstone Holdings I/II GP Inc.

(i)     Sole power to vote or to direct the vote:

9,747,679

(ii)    Shared power to vote or to direct the vote:

0

(iii)  Sole power to dispose or to direct the disposition of:

9,747,679

(iv)   Shared power to dispose or to direct the disposition of:

0

The Blackstone Group L.P.

(v)    Sole power to vote or to direct the vote:

9,747,679

(vi)   Shared power to vote or to direct the vote:

0

(vii) Sole power to dispose or to direct the disposition of:

9,747,679

(viii)Shared power to dispose or to direct the disposition of:

0

Blackstone Group Management L.L.C.

(i)     Sole power to vote or to direct the vote:

9,747,679

(ii)    Shared power to vote or to direct the vote:

0

(iii)  Sole power to dispose or to direct the disposition of:

9,747,679

(iv)   Shared power to dispose or to direct the disposition of:

0

Stephen A. Schwarzman

(i)     Sole power to vote or to direct the vote:

9,747,679

(ii)    Shared power to vote or to direct the vote:

0

(iii)  Sole power to dispose or to direct the disposition of:

9,747,679

(iv)   Shared power to dispose or to direct the disposition of:

0

Bennett J. Goodman

(i)     Sole power to vote or to direct the vote:

0

(ii)    Shared power to vote or to direct the vote:

9,631,007

(iii)  Sole power to dispose or to direct the disposition of:

0

(iv)   Shared power to dispose or to direct the disposition of:

9,631,007

J. Albert Smith III

(i)     Sole power to vote or to direct the vote:

0

(ii)    Shared power to vote or to direct the vote:

9,631,007

(iii)  Sole power to dispose or to direct the disposition of:

0

(iv)   Shared power to dispose or to direct the disposition of:

9,631,007

Douglas I. Ostrover

(i)     Sole power to vote or to direct the vote:

0

(ii)    Shared power to vote or to direct the vote:

9,631,007

(iii)  Sole power to dispose or to direct the disposition of:

0

(iv)   Shared power to dispose or to direct the disposition of:

9,631,007

Ownership of Five Percent or Less of a Class

If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following:  ¨

Ownership of More than Five Percent on Behalf of Another Person.

Not Applicable.

Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company.

Not Applicable.

Identification and Classification of Members of the Group.

Not Applicable.

Notice of Dissolution of Group.

Not Applicable.