----

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| x | ANNUAL REPORT PURSUANT TO SECTION      13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF  1934 |
|---|--------------------------------------------------------------------------------------------|

|  ¨ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------------|----------------------------------------------------------------------------------------------------|

|                                                                |                                      |
|---------------------------------------------------------------------|-------------------------------------------|
| Delaware                                                            | 20-5913059                                |
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |
|                                                                |                                      |
| 700      Milam Street, Suite 800                                    |                                      |
| Houston,      Texas                                                 | 77002                                     |
| (Address      of principal executive offices)                       | (Zip      code)                           |

|                                                         |                                            |
|--------------------------------------------------------------|-------------------------------------------------|
| Common      Units Representing LimitedPartner      Interests | NYSE      Amex Equities                         |
| (Title      of Class)                                        | (Name      of each exchange on whichregistered) |

|                                                |                                |                                         |                                                  |
|-----------------------------------------------------|-------------------------------------|----------------------------------------------|-------------------------------------------------------|
| Large accelerated filer  ¨ | Accelerated filer  x | Non-accelerated filer  ¨ | Smaller reporting company  ¨ |
| (Do      not check if a smaller reporting company)  |                                |                                         |

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| PART      I                                                                                                                              | 1   |
|------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Items 1. and 2. Business and      Properties                                                                                        | 1   |
|  General                                                                                                                            | 1   |
|  Overview of the LNG      Industry                                                                                                  | 1   |
| Our Business Strategy                                                                                                                    | 1   |
| Our      Business                                                                                                                        | 2   |
| Employees and Labor      Relations                                                                                                       | 4   |
| Available Information                                                                                                                    | 4   |
| Item 1A. Risk    Factors                                                                                                            | 5   |
| Risks Relating to Our Financial      Matters                                                                                             | 5   |
| Risks Relating to Our      Business                                                                                                      | 7   |
| Risks Relating to Our Cash      Distributions                                                                                            | 13  |
| Risks Relating to an Investment in Us and Our      Common Units                                                                          | 16  |
| Risks Relating to Tax      Matters                                                                                                       | 20  |
| Item 1B. Unresolved Staff      Comments                                                                                             | 23  |
| Item 3. Legal      Proceedings                                                                                                      | 23  |
| Item 4. Submission of Matters to a Vote of      Security Holders                                                                    | 23  |
| PART      II                                                                                                                             | 23  |
| Item 5. Market for Registrant’s Common      Equity, Related Unitholder Matters and Issuer Purchases of Equity      Securities | 23  |
| Item 6. Selected Financial      Data                                                                                                | 26  |
| Item 7. Management’s Discussion and Analysis      of Financial Condition and Results of Operation                             | 27  |
| Introduction                                                                                                                             | 27  |
| Overview of Business                                                                                                                     | 27  |
| Overview of Significant 2008      Events                                                                                                 | 28  |
| Liquidity and Capital      Resources                                                                                                     | 28  |
| Contractual Obligations                                                                                                                  | 34  |
| Results of Operations                                                                                                                    | 34  |
| Off-Balance Sheet      Arrangements                                                                                                      | 36  |
| Summary of Critical Accounting      Policies                                                                                             | 36  |
| Recent Accounting    Standards                                                                                                           | 37  |
| Item 7A. Quantitative and Qualitative      Disclosures About Market Risk                                                            | 38  |
| Item 8. Financial Statements and      Supplementary Data                                                                            | 39  |
| Item 9. Changes In and Disagreements with      Accountants on Accounting and Financial    Disclosure                                | 62  |
| Item 9A. Controls and      Procedures                                                                                               | 62  |
| Item 9B. Other      Information                                                                                                     | 62  |
| PART      III                                                                                                                            | 63  |
| Item 10. Directors, Executive Officers of Our      General Partner and Corporate Governance                                         | 63  |
| Item 11. Executive      Compensation                                                                                                | 66  |
| Item 12. Security Ownership of Certain      Beneficial Owners and Management, and Related Unitholder      Matters                   | 68  |
| Item 13. Certain Relationships and Related      Transactions, and Director Independence                                             | 70  |
| Item 14. Principal Accountant Fees and      Services                                                                                | 71  |
| PART      IV                                                                                                                             | 72  |
| Item 15. Exhibits and Financial Statement      Schedules                                                                            | 72  |

----

|   | • | statements      regarding our ability to pay distributions to our    unitholders; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | our      expected receipt of cash distributions from Sabine Pass LNG,      L.P.; |
|--------|---------|----------------------------------------------------------------------------------|

|   | • | statements      regarding future levels of domestic natural gas production, supply or      consumption; future levels of LNG imports into North America; sales of      natural gas in North America; and the transportation, other infrastructure      or prices related to natural gas, LNG or other energy    sources; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | statements      regarding any financing transactions or arrangements, or ability to enter      into such transactions orarrangements; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | • | statements      regarding any terminal use agreement (“TUA”) or other agreements to be      entered into or performed substantially in the future, including any cash      distributions and revenues anticipated to be received and the anticipated      timing thereof, and statements regarding the amounts of total LNG      regasification or storage capacity that are, or may become, subject to      TUAs or other contracts; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | statements      regarding counterparties to our TUAs, construction contracts and other      contracts; |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | • | statements      regarding any business strategy, any business plans or any other plans,      forecasts, projections or objectives, any or all of which are subject to      change; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | statements      regarding legislative, governmental, regulatory, administrative or other      public body actions, requirements, permits, investigations, proceedings or      decisions; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | any      other statements that relate to non-historical or future      information. |
|--------|---------|-------------------------------------------------------------------------------------|

----

|    | • | Bcf means billion cubic      feet; |
|--------------|---------|------------------------------------|

|          | • | Bcf/d means billion      cubic feet per day; |
|--------------------|---------|----------------------------------------------|

|    | • | EPC means engineering,      procurement and construction; |
|--------------|---------|-----------------------------------------------------------|

|    | • | EPCM means engineering,      procurement, construction andmanagement; |
|--------------|---------|-----------------------------------------------------------------------|

|    | • | LNG means liquefied      natural gas; and |
|--------------|---------|-------------------------------------------|

|    | • | TUA means terminal use      agreement. |
|--------------|---------|----------------------------------------|

|   | • | successfully      managing the operation of the Sabine Pass LNG receiving terminal;      and |
|--------|---------|----------------------------------------------------------------------------------------------|

|   | • | expanding      our existing asset base through acquisitions from Cheniere or third      parties, or our own development, of complementary businesses or assets,      such as other LNG receiving terminals, natural gas storage assets and      pipelines. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Total      Gas and Power North America, Inc. (formerly known as Total LNG USA, Inc.)      (“Total”) has reserved approximately 1.0 Bcf/d of regasification capacity      and has agreed to make monthly capacity payments to Sabine Pass LNG      aggregating approximately $125 million per year for 20 years that      commenced on April 1, 2009.  Total, S.A. has guaranteed      Total’s obligations under its TUA up to $2.5 billion, subject to certain      exceptions; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Chevron      U.S.A., Inc. (“Chevron”) has reserved approximately 1.0 Bcf/d of      regasification capacity and has agreed to make monthly capacity payments      to Sabine Pass LNG aggregating approximately $125 million per year for 20      years that commenced on July 1, 2009.  Chevron Corporation      has guaranteed Chevron’s obligations under its TUA up to 80% of the fees      payable by Chevron. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | • | Risks      Relating to Our Financial Matters; |
|--------|---------|-----------------------------------------------|

|   | • | Risks      Relating to Our Business; |
|--------|---------|--------------------------------------|

|   | • | Risks      Relating to Our Cash Distributions; |
|--------|---------|------------------------------------------------|

|   | • | Risks      Relating to an Investment in Us and Our Common Units;  and |
|--------|---------|-----------------------------------------------------------------------|

|   | • | Risks      Relating to Tax Matters. |
|--------|---------|-------------------------------------|

|   | • | limiting      our ability to attract customers; |
|--------|---------|-------------------------------------------------|

|   | • | limiting      our ability to compete with other companies that are not as highly      leveraged; |
|--------|---------|--------------------------------------------------------------------------------------------------|

|   | • | limiting      our flexibility in and ability to plan for or react to changing market      conditions in our industry and to economic downturns, and making us more      vulnerable than our less leveraged competitors to an industry or economic      downturn; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | limiting      our ability to use operating cash flow in other areas of our business      because we must dedicate a substantial portion of these funds to service      debt, including indebtedness that we may incur in the    future; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | limiting      our ability to obtain additional financing to fund our capital      expenditures, working capital, acquisitions, debt service requirements or      liquidity needs for general business or other purposes;  and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | resulting      in a material adverse effect on our business, results of operations and      financial condition if we are unable to service or refinance our      indebtedness or obtain additional financing, as  needed. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Cheniere      Marketing does not have unconditional agreements or arrangements for any      supplies of LNG, or for the utilization of capacity that it has contracted      for under its TUA with us and may not be able to obtain such agreements or      arrangements on economical terms, or atall; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Cheniere      Marketing does not have unconditional commitments from customers for the      purchase of the natural gas it proposes to sell from the Sabine Pass LNG      receiving terminal, and it may not be able to obtain commitments or other      arrangements on economical terms, or at all;and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | even      if Cheniere Marketing is able to arrange for supplies and transportation      of LNG to the Sabine Pass LNG receiving terminal, and for transportation      and sales of natural gas to customers, it may experience negative cash      flows and adverse liquidity effects due to fluctuations in supply, demand      and price for LNG, for transportation of LNG, for natural gas and for      storage and transportation of naturalgas. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | incur      additional indebtedness; |
|--------|---------|-------------------------------------|

|   | • | create      liens on our assets; and |
|--------|---------|--------------------------------------|

|   | • | engage      in sale and leaseback transactions and mergers or acquisitions and to make      equity investments. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

----

|   | • | performing      below expected levels ofefficiency; |
|--------|---------|-----------------------------------------------------|

|   | • | breakdown      or failures of equipment orsystems; |
|--------|---------|----------------------------------------------------|

|   | • | operational      errors by vessel or tug operators orothers; |
|--------|---------|--------------------------------------------------------------|

|   | • | operational      errors by us or any contracted facility operator or  others; |
|--------|---------|-------------------------------------------------------------------------------|

|   | • | labor      disputes; and |
|--------|---------|--------------------------|

|   | • | weather-related      interruptions of operations. |
|--------|---------|---------------------------------------------------|

|   | • | Sabine      Pass LNG may be unable to enter into contracts for the purchase of the LNG      and may be unable to obtain vessels to deliver such LNG, on terms      reasonably acceptable to it or atall; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Sabine      Pass LNG may bear the commodity price risk associated with purchasing the      LNG, holding it in inventory for a period of time and selling the      regasified LNG; and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Sabine      Pass LNG may be unable to obtain financing for the purchase and shipment      of the LNG on terms that are reasonably acceptable to it or at      all. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

