Annual report pursuant to Section 13 and 15(d)

Cheniere Energy Partners LP

Cheniere Energy Partners LP
12 Months Ended
Dec. 31, 2011
Partners' Capital Notes [Abstract]  
Cheniere Energy Partners LP
As of December 31, 2011, our combined general partner and limited partner ownership interest in Cheniere Partners was approximately 88.8%. As of such date, we held 135,383,831 subordinated units, 11,963,488 common units and a 2% general partner interest in Cheniere Partners.
The portion of the common units held by the public is presented as a non-controlling interest on our Consolidated Balance Sheets. Losses attributable to the non-controlling interest are presented separately on our Consolidated Statements of Operations based upon the non-controlling interest’s share of Cheniere Partners’ losses calculated in accordance with Cheniere Partners’ partnership agreement.

Cheniere Partners' cash distribution policy is consistent with the terms of its partnership agreement, which requires that it distribute all of its available cash quarterly. During the subordination period, the common units have the right to receive distributions of available cash from operating surplus in an amount equal to the initial quarterly distribution of $0.425 per quarter, plus any arrearages in the payment of the initial quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. At December 31, 2011, we owned all of the outstanding subordinated units, representing 81% of the limited partner interest in Cheniere Partners. These units are deemed "subordinated" because for a period of time, referred to as the subordination period, the subordinated units will not be entitled to receive any distributions until after the common units have received the initial quarterly distribution plus any arrearages from prior quarters. Furthermore, no arrearages will be paid on the subordinated units. The practical effect of the subordination period is to increase the likelihood that during this period there will be sufficient available cash to pay the initial quarterly distributions on the common units.