Cheniere Receives Additional DOE Approval, Authorization to Export Natural Gas as LNG to all LNG Importing Nations Concluded

By Cheniere Energy Inc. Cheniere Energy Partners L.p., PRNE
Thursday, May 19, 2011

HOUSTON, May 20, 2011 - Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE Amex: CQP)
announced today that on May 20, 2011, its subsidiary, Sabine Pass
Liquefaction, LLC ("Sabine Liquefaction"), received an order from the U.S.
Department of Energy ("DOE") with authorization to export domestically
produced natural gas from the Sabine Pass LNG terminal as liquefied natural
gas ("LNG") to any country that has, or in the future develops, the capacity
to import LNG and with which trade is permissible. This order expands upon
the authorization Sabine Liquefaction received in September 2010, which
authorized the exports of natural gas as LNG to all current and future Free
Trade Agreement countries, and concludes one of the key regulatory
requirements necessary for the Sabine Pass liquefaction expansion project.

Under the order, Sabine Liquefaction received long-term,
multi-contract authority to export on its own behalf, or as agent for others,
up to the equivalent of 803 Bcf per year (approximately 16 million metric
tons per annum ("mtpa")) of domestically produced natural gas as LNG. The
authorization commences the earlier of the first export or five years from
the date of issuance of the authorization. The authorization is conditioned
upon the satisfactory completion of the FERC review process and upon Sabine
commencing export operations within seven years of the issuance of the

"This concluding authorization by the DOE is a significant milestone for
our liquefaction expansion project at Sabine Pass that will transform our
terminal into the first bi-directional LNG processing facility capable of
importing and exporting LNG. Our terminal, designed with substantial
operating flexibility and strategically located on the Gulf of Mexico, will
provide customers the option to purchase or sell LNG from and to U.S.
markets," said Charif Souki, Cheniere Partners' Chairman and CEO. "This is
possible only because of the unique depth of the markets in the Gulf Coast,
both on the production and consumption side; with approximately 30 Bcf/d of
fully integrated physical supply, pipeline infrastructure, storage, and
market delivery capability. With the unprecedented growth in unconventional
reserves, supply of natural gas continues to outpace demand dramatically.
There are currently an estimated 3,500 wells that have been drilled but not
completed with the potential to continue to boost production. The U.S. has an
opportunity to become a significant supplier in the global energy markets."

Mr. Souki added, "The ability to export natural gas will further
stabilize production for U.S. consumers, stimulate the economies through job
creation and provide a boost to American global competitiveness. Exports will
promote domestic production of U.S. energy and help reduce our country's
reliance on foreign sources. Additionally, exports will further advance
public initiatives, such as improving the U.S. balance of trade, advancing
national and foreign security interests by diversifying global natural gas
supplies and replacing environmentally damaging fuels with a cleaner source.
We look forward to being able to participate in such an important event for
the U.S. and worldwide natural gas markets."

Summary Project Update

Sabine Liquefaction will contemplate making a final investment decision
to commence construction upon, among other things, entering into acceptable
commercial arrangements, receiving regulatory authorization to construct and
operate the liquefaction assets and obtaining adequate project and equity
financing. Based on current estimates, construction is expected to commence
in 2012 with operations commencing as early as 2015.

To date, Sabine Liquefaction has entered into non-binding MOUs for an
aggregate of up to 9.8 mtpa of processing capacity, well exceeding the
targeted capacity of 7.0 mtpa to complete the first two trains. Sabine
Liquefaction has begun the process of converting the MOUs into definitive
agreements whereby customers will secure their processing capacity under
long-term take-or-pay contracts. For those customers that are still in
preliminary discussions and have not signed an MOU, Sabine Liquefaction will
proceed directly to negotiating definitive agreements. Given the level of
interest in the project, we expect to construct all four trains with one
train completed every six to nine months beginning in the first half of 2015.

    Summary Project Timeline
    Milestone                        Estimated Completion
    ---------                        --------------------
    DOE export authorization         Approved
    Enter into definitive commercial
     agreements                      Mid 2011
    EPC contract                     2H2011
    Financing commitments            2H2011
    FERC construction authorization  2012
    Commence construction            2012
    Commence operations              2015

Cheniere Partners has placed all of the documentation pertaining to the
liquefaction project, including the applications and supporting studies on
its website located at

Cheniere Partners owns 100 percent of the Sabine Pass LNG receiving
terminal located in western Cameron Parish, Louisiana on the Sabine Pass
Channel with sendout capacity of 4.0 Bcf/d and storage capacity of 16.9 Bcfe.
Cheniere Partners is developing a project to add liquefaction and export
capabilities to the existing infrastructure at the Sabine Pass LNG terminal.
Additional information about Cheniere Energy Partners, L.P. may be found on
its website:

As currently contemplated, the Sabine Pass liquefaction project would be
designed and permitted for up to four modular LNG trains, each with a nominal
capacity of approximately 4.0 mtpa. We anticipate LNG export from the Sabine
Pass LNG terminal could commence as early as 2015, and may be constructed in
phases, with each LNG train commencing operations approximately six to nine
months after the previous train. Commencement of construction is subject to
regulatory approvals and a final investment decision contingent upon Cheniere
Partners obtaining satisfactory construction contracts and entering into
long-term customer contracts sufficient to underpin financing of the project.

This press release contains certain statements that may include
"forward-looking statements" within the meanings 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 Energy
Partners' business strategy, plans and objectives, including the construction
and operation of liquefaction facilities, (ii) statements regarding our
expectations regarding regulatory authorizations and approvals and (iii)
statements expressing beliefs and expectations regarding the development of
Cheniere Energy Partners' LNG terminal and liquefaction business. Although
Cheniere Energy Partners 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
Energy Partners' 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 Energy Partners' 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 Energy Partners does not
assume a duty to update these forward-looking statements.

Investors, Christina Cavarretta, +1-713-375-5100, or Media, Diane Haggard, +1-713-375-5259, both of Cheniere Energy

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