----

----

|   | • | additions      to competitive regasification capacity in North America, Europe, Asia and      other markets, which could divert LNG from the Sabine Pass LNG receiving      terminal; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | insufficient      LNG liquefaction capacityworldwide; |
|--------|---------|-------------------------------------------------------|

|   | • | insufficient      LNG tanker capacity; |
|--------|---------|----------------------------------------|

|   | • | reduced      demand and lower prices for naturalgas; |
|--------|---------|------------------------------------------------------|

|   | • | increased      natural gas production deliverable by pipelines, which could suppress      demand for LNG; |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | • | cost      improvements that allow competitors to offer LNG regasification services      at reduced prices; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

----

|   | • | changes      in supplies of, and prices for, alternative energy sources such as coal,      oil, nuclear, hydroelectric, wind and solar energy, which may reduce the      demand for natural gas; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes      in regulatory, tax or other governmental policies regarding imported LNG,      natural gas or alternative energy sources, which may reduce the demand for      imported LNG and/or natural gas; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | adverse      relative demand for LNG in North America compared to other markets, which      may decrease LNG imports into North America;and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | cyclical      trends in general business and economic conditions that cause changes in      the demand for natural gas. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | increased      construction costs; |
|--------|---------|------------------------------------|

|   | • | economic      downturns, increases in interest rates or other events that may affect the      availability of sufficient financing for LNG projects on commercially      reasonable terms; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | decreases      in the price of LNG and natural gas, which might decrease the expected      returns relating to investments in LNGprojects; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      inability of project owners or operators to obtain governmental approvals      to construct or operate LNGfacilities; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------|

|   | • | political      unrest in exporting countries or local community resistance in such      countries to the siting of LNG facilities due to safety, environmental or      security concerns; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | any      significant explosion, spill or similar incident involving an LNG      liquefaction facility or LNGcarrier. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------|

|   | • | an      inadequate number of shipyards constructing LNG vessels and a backlog of      orders at these shipyards; |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | • | political      or economic disturbances in the countries where the vessels are being      constructed; |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | • | changes      in governmental regulations or maritime self-regulatory      organizations; |
|--------|---------|------------------------------------------------------------------------------------------|

|   | • | work      stoppages or other labor disturbances at the  shipyards; |
|--------|---------|--------------------------------------------------------------------|

----

|   | • | bankruptcy      or other financial crisis ofshipbuilders; |
|--------|---------|-----------------------------------------------------------|

|   | • | quality      or engineering problems; |
|--------|---------|---------------------------------------|

|   | • | weather      interference or a catastrophic event, such as a major earthquake, tsunami      or fire; and |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | • | shortages      of or delays in the receipt of necessary construction      materials. |
|--------|---------|--------------------------------------------------------------------------------------|

|   | • | relatively      minor changes in the supply of, and demand for, natural gas in relevant      markets; |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | • | political      conditions in international natural gas producing  regions; |
|--------|---------|----------------------------------------------------------------------------|

|   | • | the      extent of domestic production and importation of natural gas in relevant      markets; |
|--------|---------|-------------------------------------------------------------------------------------------------|

|   | • | the      level of demand for LNG and natural gas in relevant markets, including the      effects of economic downturns orupturns; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | • | weather      conditions; |
|--------|---------|--------------------------|

|   | • | the      competitive position of natural gas as a source of energy compared with      other energy sources; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

|   | • | the      effect of government regulation on the production, transportation and sale      of natural gas. |
|--------|---------|----------------------------------------------------------------------------------------------------------|

----

|   | • | we      are unable to identify attractive acquisition candidates or negotiate      acceptable purchase contracts withthem; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | • | we      are unable to obtain necessary governmental  approvals; |
|--------|---------|-----------------------------------------------------------------|

|   | • | we      are unable to obtain financing for the acquisitions on economically      acceptable terms, or at all; |
|--------|---------|---------------------------------------------------------------------------------------------------------------|

|   | • | we      are unable to secure adequate customer commitments to use the acquired      facilities; or |
|--------|---------|----------------------------------------------------------------------------------------------------|

|   | • | we      are outbid by competitors. |
|--------|---------|------------------------------------|

|   | • | an      inability to integrate successfully the businesses that we acquire with      our existing business; |
|--------|---------|-------------------------------------------------------------------------------------------------------------|

|   | • | a      decrease in our liquidity by using a significant portion of our available      cash or borrowing capacity to finance the  acquisition; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      assumption of unknown liabilities; |
|--------|---------|---------------------------------------------|

|   | • | limitations      on rights to indemnity from theseller; |
|--------|---------|---------------------------------------------------------|

|   | • | mistaken      assumptions about the cash generated, or to be generated, by the business      acquired or the overall costs of equity ordebt; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      diversion of management’s and employees’ attention from other business      concerns; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------|

|   | • | unforeseen      difficulties encountered in operating new business segments or in new      geographic areas. |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

----

|   | • | an      operating account has been funded with amounts sufficient to cover the      succeeding 45 days of operating and maintenance expenses, maintenance      capital expenditures and obligations, if any, under an assumption      agreement and a state tax sharingagreement; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | one-sixth      of the amount of interest due on the Senior Notes on the next interest      payment date (plus any shortfall from any such month subsequent to the      preceding interest payment date) has been transferred to a debt payment      account; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | outstanding      principal on the Senior Notes then due and payable has been      paid; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | taxes      payable by Sabine Pass LNG or the guarantors of the Senior Notes and      permitted payments in respect of taxes have been paid;  and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      debt service reserve account has been replenished with the amount (or      acceptable letters of credit or acceptable guarantees in respect of such      amount) required to make the next interest payment on the Senior Notes,      which amount was approximately $82.4 million as of December 31,      2009. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a      default for 30 days in the payment of interest on, or additional interest,      if any, with respect to, the SeniorNotes; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|

|   | • | a      failure to pay any principal of, or premium, if any, on the Senior      Notes; |
|--------|---------|---------------------------------------------------------------------------------------|

|   | • | a      failure by Sabine Pass LNG to comply with various covenants in the Sabine      Pass Indenture; |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | • | a      failure to observe any other agreement in the Sabine Pass Indenture beyond      any specified cure periods; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------|

|   | • | a      default under any mortgage, indenture or instrument governing any      indebtedness for borrowed money by Sabine Pass LNG in excess of $25.0      million if such default results from a failure to pay principal or      interest on, or results in the acceleration of, such      indebtedness; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a      final money judgment or decree (not covered by insurance) in excess of      $25.0 million is not discharged or stayed within 60 days following      entry; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a      failure of any material representation or warranty in the security      documents entered into in connection with the indenture to be      correct; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      Sabine Pass LNG receiving terminal project is abandoned;  or |
|--------|---------|-----------------------------------------------------------------------|

|   | • | certain      events of bankruptcy or insolvency. |
|--------|---------|--------------------------------------------------|

----

|   | • | make      certain investments; |
|--------|---------|--------------------------------|

|   | • | purchase,      redeem or retire equity interests; |
|--------|---------|---------------------------------------------------|

|   | • | issue      preferred stock; |
|--------|---------|-----------------------------|

|   | • | sell      or transfer assets; |
|--------|---------|-------------------------------|

|   | • | incur      liens; |
|--------|---------|-------------------|

|   | • | enter      into transactions with affiliates; |
|--------|---------|-----------------------------------------------|

|   | • | consolidate,      merge, sell or lease all or substantially all of its assets;      and |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | enter      into sale and leasebacktransactions. |
|--------|---------|-------------------------------------------------|

|   | • | under      a services agreement, we pay an affiliate of Cheniere an administrative      fee of $10.0 million per year (as adjusted for inflation) for general and      administrative services for our benefit. This fee does not include      reimbursements by us of direct expenses that the affiliate incurs on our      behalf, such as salaries of operational personnel performing services      on-site at the Sabine Pass LNG receiving terminal and the cost of their      employee benefits, including 401(k) plan, pension and health insurance      benefits; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | under      an operation and maintenance agreement with an affiliate of Cheniere,      Sabine Pass LNG pays a fixed monthly fee of $130,000 (indexed for      inflation) and reimburses our general partner for its operating expenses,      which consist primarily of labor expenses. Cheniere’s affiliate, under      certain circumstances, will be entitled to a bonus equal to 50% of the      salary component of labor costs;  |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | under      a management services agreement with an affiliate of Cheniere, Sabine Pass      LNG pays a fixed monthly fee of $520,000 (indexed for inflation);      and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      estimate that our partnership will incur costs of approximately $2.5      million per year, adjusted for inflation at 2½% per year, for tax      compliance and publicly traded partnership tax reporting, accounting, SEC      reporting and other costs of operating as a publicly traded      partnership.. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | neither      our partnership agreement nor any other agreement requires Cheniere to      pursue a business strategy that favors us. Cheniere’s directors and      officers have a fiduciary duty to make these decisions in favor of the      owners of Cheniere, which may be contrary to our  interests: |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      general partner controls the interpretation and enforcement of contractual      obligations between us, on one hand, and Cheniere, on the other hand,      including provisions governing administrative services and      acquisitions; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      general partner is allowed to take into account the interests of parties      other than us, such as Cheniere and its affiliates, in resolving conflicts      of interest, which has the effect of limiting its fiduciary duty to us and      our unitholders; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      general partner has limited its liability and reduced its fiduciary duties      under the partnership agreement, while also restricting the remedies      available to our unitholders for actions that, without these limitations,      might constitute breaches of fiduciaryduty; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Cheniere      is not limited in its ability to compete with us. Please read “—Cheniere      is not restricted from competing with us and is free to develop, operate      and dispose of, and is currently developing, LNG receiving terminals,      pipelines and other assets without any obligation to offer us the      opportunity to develop or acquire thoseassets”; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      general partner determines the amount and timing of asset purchases and      sales, capital expenditures, borrowings, issuances of additional      partnership securities, and the establishment, increase or decrease in the      amounts of reserves, each of which can affect the amount of cash that is      distributed to our unitholders; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      general partner determines the amount and timing of any capital      expenditures and whether a capital expenditure is a maintenance capital      expenditure, which reduces operating surplus, or an expansion capital      expenditure, which does not reduce operating surplus. This determination      can affect the amount of cash that is distributed to our unitholders and      the ability of the subordinated units to convert to common      units; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | our      partnership agreement does not restrict our general partner from causing      us to pay it or its affiliates for any services rendered on terms that are      fair and reasonable to us or entering into additional contractual      arrangements with any of these entities on our  behalf; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      general partner intends to limit its liability regarding our contractual      and other obligations and, in some circumstances, is entitled to be      indemnified by us; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      general partner may exercise its limited right to call and purchase common      units if it and its affiliates own more than 80% of the common units;      and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      general partner decides whether to retain separate counsel, accountants or      others to perform services for us. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------|

