Related Party Transactions and Outside Related Director Information

Cheniere Energy, Inc. (LNG)

4/7/2006 Proxy Information

During 2005 and 2004, the Company has made office space available for use by Keith F. Carney, who serves as a member of the Company’s Board of Directors, Audit Committee and Compensation Committee and is the Company’s Lead Director. The Company instituted this arrangement to facilitate its management’s ability to consult and communicate with Mr. Carney. The pro rata amount of office lease expense related to that space was approximately $3,000 for each of the years 2005 and 2004.

In 2005, the Company’s Board of Directors unanimously approved the terms of the charter letter provided by an unrelated third-party entity, Western Airways, Inc., specifying the terms under which it would provide for charter, to the Company, of a Challenger 600 aircraft. One of the Challenger 600 aircraft which may be provided for such services is owned by Bramblebush, LLC. Bramblebush, LLC is owned and/or controlled by the Company’s Chairman of the Board and Chief Executive Officer, Charif Souki. The Company’s Code of Business Conduct and Ethics prohibits potential conflicts of interest. Upon the recommendation of the Audit Committee, which determined that the terms of the charter letter are fair to and in the best interests of the Company, the Board granted an exception under the Company’s Code of Business Conduct and Ethics in order to permit the Company to charter the Challenger 600 aircraft.

In December 2003, Cheniere LNG Services, Inc. (“Cheniere LNG”), a wholly-owned subsidiary of Cheniere, entered into a shareholders’ agreement with J & S Group S.A. (which subsequently assigned the agreement to J&S Energy Holding B.V.) regarding the ownership and operation of J & S Cheniere S.A., a company in which the brother of Charif Souki, Cheniere’s Chairman of the Board of Directors and Chief Executive Officer, is managing director. In January 2004, J&S Cheniere paid the Company $1 million for an option to acquire LNG regasification capacity at each of the Company’s Sabine Pass and Corpus Christi LNG facilities. Cheniere LNG owns a minority interest in the stock of J&S Cheniere.