Mergers & Acquisitions and Private Capital Raising

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Legacy client and portfolio investment, BPU Associates, Completes $77 Million Merger

Cheniere Energy Inc. (AMEX:LNG- News) announces that it has acquired BPU LNG Inc. in exchange for 1,000,000 restricted shares of Cheniere's common stock. BPU LNG Inc. holds as its sole asset a 33.3% limited partner Interest in Corpus Christi LNG L.P. (Corpus LNG). As a result of the acquisition of BPU LNG Inc., Cheniere now controls 100% of the Corpus LNG limited partner interests. Cheniere is also the general partner.

In December of 2003, Corpus LNG filed with the Federal Energy Regulatory Commission (FERC) for a permit to build and operate a liquefied natural gas receiving terminal near Corpus Christi, Texas, with daily processing capacity of 2.6 billion cubic feet. On Nov. 18, 2004, FERC issued a draft Environmental Impact Statement (EIS) concluding that approval of the proposed project, with appropriate mitigating measures as recommended, would have limited adverse environmental impact. FERC procedures set forth a public comment period on the draft EIS, which concluded earlier this year. Cheniere anticipates FERC will issue a final EIS and grant its permit in the near future.

Cheniere Energy Inc. is a Houston-based developer of LNG receiving terminals and a Gulf of Mexico E&P company. Cheniere is developing Gulf Coast LNG receiving terminals near Sabine Pass in Cameron Parish, La., in which it holds a 100% ownership interest; near Corpus Christi, Texas, in which it holds a 100% ownership interest; and near the Creole Trail in Cameron Parish, La., in which it holds a 100% ownership interest. Cheniere is also a 30% limited partner in Freeport LNG Development L.P., which is building an LNG receiving terminal in Freeport, Texas. Cheniere conducts exploration for oil and gas in the Gulf of Mexico using a regional database of 7,000 square miles of PSTM 3D seismic data. Cheniere owns 9% of Gryphon Exploration Company, along with Warburg, Pincus Equity Partners L.P., which owns 91%. Additional information about Cheniere Energy Inc. may be found on its Web site at www.Cheniere.com.

BPU Associates formed BPU LNG, Inc. in June 2003 to pursue the development of an LNG receiving terminal on a portion of its land adjacent to its alumina production facility in Corpus Christi, Texas. Legacy was the exclusive financial advisor to BPU in connection with its acquisition and financing of the alumina production facility and related assets from Alcoa, Inc. Legacy earned an equity ownership position in connection with its financial advisory services and additionally funded an investment in BPU to pursue the LNG business.