|   | • | permits      our general partner to make a number of decisions in its individual      capacity, as opposed to in its capacity as our general partner. This      entitles our general partner to consider only the interests and factors      that it desires, and it has no duty or obligation to give any      consideration to any interest of, or factors affecting, us, our affiliates      or any limited partner. Examples include the exercise of its limited call      right, the exercise of its rights to transfer or vote the units it owns,      the exercise of its registration rights and its determination whether or      not to consent to any merger or consolidation of the partnership or      amendment to the partnershipagreement; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | provides      that our general partner will not have any liability to us or our      unitholders for decisions made in its capacity as general partner, as long      as it acted in good faith, meaning that it believed the decision was in      the best interests of ourpartnership; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | generally      provides that affiliated transactions and resolutions of conflicts of      interest not approved by the conflicts committee of the board of directors      of our general partner and not involving a vote of unitholders must be on      terms no less favorable to us than those generally being provided to or      available from unrelated third parties or be “fair and reasonable” to us      and that, in determining whether a transaction or resolution is “fair and      reasonable,” our general partner may consider the totality of the      relationships between the parties involved, including other transactions      that may be particularly favorable or advantageous to us;        |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | provides      that our general partner, its affiliates and their officers and directors      will not be liable for monetary damages to us or our limited partners for      any acts or omissions unless there has been a final and non-appealable      judgment entered by a court of competent jurisdiction determining that our      general partner or those other persons acted in bad faith or engaged in      fraud, willful misconduct or, in the case of a criminal matter, acted with      knowledge that such conduct was criminal;and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | provides      that in resolving conflicts of interest, it will be presumed that in      making its decision the conflicts committee or the general partner acted      in good faith, and in any proceeding brought by or on behalf of any      limited partner or us, the person bringing or prosecuting such proceeding      will have the burden of overcoming such  presumption. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | • | our      unitholders’ proportionate ownership interest in us will      decrease; |
|--------|---------|----------------------------------------------------------------------------------------|

|   | • | the      amount of cash available per unit to pay distributions may decrease;        |
|--------|---------|-------------------------------------------------------------------------------------------|

|   | • | because      a lower percentage of total outstanding units will be subordinated units,      the risk will increase that a shortfall in the payment of the initial      quarterly distribution will be borne by our common      unitholders; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      ratio of taxable income to distributions may  increase; |
|--------|---------|------------------------------------------------------------------|

|   | • | the      relative voting strength of each previously outstanding unit may be      diminished; and |
|--------|---------|---------------------------------------------------------------------------------------------------|

|   | • | the      market price of the common units maydecline. |
|--------|---------|-------------------------------------------------------|

----

|   | • | our      quarterly distributions; |
|--------|---------|-----------------------------------|

|   | • | our      quarterly or annual earnings or those of other companies in our      industry; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | actual      or potential non-performance by any customer under a  TUA; |
|--------|---------|------------------------------------------------------------------------|

|   | • | announcements      by us or our competitors of significant  contracts; |
|--------|---------|------------------------------------------------------------------------|

|   | • | changes      in accounting standards, policies, guidance, interpretations or      principles; |
|--------|---------|-----------------------------------------------------------------------------------------------|

|   | • | general      economic conditions; |
|--------|---------|-----------------------------------|

|   | • | the      failure of securities analysts to cover our common units or changes in      financial or other estimates byanalysts; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------|

|   | • | future      sales of our common units; and |
|--------|---------|--------------------------------------------|

|   | • | other      factors described in these “RiskFactors.” |
|--------|---------|------------------------------------------------------------------|

----

----

----

|                         |   | High   |   |   | Low    |   |   | Cash      DistributionsPer      Unit (1) |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|------------------------------------------|--------|
| Three      Months Ended      |   |   |   |   |   |   |   |                                     |   |
| March 31,      2008     |   | $      | 17.39  |   |   | $      | 14.85  |                                     |   | $ | 0.425 |   |
| June 30,      2008      |   |   | 16.14  |   |   |   | 8.69   |                                     |   |   | 0.425 |   |
| September 30,      2008 |   |   | 10.21  |   |   |   | 6.95   |                                     |   |   | 0.425 |   |
| December 31,      2008  |   |   | 6.98   |   |   |   | 3.71   |                                     |   |   | 0.425 |   |
|                         |   |   |   |   |   |   |   |                                     |   |   |   |   |
| Three      Months Ended      |   |   |   |   |   |   |   |                                     |   |   |   |   |
| March 31,      2009     |   |   | 7.10   |   |   |   | 4.32   |                                     |   |   | 0.425 |   |
| June 30,      2009      |   |   | 7.99   |   |   |   | 6.03   |                                     |   |   | 0.425 |   |
| September 30,      2009 |   |   | 9.95   |   |   |   | 6.95   |                                     |   |   | 0.425 |   |
| December 31,      2009  |   |   | 13.30  |   |   |   | 9.27   |                                     |   |   | 0.425 |   |

----

| (1) | We      also paid cash distributions to subordinated unitholders and to our      general partner with respect to its 2% general partner      interest. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | distributions      of available cash from operating surplus on each of the outstanding common      units, subordinated units and general partner units equaled or exceeded      the initial quarterly distribution for each of the three consecutive,      non-overlapping four-quarter periods immediately preceding that      date; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      adjusted operating surplus generated during each of the three consecutive,      non-overlapping four-quarter periods immediately preceding that date      equaled or exceeded the sum of the initial quarterly distributions on all      of the outstanding common units, subordinated units and general partner      units during those periods on a fully diluted basis;  and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | there      are no arrearages in payment of the initial quarterly distribution on the      common units. |
|--------|---------|---------------------------------------------------------------------------------------------------------|

|   | • | the      subordination period will end and each subordinated unit will immediately      convert into one common unit; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------|

|   | • | any      existing arrearages in payment of the initial quarterly distribution on      the common units will be extinguished;and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      general partner will have the right to convert its general partner units      and its incentive distribution rights into common units or to receive cash      in exchange for those interests. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | distributions      of available cash from operating surplus on each outstanding common unit,      subordinated unit and general partner unit equaled or exceeded $2.55 (150%      of the annualized initial quarterly distribution) for the four-quarter      period immediately preceding thatdate; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      adjusted operating surplus generated during the four-quarter period      immediately preceding that date equaled or exceeded the sum of a      distribution of $2.55 (150% of the annualized initial quarterly      distribution) on all of the outstanding common units, subordinated units      and general partner units on a fully diluted basis;  and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | there      are no arrearages in payment of the initial quarterly distribution on the      common units. |
|--------|---------|---------------------------------------------------------------------------------------------------------|

----

|                                | Total      Quarterly DistributionTarget      Amount |                                     | Marginal      PercentageInterest      Distributions |
|-------------------------------------|-----------------------------------------------------|------------------------------------------|-----------------------------------------------------|
|                                |                                                | Common      and Subordinated Unitholders |                                                | General      Partner |
| Initial      quarterly distribution | $0.425                                              |                                     | 98%                                                 |   | 2% |
| First      Target Distribution      | Above      $0.425 up to $0.489                      |                                     | 98%                                                 |   | 2% |
| Second      Target Distribution     | Above      $0.489 up to $0.531                      |                                     | 85%                                                 |   | 15% |
| Third      Target Distribution      | Above      $0.531 up to $0.638                      |                                     | 75%                                                 |   | 25% |
| Thereafter                          | Above      $0.638                                   |                                     | 50%                                                 |   | 50% |

----

|                                                       | Cheniere      Energy Partners, L.P. |          | Combined      Predecessor Entities |   |
|------------------------------------------------------------|-------------------------------------|---------------|------------------------------------|--------|
|                                                       | December      31,                   |          |
|                                                       | 2009                                |          | 2008                               |   | 2007 |   | 2006 |   | 2005 |   |
|                                                       | (in      thousands)                 |
| Statement of Operations      Data:                         |                                |          |                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      (including transactions with affiliates)     | $                                   | 416,790       |                               | $      | 15,000 |   | $ | —   |   | $ | —   |   | $ | —   |   |
| Expenses      (including transactions with affiliates)     |                                | 88,870        |                               |   | 32,141 |   |   | 12,516 |   |   | 10,277 |   |   | 4,719 |   |
| Income      (loss) from operations                         |                                | 327,920       |                               |   | (17,141 | ) |   | (12,516 | ) |   | (10,277 | ) |   | (4,719 | ) |
| Other      income (expense) (1)                            |                                | (141,008      | )                                  |   | (61,203 | ) |   | (36,436 | ) |   | (50,495 | ) |   | 456 |   |
| Net      income (loss)                                     |                                | 186,912       |                               |   | (78,344 | ) |   | (48,952 | ) |   | (60,772 | ) |   | (4,263 | ) |
|                                                       |                                |          |                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Flow Data:                                       |                                |          |                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows provided by (used in) operating activities |                                | 234,311       |                               |   | (1,156 | ) |   | (640 | ) |   | (27,912 | ) |   | 6,319 |   |
| Cash      flows provided by (used in) investing activities |                                | 92,146        |                               |   | (560 | ) |   | (74,776 | ) |   | (1,544,408 | ) |   | (246,337 | ) |
| Cash      flows provided by (used in) financing activities |                                | (208,922      | )                                  |   | 1,710 |   |   | 75,422 |   |   | 1,572,222 |   |   | 218,201 |   |
|                                                       |
|                                                       | Cheniere      Energy Partners, L.P. |          | Combined      Predecessor Entities |   |
|                                                       | December      31,                   |          |
|                                                       | 2009                                |          | 2008                               |   | 2007 |   | 2006 |   | 2005 |   |
|                                                       | (in      thousands)                 |
| Balance      Sheet Data:                                   |                                |          |                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                             | $                                   | 117,542  |                               | $      | 7 |   | $ | 13 |   | $ | 7 |   | $ | 5 |   |
| Restricted      cash and cash equivalents (current)        |                                | 13,732        |                               |   | 235,985 |   |   | 191,179 |   |   | 176,324 |   |   | 8,871 |   |
| Non-current      restricted cash and cash equivalents      |                                | 82,394        |                               |   | 137,984 |   |   | 453,843 |   |   | 982,613 |   |   | —   |   |
| Non-current      restricted U.S. Treasury securities       |                                | —       |                               |   | 20,829 |   |   | 63,923 |   |   | —   |   |   | —   |   |
| Property,      plant and equipment, net                    |                                | 1,588,557     |                               |   | 1,517,507 |   |   | 1,127,289 |   |   | 651,676 |   |   | 270,740 |   |
| Total      assets                                          |                                | 1,859,473     |                               |   | 1,978,835 |   |   | 1,904,978 |   |   | 1,858,114 |   |   | 309,139 |   |
| Long-term      debt                                        |                                | 2,110,101     |                               |   | 2,107,673 |   |   | 2,032,000 |   |   | 2,032,000 |   |   | 72,485 |   |
| Long-term      debt—related party                    |                                | 72,928        |                               |   | 70,661 |   |   | —   |   |   | —   |   |   | —   |   |
| Long-term      debt—affiliate                        |                                | —       |                               |   | 2,372 |   |   | 645 |   |   | —   |   |   | —   |   |
| Deferred      revenue (long-term)                          |                                | 33,500        |                               |   | 37,500 |   |   | 40,000 |   |   | 40,000 |   |   | 40,000 |   |
| Deferred      revenue—affiliate (long-term)          |                                | 7,360         |                               |   | 4,971 |   |   | 2,583 |   |   | —   |   |   | —   |   |

