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To: Ed Ajootian who wrote (97263)	2/26/2008 11:29:39 AM
From: Dennis Roth	Read Replies (2) \| Respond to of 206183

Cheniere Energy May Sell Massive LNG Terminal Ruthie Ackerman, 02.25.08, 8:12 PM ET forbes.com It’s an age-old problem: matching supply and demand. A number of liquefied natural gas-receiving terminal companies decided to add capacity for 2008, but now it's looking as if there is too much to go around. Cheniere Energy (amex: LNG - news - people ), a developer of LNG-receiving terminals, said that it is evaluating strategic options for its as-yet unfinished Sabine Pass LNG terminal in order to boost shareholder value. It will be the largest terminal of its kind in North America. “We do not believe that our current market valuation is reflective of the true value of this unique asset, and we are therefore exploring options to enhance value for our shareholders,” Cheniere Chief Executive Charif Souki said. The news sent shares of Cheniere Energy Partners (amex: CQP - news - people ), a subsidiary 90%-owned by Cheniere Energy that controls the Sabine Pass project, up 1.2%, or 21 cents, to close at $17.17. Shares of Cheniere Energy rose 7.5%, or $2.01, to $28.87. Cheniere Energy Partners shares have fallen 18.2% since its initial public offering of $21 on March 21 as the number of receiving liquefied natural gas terminals, like Sabine Pass, which is under construction in Cameron Parish, La., currently far exceeds incoming shipments of LNG. LNG is natural gas condensed into a liquid by cooling. It takes up a fraction of the space of uncooled natural gas, making it significantly cheaper to transport long-distance by ship and tanker truck. LNG-receiving terminals take on LNG from ships and convert it back into gas. The Sabine Pass terminal is scheduled to come on line in the second quarter with an initial send-out capacity of 2.6 billion cubic feet per day, and a peak capacity of 4.3 billion cubic feet per day. Cheniere said it hired Credit Suisse as a financial adviser for the terminal. The Associated Press contributed to this story