Cheniere Energy Making Head Way on Texas LNG Project

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Cheniere Energy Incorporated (ASE:CXY) (Houston, Texas) has entered into an agreement with Freeport LNG Development, L.P. (Houston, Texas) for the development of a new LNG receiving terminal to be constructed in Freeport, Texas. Freeport LNG Development, headed by Michael S. Smith, has acquired a 60 percent interest in the project for $5 million in cash and the promise to spend up to $9 million to obtain the necessary permits and bring the project to the construction stage.

The terminal will receive LNG by tanker and has a planned regasification capacity of one billion cubic feet per day. Construction is slated to begin in late 2003 or early 2004 to meet the completion timeline of late 2005. The capital investment needed to complete this project is estimated to be over $400 million.

The Freeport project is one of three LNG receiving terminals Cheniere Energy is planning on the Texas Coast. When constructed the facilities will tie into the natural gas pipeline grid in Texas.