----

| (1) | The      year ended December 31, 2006 includes a $23.8 million loss related to      the extinguishment of debt issuance costs and a $20.6 million derivative      loss as a result of terminating interest rate swaps, both related to the      termination of the Sabine Pass credit facility in November      2006. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Overview      of Business |
|--------|---------|---------------------------|

|   | • | Overview      of Significant 2009 Events |
|--------|---------|------------------------------------------|

|   | • | Liquidity      and Capital Resources |
|--------|---------|--------------------------------------|

|   | • | Contractual      Obligations |
|--------|---------|------------------------------|

|   | • | Results      of Operations |
|--------|---------|----------------------------|

|   | • | Off-Balance      Sheet Arrangements |
|--------|---------|-------------------------------------|

|   | • | Summary      of Critical Accounting Policies |
|--------|---------|----------------------------------------------|

|   | • | Recent      Accounting Standards |
|--------|---------|----------------------------------|

----

|   | • | receipt      of capacity reservation fee payments from Cheniere Marketing, Total and      Chevron and successful unloading and processing of LNG for each      customer; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | purchase,      transportation and successful unloading of an additional LNG commissioning      cargo for the Sabine Pass LNG receiving  terminal; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | commencement      of distributions to our subordinated unitholder;  and |
|--------|---------|-------------------------------------------------------------------------|

|   | • | completed      construction and achieved full operability of the Sabine Pass LNG      receiving terminal with approximately 4.0 Bcf/d of total sendout capacity      and five LNG storage tanks with approximately 16.9 Bcf of aggregate      storage capacity. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Total      has reserved approximately 1.0 Bcf/d of regasification capacity and has      agreed to make monthly capacity payments to Sabine Pass LNG aggregating      approximately $125 million per year for 20 years that commenced on      April 1, 2009. Total, S.A. has guaranteed Total’s obligations under      its TUA up to $2.5 billion, subject to certain exceptions;    and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Chevron      has reserved approximately 1.0 Bcf/d of regasification capacity and has      agreed to make monthly capacity payments to Sabine Pass LNG aggregating      approximately $125 million per year for 20 years that commenced on      July 1, 2009. Chevron Corporation has guaranteed Chevron’s      obligations under its TUA up to 80% of the fees payable by      Chevron. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                           | Year      Ended December 31, |     |
|------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|----------|
|                                                                                                                                           | 2009                         |     | 2008 |   | 2007 |   |
| SOURCES      OF CASH AND CASH EQUIVALENTS                                                                                                      |                         |     |   |   |   |   |   |   |   |
| Use      of restricted cash and cash equivalents                                                                                               | $                            | 298,673  |   | $ | 426,592 |   | $ | 460,762 |   |
| Operating      cash flow                                                                                                                       |                         | 234,311  |   |   | —   |   |   | — |   |
| Proceeds      from issuance of debt                                                                                                            |                         | —  |   |   | 144,965    |   |   | — |   |
| Borrowings      under long-term note—affiliate                                                                                           |                         | 114      |   |   | 1,708 |   |   | 645 |   |
| Proceeds      from issuance of common units                                                                                                    |                         | —  |   |   | — |   |   | 98,442 |   |
| Affiliate      payable                                                                                                                         |                         | —  |   |   | 1 |   |   | 3 |   |
| Total      sources of cash and cash equivalents                                                                                                |                         | 533,098  |   |   | 573,266 |   |   | 559,852 |   |
| USES      OF CASH AND CASH EQUIVALENTS                                                                                                         |                         |     |   |   |   |   |   |   |   |
| LNG      receiving terminal construction-in-process                                                                                            |                         | (96,918  | ) |   | (402,955 | ) |   | (430,405 | ) |
| Distributions      to owners                                                                                                                   |                         | (280,675 | ) |   | (45,824 | ) |   | (23,668 | ) |
| Advances      under long-term contracts                                                                                                        |                         | (601     | ) |   | (14,274 | ) |   | (39,155 | ) |
| Repayment      of long-term note—affiliate                                                                                               |                         | (2,467   | ) |   | — |   |   | — |   |
| Advances      to affiliate—LNG held for commissioning, net of amounts transferred to LNG      receiving terminal construction-in-process |                         | —  |   |   | (9,923 | ) |   | — |   |
| Debt      issuance costs                                                                                                                       |                         | (23      | ) |   | (4,837 | ) |   | (725 | ) |
| Operating      cash flow                                                                                                                       |                         | —  |   |   | (1,156 | ) |   | (640 | ) |
| Special      rights adjustment                                                                                                                 |                         | (34,879  | ) |   | — |   |   | — |   |
| Investments      in restricted cash and cash equivalents                                                                                       |                         | —  |   |   | (94,303 | ) |   | — |   |
| Investment      in restricted U.S. Treasury securities                                                                                         |                         | —  |   |   | — |   |   | (63,923 | ) |
| Other                                                                                                                                          |                         | —  |   |   | — |   |   | (1,330 | ) |
| Total      uses of cash and cash equivalents                                                                                                   |                         | (415,563 | ) |   | (573,272 | ) |   | (559,846 | ) |
| NET      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                      |                         | 117,535  |   |   | (6 | ) |   | 6 |   |
| CASH      AND CASH EQUIVALENTS—beginning of year                                                                                         |                         | 7        |   |   | 13 |   |   | 7 |   |
| CASH      AND CASH EQUIVALENTS—end of year                                                                                               | $                            | 117,542  |   | $ | 7 |   | $ | 13 |   |

----

----

|                   |   |                                               |   |                       |        | Total      Distribution (in thousands) |
|------------------------|--------|----------------------------------------------------|--------|----------------------------|-------------|----------------------------------------|
| Date      Paid         |   | Period      Covered by Distribution                |   | Distribution      Per Unit |        | Common      and General Partner Units  |   | Subordinated      Units |
| February      13, 2009 |   | October      1 – December 31, 2008      |   | $                          | 0.425  |                                   | $ | 12,630  |   | $ | 57,538  |
| May      15, 2009      |   | January      1 – March 31, 2009         |   |                       | 0.425  |                                   | $ | 12,630  |   | $ | 57,538  |
| August      14, 2009   |   | April      1 – June 30, 2009            |   |                       | 0.425  |                                   | $ | 12,630  |   | $ | 57,538  |
| November      13, 2009 |   | July      1, 2009 – September 30, 2009  |   |                       | 0.425  |                                   | $ | 12,630  |   | $ | 57,538  |

----

----

|                                           | Payments      Due for Years Ended December 31, |                        |
|------------------------------------------------|------------------------------------------------|-----------------------------|
|                                           | Total                                          |                        | 2010 |   | 2011-2012 |   | 2013-2014 |   | Thereafter |   |
| Operating      lease obligations (1) (2)       | $                                              | 274,533           |   | $ | 8,905    |   | $ | 17,810    |   | $ | 17,810    |   | $ | 230,008    |   |
| Long-term      debt (excluding interest) (3)   |                                           | 2,215,500    |          |   | — |   |   | — |   |   | 550,000    |   |   | 1,665,500    |    |
| Service      contracts—                  |                                           |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Affiliate      O&M agreement (4)           |                                           | 23,660       |   |   | 1,560    |   |   | 3,120    |   |   | 3,120    |   |   | 15,860    |          |
| Affiliate      Sabine Pass LNG MSA (4)         |                                           | 94,640       |   |   | 6,240    |   |   | 12,480    |   |   | 12,480    |   |   | 63,440    |   |
| Affiliate      services agreement (4)          |                                           | 192,500      |   |   | 10,000    |    |   | 20,000    |   |   | 20,000    |   |   | 142,500    |   |
| Construction      and purchase obligations (4) |                                           | 7,408        |          |   | 7,408    |   |   | — |   |   | — |   |   | — |   |
| Cooperative      endeavor agreements (4)       |                                           | 17,171       |    |   | 2,453    |     |   | 4,906    |    |   | 4,906    |   |   | 4,906    |   |
| Other      Obligation (5)                      |                                           | 3,01         |   |   | 979    |   |   | 2,039    |   |   | — |   |   | — |   |
| Total                                          | $                                              | 2,828,430    |   | $ | 37,545    |    | $ | 60,355    |   | $ | 608,316    |   | $ | 2,122,214    |   |

----

| (1) | A      discussion of these obligations can be found in Note 14—“Leases” of our      Consolidated Combined Financial Statements.  |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Minimum      lease payments have not been reduced by a minimum sublease rental of      $129.6 million due in the future under noncancelable tug boat      subleases.  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Based      on the total debt balance, scheduled maturities and interest rates in      effect at December 31, 2009, our cash payments for interest would be      $164.8 million in 2010, $164.8 million in 2011, $164.8 million in 2012,      $161.5 million in 2013, $124.9 million in 2014 and $239.3 million for the      remaining years for a total of $1,020.1 million.  See Note      11—“Long-Term Debt (including related party”) of our Consolidated Combined      Financial Statements.  |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | A      discussion of these obligations can be found in Note 13—“Related Party      Transactions” to our Consolidated Combined Financial      Statements.  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Other      obligation consists of LNG receiving terminal security      services. |
|-----|----------------------------------------------------------------------------------|

----

----

----

----

----

| Management’s Report to the Unitholders of Cheniere      Energy Partners, L.P.                                   | 40  |
|-----------------------------------------------------------------------------------------------------------------------|----------|
| Reports of Independent Registered Public      Accounting Firm—Ernst & Young LLP                        | 41  |
| Consolidated Balance    Sheets                                                                                        | 43  |
| Consolidated Combined Statements of      Operations                                                                   | 44  |
| Consolidated Combined Statements of Partners’ and      Owners’ Capital (Deficit)                          | 45  |
| Consolidated Combined Statements of Cash      Flows                                                                   | 46  |
| Notes to      Consolidated Combined Financial Statements                                                              | 47  |
| Supplemental Information to Consolidated Combined      Financial Statements—Summarized Quarterly Financial Data | 62  |

