Cheniere Partners Board Approves Sabine Pass Liquefaction Trains 3 and 4

May 31, 2013

The Board of Directors at Cheniere Energy Partners, L.P. has made a positive final investment decision for the development and construction of Trains 3 and 4 of the Sabine Pass Liquefaction Project being developed adjacent to the Sabine Pass LNG terminal (the "Liquefaction Project"), the company reported in a news release.

Cheniere Partners has issued a full notice to proceed with construction of Trains 3 and 4 to Bechtel Oil, Gas and Chemicals, Inc. ("Bechtel").

Sabine Pass Liquefaction, LLC ("Sabine Liquefaction"), a wholly owned subsidiary of Cheniere Partners, has closed on credit facilities totaling $5.9 billion, including a Term Loan A Credit Facility of $4.4 billion ("TLA Credit Facility") with a syndicate of 27 joint lead arranger banks and financial institutions and three additional credit facilities with Republic of Korea financial institutions, The Export-Import Bank of Korea (KEXIM) and Korea Trade Insurance Corporation (K-SURE), of $1.5 billion (the "ROK Credit Facilities" and collectively with the TLA Credit Facility, the "Liquefaction Credit Facilities").  These Liquefaction Credit Facilities complete the financings needed to fund the costs of developing, constructing and placing into service the first four liquefaction trains of the Liquefaction Project.

The Liquefaction Credit Facilities mature on May 28, 2020.  Interest on the TLA Credit Facility is LIBOR plus 300 basis points during construction and steps up to LIBOR plus 325 basis points during operation.  Under the ROK Credit Facilities, interest includes LIBOR plus 300 basis points on the direct portion and LIBOR plus 230 basis points on the covered portion during construction and operation.  Sabine Liquefaction will maintain interest rate protection agreements with respect to at least 75% of the Liquefaction Credit Facilities.

"We have completed all milestones to start construction on the first four liquefaction trains being developed by Sabine Liquefaction.  Construction on Trains 1 and 2 commenced last August and is approximately 30% complete.  Construction on Trains 3 and 4 will start immediately.  First LNG is expected to be delivered by late 2015.  Additionally, we expect to complete all of the required resource reports to file an application with the FERC by September 2013 for Trains 5 and 6," CEO Charif Souki said.

Societe Generale acted as sole and exclusive financial advisor to Sabine Liquefaction in connection with the $5.9 billion Liquefaction Credit Facilities. Standard Chartered Bank acted as a consultant in connection with the ROK Credit Facilities.

In addition, Cheniere Partners has completed the acquisition of the Creole Trail Pipeline from subsidiaries of Cheniere Energy, Inc. as previously contemplated by the Creole Trail Purchase and Sale Agreement.  The Creole Trail Pipeline is a 94-mile pipeline that will be used by the Liquefaction Project to source domestic natural gas for processing into LNG.  In connection with the Creole Trail Pipeline purchase, a subsidiary of Cheniere Partners has entered into a $400 million senior secured term loan facility (the "CTPL Term Loan").  The CTPL Term Loan bears an interest rate of LIBOR plus 325 basis points and has a maturity of four years. The proceeds of the CTPL Term