Exhibit 10.1
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                     Summary of 2006 Performance Bonus Plan
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     All of the executive officers of Cheniere Energy,  Inc. (the "Company") are
eligible for a  discretionary  annual  performance  bonus,  as determined by the
Section 162(m) Subcommittee (the  "Subcommittee") of the Compensation  Committee
of the Board of Directors of the Company subject to the Company achieving either
a  minimum  increase  in the  Company's  net  asset  value  per  share  or total
stockholder  return from  January 1, 2006  through  December 31, 2006 (the "2006
Performance Period"). The amount of the bonus payment under the 2006 performance
plan will be  determined  by the  Subcommittee  after  December  31,  2006.  All
payments,  if any,  with respect to the phantom stock shall be made on or before
March 15,  2007.  The table  below  sets forth the  maximum  number of shares of
phantom  stock with respect to which the Company's  executive  officers have the
right to receive Company common stock or cash at the end of the 2006 Performance
Period.

                             2006 Performance Awards

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                                                     Maximum Number of Shares of
       Covered Employee                                   Phantom Stock (1)
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Charif Souki, Chairman and Chief
  Executive Officer                                            100,000
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Walter L. Williams, Vice Chairman                               30,000
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Stanley C. Horton, President and Chief
  Executive Officer                                             75,000
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Jonathan Gross, Senior Vice President-
  Exploration                                                   30,000
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Zurab S. Kobiashvili, Senior Vice President
  and General Counsel                                           30,000
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Keith M. Meyer, Senior Vice President-LNG                       30,000
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Don A. Turkleson, Senior Vice President, Chief
  Financial Officer and Secretary                               30,000
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     (1)  Notwithstanding the number of shares listed herein, the maximum number
of shares of phantom stock awarded to any covered  employee shall not exceed the
maximum  award  permitted  under the  Company's  Amended and Restated 2003 Stock
Incentive  Plan,  taking into account any other  awards  granted to such covered
employee during the calendar year.