----

|  Cheniere      Energy Partners, L.P. |
|-------------------------------------------|
|                                      |   |
| By:                                       | Cheniere      Energy Partners GP, LLC, |
|                                      | Its      general partner |

|   |                                                                                    |   |   |                                                                          |
|--------|-----------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------|
| By:    | /s/    CHARIF SOUKI         |   | By:    | /s/      Meg A. Gentle                                                   |
|   | Charif      Souki                                                                       |   |   | Meg      A. Gentle                                                            |
|   | Chief      Executive Officer(Principal      Executive Officer)                          |   |   | Chief      Financial Officer(Principal      Financial and Accounting Officer) |

----

|   | The      Board of Directors of Cheniere Energy Partners GP, LLC,  and |
|--------|-----------------------------------------------------------------------|

|   | Unitholders      of Cheniere Energy Partners, L.P. |
|--------|----------------------------------------------------|

|                                                  |
|-------------------------------------------------------|
|                                                  |
| /s/    ERNST      & YOUNG LLP |
| ERNST &      YOUNG LLP                       |
|                                                  |
|                                                  |
|                                                  |

----

|                                                  |
|-------------------------------------------------------|
|                                                  |
| /s/    ERNST      & YOUNG LLP |
| ERNST &      YOUNG LLP                       |
|                                                  |
|                                                  |
|                                                  |

----

|                                                                                                                       |   | December      31, |                |
|----------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------------------|
|                                                                                                                       |   | 2009              |                |   | 2008 |   |
| ASSETS                                                                                                                     |   |              |                |   |   |   |
| CURRENT      ASSETS                                                                                                        |   |              |                |   |   |   |
| Cash      and cash equivalents                                                                                             |   | $                 | 117,542             |   |   | $ | 7 |   |
| Restricted      cash and cash equivalents                                                                                  |   |              | 13,732              |   |   |   | 235,985 |   |
| Accounts      and interest receivable                                                                                      |   |              | 5,037               |   |   |   | 2,087 |   |
| Accounts      receivable—affiliate                                                                                   |   |              | 3,586               |   |   |   | 419 |   |
| Advances      to affiliate                                                                                                 |   |              | 5,358               |   |   |   | 2,198 |   |
| Advances      to affiliate—LNG inventory                                                                             |   |              | 1,319               |   |   |   | —   |   |
| LNG      inventory                                                                                                         |   |              | 1,521               |   |   |   | —   |   |
| Prepaid      expenses and other                                                                                            |   |              | 4,836               |   |   |   | 5,407 |   |
| Total      current assets                                                                                                  |   |              | 152,931             |   |   |   | 246,103 |   |
|                                                                                                                       |   |              |                |   |   |   |   |   |
| NON-CURRENT      RESTRICTED CASH AND CASH EQUIVALENTS                                                                      |   |              | 82,394              |   |   |   | 137,984 |   |
| NON-CURRENT      RESTRICTED U.S. TREASURY SECURITIES                                                                       |   |              | —   |   |   |   | 20,829 |   |
| PROPERTY,      PLANT AND EQUIPMENT, NET                                                                                    |   |              | 1,588,557           |   |   |   | 1,517,507 |   |
| DEBT      ISSUANCE COSTS, NET                                                                                              |   |              | 26,953              |   |   |   | 30,748 |   |
| ADVANCES      UNDER LONG-TERM CONTRACTS                                                                                    |   |              | 1,021               |   |   |   | 10,705 |   |
| ADVANCES      TO AFFILIATE—LNG HELD FOR COMMISSIONING                                                                |   |              | —   |   |   |   | 9,923 |   |
| OTHER                                                                                                                      |   |              | 7,617               |   |   |   | 5,036 |   |
| Total      assets                                                                                                          |   | $                 | 1,859,473           |   |   | $ | 1,978,835 |   |
|                                                                                                                       |   |              |                |   |   |   |   |   |
| LIABILITIES      AND PARTNERS’ DEFICIT                                                                               |   |              |                |   |   |   |   |   |
| CURRENT      LIABILITIES                                                                                                   |   |              |                |   |   |   |   |   |
| Accounts      payable                                                                                                      |   | $                 | 39                  |   |   | $ | 137 |   |
| Accounts      payable—affiliate                                                                                      |   |              | 306                 |   |   |   | 514 |   |
| Accrued      liabilities                                                                                                   |   |              | 22,181              |   |   |   | 40,926 |   |
| Accrued      liabilities—affiliate                                                                                   |   |              | 3,095               |   |   |   | 184 |   |
| Deferred      revenue                                                                                                      |   |              | 26,456              |   |   |   | 2,500 |   |
| Deferred      revenue—affiliate                                                                                      |   |              | 63,507              |   |   |   | 62,742 |   |
| Total      current liabilities                                                                                             |   |              | 115,584             |   |   |   | 107,003 |   |
|                                                                                                                       |   |              |                |   |   |   |   |   |
| LONG-TERM      DEBT, NET OF DISCOUNT                                                                                       |   |              | 2,110,101           |   |   |   | 2,107,673 |   |
| LONG-TERM      DEBT—RELATED PARTY, NET OF DISCOUNT                                                                   |   |              | 72,928              |   |   |   | 70,661 |   |
| LONG-TERM      DEBT—AFFILIATE                                                                                        |   |              | —   |   |   |   | 2,372 |   |
| DEFERRED      REVENUE                                                                                                      |   |              | 33,500              |   |   |   | 37,500 |   |
| DEFERRED      REVENUE—AFFILIATE                                                                                      |   |              | 7,360               |   |   |   | 4,971 |   |
| OTHER      NON-CURRENT LIABILITIES                                                                                         |   |              | 327                 |   |   |   | 340 |   |
|                                                                                                                       |   |              |                |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                                         |   |              | —   |   |   |   | —   |   |
|                                                                                                                       |   |              |                |   |   |   |   |   |
| PARTNERS’      DEFICIT                                                                                               |   |              |                |   |   |   |   |   |
| Common      unitholders (26,416,357 units issued and outstanding at December 31, 2009      and 2008)                       |   |              | (41,494             | ) |   |   | (23,520 | ) |
| Subordinated      unitholders (135,383,831 units issued and outstanding at December 31, 2009      and 2008)                |   |              | (427,026            | ) |   |   | (318,994 | ) |
| General      partner interest (2% interest with 3,302,045 units issued and outstanding      at December 31, 2009 and 2008) |   |              | (11,807             | ) |   |   | (9,171 | ) |
| Total      partners’ deficit                                                                                         |   |              | (480,327            | ) |   |   | (351,685 | ) |
| Total      liabilities and partners’ deficit                                                                         |   | $                 | 1,859,473           |   |   | $ | 1,978,835 |   |

----

|                                                                                                                                      |   | Year      Ended December 31, |                |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------------------|
|                                                                                                                                      |   | 2009                         |                |   | 2008 |   |   | 2007 |   |
| REVENUES                                                                                                                                  |   |                         |                |   |   |   |   |   |   |
| Revenues                                                                                                                                  |   | $                            | 163,862             |   |   | $ | —   |   |   | $ | —        |    |
| Revenues—affiliate                                                                                                                  |   |                         | 252,928             |   |   |   | 15,000 |   |   |   | —   |   |
| TOTAL      REVENUE                                                                                                                        |   |                         | 416,790             |   |   |   | 15,000 |   |   |   | —   |   |
|                                                                                                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                                                                                  |   |                         |                |   |   |   |   |   |   |   |   |   |
| Operating      and maintenance expense                                                                                                    |   |                         | 20,683              |   |   |   | 6,345 |   |   |   | —   |   |
| Operating      and maintenance expense—affiliate                                                                                    |   |                         | 11,833              |   |   |   | 5,125 |   |   |   | —   |   |
| Depreciation      expense                                                                                                                 |   |                         | 32,742              |   |   |   | 7,994 |   |   |   | 35 |   |
| Development      expense                                                                                                                  |   |                         | —   |   |   |   | 1,184 |   |   |   | 1,542 |   |
| Development      expense—affiliate                                                                                                  |   |                         | —   |   |   |   | 1,158 |   |   |   | 3,943 |   |
| General      and administrative expense                                                                                                   |   |                         | 3,722               |   |   |   | 4,843 |   |   |   | 2,716 |   |
| General      and administrative expense—affiliate                                                                                   |   |                         | 19,890              |   |   |   | 5,492 |   |   |   | 4,280 |   |
| TOTAL      EXPENSES                                                                                                                       |   |                         | 88,870              |   |   |   | 32,141 |   |   |   | 12,516 |   |
| INCOME      (LOSS) FROM OPERATIONS                                                                                                        |   |                         | 327,920             |   |   |   | (17,141 | ) |   |   | (12,516 | ) |
|                                                                                                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE)                                                                                                               |   |                         |                |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                                                      |   |                         | 930                 |   |   |   | 13,778 |   |   |   | 52,225 |   |
| Interest      expense, net                                                                                                                |   |                         | (147,201            | ) |   |   | (79,887 | ) |   |   | (88,661 | ) |
| Interest      expense—affiliate                                                                                                     |   |                         | (13                 | ) |   |   | —   |   |   |   | —   |   |
| Derivative      gain, net                                                                                                                 |   |                         | 5,277               |   |   |   | 4,653 |   |   |   | —   |   |
| Other                                                                                                                                     |   |                         | (1                  | ) |   |   | 253 |   |   |   | —   |   |
| TOTAL      OTHER EXPENSE                                                                                                                  |   |                         | (141,008            | ) |   |   | (61,203 | ) |   |   | (36,436 | ) |
| NET      INCOME (LOSS)                                                                                                                    |   | $                            | 186,912             |   |   | $ | (78,344 | ) |   | $ | (48,952 | ) |
|                                                                                                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| Less:                                                                                                                                     |   |                         |                |   |   |   |   |   |   |   |   |   |
| Net      loss through March 25, 2007                                                                                                 |   |                         |                |   |   |   |   |   |   |   | (12,128 | ) |
|                                                                                                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| Net      loss for partners from March 26, 2007 through December 31,      2007                                                        |   |                         |                |   |   |   |   |   |   | $ | (36,824 | ) |
|                                                                                                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| Allocation      of net income (loss):                                                                                                     |   |                         |                |   |   |   |   |   |   |   |   |   |
| Limited      partners’ interest                                                                                                     |   |                         | 183,174             |   |   |   | (76,777 | ) |   |   | (36,088 | ) |
| General      partner’s interest                                                                                                     |   |                         | 3,738               |   |   |   | (1,567 | ) |   |   | (736 | ) |
| Net      income (loss) for partners                                                                                                       |   | $                            | 186,912             |   |   | $ | (78,344 | ) |   | $ | (36,824 | ) |
|                                                                                                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| Basic      and diluted net income (loss) per limited partner unit                                                                         |   | $                            | 1.13                |   |   | $ | (0.48 | ) |   | $ | (0.23 | ) |
| Weighted      average number of limited partner units outstanding used for basic and      diluted net income (loss) per unit calculation: |   |                         |                |   |   |   |   |   |   |   |   |   |
| Common      units                                                                                                                         |   |                         | 26,416              |   |   |   | 26,416 |   |   |   | 26,416 |   |
| Subordinated      units                                                                                                                   |   |                         | 135,384             |   |   |   | 135,384 |   |   |   | 135,384 |   |

----

|                                                                     |   | Partners’/Owners’      Deficit |                |   | CommonUnits |   |                | Subordinated      Units |   |   | GeneralPartnerUnits |   |   | Total  |                |
|--------------------------------------------------------------------------|--------|--------------------------------------------|---------------------|--------|-------------|--------|---------------------|-------------------------|--------|--------|---------------------|--------|--------|--------|---------------------|
|                                                                     |   |                                       |                |   |        |   |                |                    |   |   |                |   |   |   |                |
| Balance      at December 31, 2006                                   |   | $                                          | (253,338            | )      |        | $      | —   |                    |   | $      | —   |   |   | $      | —   |   |   | $ | (253,338 | ) |
| Net      loss through March 25, 2007                                |   |                                       | (12,128             | )      |        |   | —   |                    |   |   | —   |   |   |   | —   |   |   |   | (12,128 | ) |
| Balance      at March 25, 2007                                      |   |                                       | (265,466            | )      |        |   | —   |                    |   |   | —   |   |   |   | —   |   |   |   | (265,466 | ) |
|                                                                     |   |                                       |                |   |        |   |                |                    |   |   |                |   |   |   |                |   |   |   |   |   |
| Contribution      of net deficit investment to unitholders               |   |                                       | 265,466             |   |        |   | (35,434             | )                       |   |   | (224,556            | )      |   |   | (5,476              | ) |   |   | —   |   |
| Proceeds      from initial public offering, net of issuance costs        |   |                                       | —   |   |        |   | 98,442              |                    |   |   | —   |   |   |   | —   |   |   |   | 98,442 |   |
| Net      loss from March 26, 2007 through December 31,    2007 |   |                                       | —   |   |        |   | (5,892              | )                       |   |   | (30,196             | )      |   |   | (736                | ) |   |   | (36,824 | ) |
| Distributions                                                            |   |                                       | —   |   |        |   | (23,193             | )                       |   |   | —             |   |   |   | (476                | ) |   |   | (23,669 | ) |
| Balance      at December 31, 2007                                   |   |                                       | —   |   |        |   | 33,923              |                    |   |   | (254,752            | )      |   |   | (6,688              | ) |   |   | (227,517 | ) |
|                                                                     |   |                                       |                |   |        |   |                |                    |   |   |                |   |   |   |                |   |   |   |   |   |
| Net      loss                                                            |   |                                       | —   |   |        |   | (12,535             | )                       |   |   | (64,242             | )      |   |   | (1,567              | ) |   |   | (78,344 | ) |
| Distributions                                                            |   |                                       | —   |   |        |   | (44,908             | )                       |   |   | —   |   |   |   | (916                | ) |   |   | (45,824 | ) |
| Balance      at December 31, 2008                                   |   |                                       | —   |   |        |   | (23,520             | )                       |   |   | (318,994            | )      |   |   | (9,171              | ) |   |   | (351,685 | ) |
|                                                                     |   |                                       |                |   |        |   |                |                    |   |   |                |   |   |   |                |   |   |   |   |   |
| Net      income                                                          |   |                                       | —   |   |        |   | 29,907              |                    |   |   | 153,268             |   |   |   | 3,737               |   |   |   | 186,912 |   |
| Distributions                                                            |   |                                       | —   |   |        |   | (44,909             | )                       |   |   | (230,153            | )      |   |   | (5,613              | ) |   |   | (280,675 | ) |
| Special      rights adjustment                                           |   |                                       | —   |   |        |   | (2,972              | )                       |   |   | (31,147             | )      |   |   | (760                | ) |   |   | (34,879 | ) |
| Balance      at December 31, 2009                                        |   | $                                          | —   |   |        | $      | (41,494             | )                       |   | $      | (427,026            | )      |   | $      | (11,807             | ) |   | $ | (480,327 | ) |

----

|                                                                                                                                           |   | Year      Ended December 31, |                |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------------------|
|                                                                                                                                           |   | 2009                         |                |   | 2008 |   |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                                                                                      |   |                         |                |   |   |   |   |   |   |
| Net      income (loss)                                                                                                                         |   | $                            | 186,912             |   |   | $ | (78,344 | ) |   | $ | (48,952 | ) |
| Adjustments      to reconcile net income (loss) to net cash used in operating      activities:                                                 |   |                         |                |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                                                                                   |   |                         | 32,742              |   |   |   | 7,994 |   |   |   | 35 |   |
| Amortization      of debt discount                                                                                                             |   |                         | 4,695               |   |   |   | 1,369 |   |   |   | — |   |
| Amortization      of debt issuance costs                                                                                                       |   |                         | 3,818               |   |   |   | 3,984 |   |   |   | 3,793 |   |
| Non-cash      derivative (gain) loss                                                                                                           |   |                         | 1,106               |   |   |   | (1,230 | ) |   |   | — |   |
| Interest      income on restricted cash and cash equivalents                                                                                   |   |                         | —   |   |   |   | (16,210 | ) |   |   | (49,638 | ) |
| Use      of (investment in) restricted cash and cash equivalents                                                                               |   |                         | —   |   |   |   | (1,932 | ) |   |   | 103,043 |   |
| Changes      in operating assets and liabilities:                                                                                              |   |                         |                |   |   |   |   |   |   |   |   |   |
| Accounts      and interest receivable                                                                                                          |   |                         | 1,526               |   |   |   | 3,498 |   |   |   | —   |   |
| Accounts      receivable—affiliate                                                                                                       |   |                         | (3,167              | ) |   |   | (419 | ) |   |   | —   |   |
| Accounts      payable and accrued liabilities                                                                                                  |   |                         | (11,517             | ) |   |   | 21,973 |   |   |   | (11,875 | ) |
| Accounts      payable and accrued liabilities—affiliate                                                                                  |   |                         | 2,685               |   |   |   | (350 | ) |   |   | 408 |   |
| Deferred      revenue—affiliate                                                                                                          |   |                         | 765                 |   |   |   | 65,130 |   |   |   | 2,583 |   |
| Deferred      revenue                                                                                                                          |   |                         | 19,955              |   |   |   | —   |   |   |   | —   |   |
| Advances      to affiliate                                                                                                                     |   |                         | (3,160              | ) |   |   | (491 | ) |   |   | —   |   |
| Prepaid      and other                                                                                                                         |   |                         | (2,049              | ) |   |   | (6,128 | ) |   |   | (37 | ) |
| NET      CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                                                                       |   |                         | 234,311             |   |   |   | (1,156 | ) |   |   | (640 | ) |
|                                                                                                                                           |   |                         |                |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                                                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| Use      of restricted cash and cash equivalents                                                                                               |   |                         | 189,665             |   |   |   | 426,592 |   |   |   | 460,037 |   |
| LNG      terminal construction-in-process                                                                                                      |   |                         | (96,918             | ) |   |   | (402,955 | ) |   |   | (430,405 | ) |
| Advances      under long-term contracts                                                                                                        |   |                         | (601                | ) |   |   | (14,274 | ) |   |   | (39,155 | ) |
| Advances      to affiliate—LNG held for commissioning, net of amounts transferred to LNG      receiving terminal construction-in-process |   |                         | —   |   |   |   | (9,923 | ) |   |   | —   |   |
| Investment      in restricted U.S. Treasury securities                                                                                         |   |                         | —   |   |   |   | —   |   |   |   | (63,923 | ) |
| Other                                                                                                                                          |   |                         | —   |   |   |   | —   |   |   |   | (1,330 | ) |
| NET      CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                                                                                       |   |                         | 92,146              |   |   |   | (560 | ) |   |   | (74,776 | ) |
|                                                                                                                                           |   |                         |                |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                                                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| Distributions      to owners                                                                                                                   |   |                         | (280,675            | ) |   |   | (45,824 | ) |   |   | (23,668 | ) |
| Use      of (investment in) restricted cash and cash equivalents                                                                               |   |                         | 109,008             |   |   |   | (94,303 | ) |   |   | 725 |   |
| Special      rights adjustment                                                                                                                 |   |                         | (34,879             | ) |   |   | —   |   |   |   | —   |   |
| Repayment      of long-term note—affiliate                                                                                               |   |                         | (2,467              | ) |   |   | —   |   |   |   | —   |   |
| Borrowings      under long-term note—affiliate                                                                                           |   |                         | 114                 |   |   |   | 1,708 |   |   |   | 645 |   |
| Debt      issuance costs                                                                                                                       |   |                         | (23                 | ) |   |   | (4,837 | ) |   |   | (725 | ) |
| Proceeds      from issuance of Sabine Pass LNG notes                                                                                           |   |                         | —   |   |   |   | 144,965 |   |   |   | —   |   |
| Proceeds      from issuance of common units                                                                                                    |   |                         | —   |   |   |   | —   |   |   |   | 98,442 |   |
| Affiliate      payable                                                                                                                         |   |                         | —   |   |   |   | 1 |   |   |   | 3 |   |
| NET      CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                                                                                       |   |                         | (208,922            | ) |   |   | 1,710 |   |   |   | 75,422 |   |
|                                                                                                                                           |   |                         |                |   |   |   |   |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                      |   |                         | 117,535             |   |   |   | (6 | ) |   |   | 6 |   |
| CASH      AND CASH EQUIVALENTS—beginning of year                                                                                         |   |                         | 7                   |   |   |   | 13 |   |   |   | 7 |   |
| CASH      AND CASH EQUIVALENTS—end of year                                                                                               |   | $                            | 117,542             |   |   | $ | 7 |   |   | $ | 13 |   |

----

|   | • | Cheniere      Partners; |
|--------|---------|-------------------------|

|   | • | Cheniere      Energy Investments, LLC (“Cheniere Investments”) is a Delaware limited      liability company owned by Cheniere Partners and was formed on      November 21, 2006 to hold 100% of the ownership interests in Sabine      Pass GP and Sabine Pass LP; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Sabine      Pass LNG-GP, Inc. (“Sabine Pass GP”) is a Delaware corporation that was      owned by Holdings and was formed in 2004 to be the general partner of      Sabine Pass LNG, L.P.; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Sabine      Pass LNG-LP, LLC (“Sabine Pass LP”) is a Delaware limited liability      company that was owned by Holdings and was formed in 2004 to be the      limited partner of Sabine Pass LNG;and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Sabine      Pass LNG, L.P. (“Sabine Pass LNG”) is a Delaware limited partnership      formed with one general partner, Sabine Pass GP, and one limited partner,      Sabine Pass LP, which owns the entire interest in the Sabine Pass LNG      receiving terminal. The purpose of this limited partnership is to own and      operate the Sabine Pass LNG receivingterminal. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Holdings      contributed through us to our wholly-owned subsidiary, Cheniere      Investments, all of its equity interests in Sabine Pass GP and Sabine Pass      LP, which own all of the equity interests in Sabine Pass    LNG; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      issued to Holdings 21,362,193 common units and 135,383,831 subordinated      units; |
|--------|---------|---------------------------------------------------------------------------------------------|

|   | • | we      issued to our general partner, a direct wholly-owned subsidiary of      Holdings, 3,302,045 general partner units representing a 2% general      partner interest in us and all of our incentive distribution rights, which      will entitle our general partner to increasing percentages of the cash      that we distribute in excess of $0.489 per unit per    quarter; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      issued 5,054,164 common units to the public in the Cheniere Partners      Offering; |
|--------|---------|---------------------------------------------------------------------------------------------|

|   | • | Holdings      sold 8,445,836 common units to the public in the Cheniere Partners      Offering, after which Holdings and the public held an aggregate 89.8% and      8.2% limited partner interest in us,  respectively; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      general partner entered into a services agreement with an affiliate of      Cheniere under which the affiliate provides various general and      administrative services for an annual administrative fee of $10.0 million      (adjusted for inflation after January 1, 2007), with payment having      commenced January 1, 2009; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      entered into a services and secondment agreement with an affiliate of      Cheniere pursuant to which certain employees of the Cheniere affiliate      have been seconded to our general partner to provide operating and routine      maintenance services with respect to the Sabine Pass LNG receiving      terminal. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|                                                |   | December      31, |                |
|-----------------------------------------------------|--------|-------------------|---------------------|
|                                                |   | 2009              |                |   | 2008 |   |
| LNG      TERMINAL COSTS                             |   |              |                |   |   |   |
| LNG      receiving terminal                         |   | $                 | 1,627,564           |   |   | $ | 919,776 |   |
| LNG      receiving terminal construction-in-process |   |              | —   |   |   |   | 604,398 |   |
| LNG      site and related costs, net                |   |              | 176                 |   |   |   | 183 |   |
| Accumulated      depreciation                       |   |              | (39,975             | ) |   |   | (7,752 | ) |
| Total      LNG receiving terminal costs             |   |              | 1,587,765           |   |   |   | 1,516,605 |   |
| FIXED      ASSETS                                   |   |              |                |   |   |   |   |   |
| Computer      and office equipment                  |   |              | 259                 |   |   |   | 200 |   |
| Vehicles                                            |   |              | 421                 |   |   |   | 421 |   |
| Machinery      and equipment                        |   |              | 931                 |   |   |   | 751 |   |
| Other                                               |   |              | 419                 |   |   |   | 254 |   |
| Accumulated      depreciation                       |   |              | (1,238              | ) |   |   | (724 | ) |
| Total      fixed assets, net                        |   |              | 792                 |   |   |   | 902 |   |
| PROPERTY,      PLANT AND EQUIPMENT, NET             |   | $                 | 1,588,557           |   |   | $ | 1,517,507 |   |

| Components                                                                      |   | Useful      life (yrs) |   |
|---------------------------------------------------------------------------------|--------|------------------------|--------|
| LNG      storage tanks                                                          |   |                   | 50     |   |
| Marine      berth, electrical, facility and roads                               |   |                   | 35     |   |
| Regassification      processing equipment (recondensers, vaporization andvents) |   |                   | 30     |   |
| Sendout      pumps                                                              |   |                   | 20     |   |
| Others                                                                          |   |                   | 15-30  |   |

----

| Long-Term      Debt |   |   | Debt      Issuance Costs |   | Amortization      Period |   |   | AccumulatedAmortization |   |   | Net      Costs |   |
|---------------------|--------|--------|--------------------------|--------|--------------------------|--------|--------|-------------------------|--------|--------|----------------|--------|
| 2013      Notes     |   | $      | 9,353                    |   | 7      years             |   | $      | (3,993                  | )      | $      | 5,360          |   |
| 2016      Notes     |   |   | 30,057                   |   | 10      years            |   |   | (8,464                  | )      |   | 21,593         |   |
|                |   | $      | 39,410                   |   |                     |   | $      | (12,457                 | )      | $      | 26,953         |   |

|                   | Quoted      Prices in Active Markets for Identical Instruments(Level      1) |                  | Significant      Other Observable Inputs (Level 2) |   | Significant      Other Observable Inputs (Level 3) |   | Total      Carrying Value at  December 31, 2009 |                |
|------------------------|------------------------------------------------------------------------------|-----------------------|----------------------------------------------------|--------|----------------------------------------------------|--------|-----------------------------------------------------------|---------------------|
| Derivatives      asset | $                                                                            | 124    |                                               | $      | —                                  |   | $                                                         | —   |   | $ | 124    |   |

----

|                                         |   | December      31, 2009 |                |   | December      31, 2008   |   |
|----------------------------------------------|--------|------------------------|---------------------|--------|--------------------------|--------|
|                                         |   | CarryingAmount         |                |   | EstimatedFair      Value |   |   | CarryingAmount |   |   | EstimatedFair      Value |   |
| 2013      Notes (1)                          |   | $                      | 550,000             |   |                     | $      | 503,250 |   |   | $ | 550,000 |   |   | $ | 412,500 |   |
| 2016      Notes, net of discount (1)         |   |                   | 1,633,029           |   |                     |   | 1,371,744 |   |   |   | 1,628,334 |   |   |   | 1,204,967 |   |
| Note      to affiliate (2)                   |   |                   | —   |   |                     |   | —   |   |   |   | 2,372 |   |   |   | 2,379 |   |
| Restricted      U.S. Treasury securities (3) |   |                   | —   |   |                     |   | —   |   |   |   | 20,829 |   |   |   | 22,901 |   |

----

| (1) | The      fair value of the Senior Notes was based on quotations obtained from      broker-dealers who made markets in these and similar instruments as of      December 31, 2009 and December 31,2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      note to affiliate bears interest at a fixed 7½% rate. Management estimates      that the carrying amount is a reasonable approximation of the fair value      as of December 31, 2009 and2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      fair value of our restricted U.S. Treasury securities was based on      quotations obtained from broker-dealers who made markets in these and      similar instruments as of December 31, 2009 and  2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | December      31, |   |
|--------------------------------------|--------|-------------------|--------|
|                                 |   | 2009              |   |   | 2008 |   |
| Interest      and related debt fees  |   | $                 | 14,152 |   |   | $ | 14,152 |   |
| LNG      terminal construction costs |   |              | 7,850  |   |   |   | 26,617 |   |
| Affiliate                            |   |              | 3,095  |   |   |   | 184 |   |
| Other                                |   |              | 179    |   |   |   | 157 |   |
| Accrued      liabilities             |   | $                 | 25,276 |   |   | $ | 41,110 |   |

----

|                                                   |   | December      31, |                |
|--------------------------------------------------------|--------|-------------------|---------------------|
|                                                   |   | 2009              |                |   | 2008 |   |
| Senior      Notes, net of discount                     |   | $                 | 2,110,101           |   |   | $ | 2,107,673 |   |
| Senior      Notes—related party, net of discount |   |              | 72,928              |   |   |   | 70,661 |   |
| Long-term      note—affiliate                    |   |              | —   |   |   |   | 2,372 |   |
| Total      long-term debt                              |   | $                 | 2,183,029           |   |   | $ | 2,180,706 |   |

----

----

----

| Year      ending December 31:   |   | Lease      Payments (2) |   |
|--------------------------------------|--------|-------------------------|--------|
| 2010                                 | $      | 8,905                   |   |
| 2011                                 |   | 8,905                   |   |
| 2012                                 |   | 8,905                   |   |
| 2013                                 |   | 8,905                   |   |
| 2014                                 |   | 8,905                   |   |
| Later      years (1)                 |   | 230,009                 |   |
| Total      minimum payments required | $      | 274,534                 |   |

----

| (1)   | The      later years include the remaining initial term and six 10-year extensions      of Sabine Pass LNG’s land leases and the remaining initial term and two      5-year extensions of Sabine Pass LNG’s tug boat lease, as the lease option      renewals were reasonably assured. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Lease      payments for Sabine Pass LNG’s tug boat lease represent its lease payment      obligation and do not take into account the $129.6 million of sublease      payments Sabine Pass LNG will receive from its three TUA customers that      effectively offset this lease payment obligation, as discussed      below. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                    | Year Ended December      31, |   |
|-----------------------------------------------------------------------------------------|------------------------------|--------|
|                                                                                    | 2009                         |   | 2008 |   | 2007 |   |
| Cash      paid for interest, net of amounts capitalized                                 |                         | $      | 138,659 |   |   | $ | 77,243 |   |   | $ | 93,642 |   |
| Non-cash      equity contribution                                                       |                         |   | —   |   |   |   | —   |   |   |   | —   |   |
| Construction-in-process      and debt issuance additions funded with accruedliabilities |                         |   | (66 | ) |   |   | 9,893 |   |   |   | 60,555 |   |

----

|                                     |   | FirstQuarter |                |   | SecondQuarter |   |                | ThirdQuarter |   |   | FourthQuarter       |   |
|------------------------------------------|--------|--------------|---------------------|--------|---------------|--------|---------------------|--------------|--------|--------|---------------------|--------|
| Year      ended December 31, 2009:  |   |         |                |   |          |   |                |         |   |   |                |   |
| Revenues                                 |   | $            | 62,549              |   |          | $      | 95,695              |         |   | $      | 128,533             |   |   | $ | 130,013 |   |
| Income      from operations              |   |         | 43,396              |   |          |   | 74,282              |         |   |   | 106,367             |   |   |   | 103,875 |   |
| Net      income                          |   |         | 13,588              |   |          |   | 41,951              |         |   |   | 69,501              |   |   |   | 61,872 |   |
| Net      income per limited partner unit |   | $            | 0.08                |   |          | $      | 0.26                |         |   | $      | 0.43                |   |   | $ | 0.37 |   |
|                                     |   |         |                |   |          |   |                |         |   |   |                |   |   |   |   |   |
| Year      ended December 31, 2008:  |   |         |                |   |          |   |                |         |   |   |                |   |   |   |   |   |
| Revenues                                 |   | $            | —   |   |          | $      | —   |         |   | $      | —   |   |   | $ | 15,000 |   |
| Loss      from operations                |   |         | (4,100              | )      |          |   | (2,748              | )            |   |   | (10,026             | )      |   |   | (267 | ) |
| Net      loss                            |   |         | (14,515             | )      |          |   | (24,513             | )            |   |   | (10,897             | )      |   |   | (28,419 | ) |
| Net      loss per limited partner unit   |   | $            | (0.09               | )      |          | $      | (0.15               | )            |   | $      | (0.07               | )      |   | $ | (0.17 | ) |

----

----

|                            |   |                                                             |
|---------------------------------|--------|------------------------------------------------------------------|
| Name                            | Age    |    Position      with Our General Partner         |
| Charif      Souki               | 57     | Director,      Chairman of the Board and Chief Executive Officer |
| R.      Keith Teague            | 45     | Director,      President and Chief Operating Officer             |
| Meg      A. Gentle              | 35     | Director,      Senior Vice President and Chief Financial Officer |
| James      D. Bennett           | 40     | Director                                                         |
| Michael      E.  Bock | 44     | Director                                                         |
| Lon      McCain                 | 62     | Director                                                         |
| Robert      J. Sutcliffe        | 58     | Director                                                         |
| Don      A. Turkleson           | 55     | Director                                                         |
| Walter      L. Williams         | 82     | Director                                                         |

----

----

----

----

| Name                         |   | FeesEarnedor      Paidin      Cash |                | UnitAwards      (1) |   | OptionAwards        |   | Non-EquityIncentive      PlanCompensation |                | Change      inPension      ValueandNonqualifiedDeferredCompensationEarnings |   | All      OtherCompensation |   | Total  |
|------------------------------|--------|------------------------------------|---------------------|---------------------|--------|---------------------|--------|-------------------------------------------|---------------------|-----------------------------------------------------------------------------|--------|----------------------------|--------|--------|
| Charif      Souki (2)        |   | $                                  | —   |                | $      | —   |   | $                                         | —   |                                                                        | $      | —          |   | $      | —   |   | $ | —   |   | $ | —   |
| R.      Keith Teague(2)      |   |                               | —   |                |   | —   |   |                                      | —   |                                                                        |   | —          |   |   | —   |   |   | —   |   |   | —   |
| Meg      A. Gentle (2)       |   |                               | —   |                |   | —   |   |                                      | —   |                                                                        |   | —          |   |   | —   |   |   | —   |   |   | —   |
| James      D. Bennett (3)    |   |                               | 62,500              |                |   | 32,100              |   |                                      | —   |                                                                        |   | —          |   |   | —   |   |   | —   |   |   | 94,600 |
| Mike      Bock (4)           |   |                               | 32,500              |                |   | 93,600              |   |                                      | —   |                                                                        |   | —          |   |   | —   |   |   | —   |   |   | 126,100 |
| Lon      McCain (5)          |   |                               | 80,000              |                |   | 22,320              |   |                                      | —   |                                                                        |   | —          |   |   | —   |   |   | —   |   |   | 102,320 |
| Robert      J. Sutcliffe (6) |   |                               | 70,000              |                |   | 22,320              |   |                                      | —   |                                                                        |   | —          |   |   | —   |   |   | —   |   |   |  92,320 |
| Don      A. Turkleson (7)    |   |                               | 25,000              |                |   | 93,600              |   |                                      | —   |                                                                        |   | —          |   |   | —   |   |   | 665 |   |   | 119,265 |
| Walter      L. Williams (8)  |   |                               | 50,000              |                |   | 26,520              |   |                                      | —   |                                                                        |   | —          |   |   | —   |   |   | 11,556 |   |   | 88,076 |

----

| (1) | Reflects      aggregate grant date fair value.  The phantom units are to be      settled in cash. The units are valued using the closing unit price on the      date of grant and are revalued on a quarterly basis through the date of      vesting. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Charif      Souki, Keith Teague and Meg Gentle are executive officers of our general      partner and are also executive officers of Cheniere. Cheniere compensates      these officers for the performance of their duties as executive officers      of Cheniere, which includes managing our partnership. They do not receive      additional compensation for service as  directors. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Mr. Bennett      was granted 3,000 phantom units in 2009 with a grant date fair value of      $32,100. As of December 31, 2009, he held a total of 12,000 phantom      units.  Mr. Bennett disclaims beneficial ownership of these      units.  Mr. Bennett is an employee of GSO Capital Partners LP or      one of its affiliates (“GSO”).  Under the terms of such      employment, Mr. Bennett is required to transfer to GSO or its clients, as      applicable, any and all compensation received in connection with his      directorship for any portfolio companies managed by GSO.  GSO      received $32,100 in cash upon the vesting of Mr. Bennett’s 3,000 phantom      units in December 2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Mr. Bock      was granted 12,000 phantom units in 2009 with a grant date fair value of      $93,600. As of December 31, 2009, he held a total of 12,000 phantom      units. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. McCain      was granted 3,000 phantom units in 2009 with a grant date fair value of      $22,320. As of December 31, 2009, he held a total of 11,250 phantom      units. Mr. McCain received $27,900 in cash upon the vesting of 3,750      phantom units in May 2009. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Mr. Sutcliffe      was granted 3,000 phantom units in 2009 with a grant date fair value of      $22,320. As of December 31, 2009, he held a total of 11,250 phantom      units. Mr. Sutcliffe received $27,900 in cash upon the vesting of      3,750 phantom units in May 2009. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Mr.      Turkleson became a non-employee director, effective as of June 1, 2009,      and was granted 12,000 phantom units in 2009 with a grant date fair value      of $93,600.  As of December 31, 2009, he held a total of 12,000      phantom units.  Mr. Turkleson also had use of a blackberry      provided by Cheniere during 2009.  The blackberry expense was      approximately $665. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Mr.      Williams was granted 3,000 phantom units in 2009 with a grant date fair      value of $26,520. As of December 31, 2009, he held a total of 12,000      phantom units. Mr. Williams received $26,520 in cash upon the vesting of      3,000 phantom units in September 2009.  Mr. Williams also had      use of an office, parking space, laptop and blackberry at Cheniere’s      headquarters during 2009. The pro rata amount of office lease expense      related to that space was approximately $3,308.  The parking      expense was approximately $3,248 and the laptop blackberry expense was      approximately $5,000. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | each      person who beneficially owns more than 5% of the units;      |
|--------|---------|-----------------------------------------------------------------------------|

|   | • | each      of the directors of our general partner;  |
|--------|---------|----------------------------------------------------------|

|   | • | each      of the executive officers of our general partner; and      |
|--------|---------|---------------------------------------------------------------------------|

|   | • | all      directors and executive officers of our general partner as a      group. |
|--------|---------|-----------------------------------------------------------------------------------|

----

| Name      of Beneficial Owner                                            | CommonUnitsBeneficiallyOwned | PercentageofCommonUnitsBeneficiallyOwned | SubordinatedUnitsBeneficiallyOwned | PercentageOfSubordinatedUnitsBeneficiallyOwned | Percentageof      TotalEquitySecuritiesBeneficiallyOwned |
|--------------------------------------------------------------------------|------------------------------|------------------------------------------|------------------------------------|------------------------------------------------|----------------------------------------------------------|
| Cheniere      Energy, Inc. (1)(2)                                        | 10,891,357                   | 41%                                      | 135,383,831                        | 100%                                           | 89%                                                      |
| Cheniere      LNG Holdings, LLC (2)(3)                                   | 10,891,357                   | 41%                                      | 135,383,831                        | 100%                                           | 89%                                                      |
| Cheniere      Subsidiary Holdings, LLC (2)(3)                            | —            | —                        | 135,383,831                        | 100%                                           | 82%                                                      |
| Cheniere      Common Units Holding, LLC (2)(3)                           | 10,891,357                   | 41%                                      | —                  | 100%                                           |  7%                                                 |
| Charif      Souki (4)                                                    | 373,496                      | 1%                                       | —                  | —                              | *                                                        |
| R.      Keith Teague                                                     | —            | —                        | —                  | —                              | —                                        |
| Meg      A. Gentle                                                       | 8,035                        | *                                        | —                  | —                              | *                                                        |
| James      D. Bennett                                                    | —            | —                             | —                  | —                                   | —                                        |
| Mike      Bock                                                           | —            | —                        | —                  | —                              | —                                        |
| Lon      McCain                                                          | —            | —                        | —                  | —                              | —                                        |
| Robert      J. Sutcliffe                                                 | —            | —                        | —                  | —                              | —                                        |
| Don      A. Turkleson                                                    | 25,000                       | *                                        | —                  | —                              | *                                                        |
| Walter      L. Williams                                                  | 15,388                       | *                                        | —                  | —                              | —                                        |
| All      executive officers and directors as a group    (9 persons) | 421,919                      | 1%                                       | —                  | —                              | *                                                        |

----

|  * | Less      than 1% |
|---------|-------------------|

| (1) | Cheniere      Energy, Inc. is the ultimate parent company of Cheniere LNG Holdings, LLC,      Cheniere Subsidiary Holdings, LLC and Cheniere Common Units Holding, LLC      and may, therefore, be deemed to beneficially own the units held by      Cheniere LNG Holdings, LLC, Cheniere Subsidiary Holdings, LLC and Cheniere      Common Units Holding, LLC. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Cheniere      LNG Holdings, LLC owns 100% of the equity interests in our general partner      and an 89% limited partner interest in us either directly or through      Cheniere Subsidiary Holdings, LLC and Cheniere Common Units Holding, LLC,      each a wholly-owned subsidiary, and may, therefore, be deemed to      beneficially own the units held by Cheniere Subsidiary Holdings, LLC and      Cheniere Common Units Holding, LLC. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | All      of Cheniere LNG Holdings, LLC’s subordinated units are pledged as      collateral to The Bank of New York Mellon, as administrative agent under      the Credit Agreement, dated May 31, 2007. All of Cheniere LNG      Holdings, LLC’s common units are pledged as collateral to The Bank of New      York Mellon, as collateral agent, under the 2008 Convertible      Loans. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Mr. Souki      holds 90,396 units directly and his wife owns 283,100    units. |
|-----|-------------------------------------------------------------------------------------|

| Plan      Category                                              |   | Number of securities      to be issued upon exercise of outstanding options, warrants and      rights (1) |                | Weighted-average exercise      price of outstandingoptions,      warrants and rights |   | Number of securities      remaining available for future issuance under equity compensation plans      (excluding securities reflected in the first column) |
|-----------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|---------------------|-------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity      compensation plans approved by security holders     |   |                                                                                                                     | —   |                                                                                      |   | N/A                                                                                                                                                                   |   |   | —   |
| Equity      compensation plans not approved by security holders |   |                                                                                                                     | —   |                                                                                      |   | N/A                                                                                                                                                                   |   |   | 1,250,000 |
| Total                                                           |   |                                                                                                                     | —   |                                                                                      |   | N/A                                                                                                                                                                   |   |   | 1,250,000 |

----

| (1) | The      phantom units that have been granted are payable in cash at the time of      vesting in an amount equal to the fair market value of a common unit on      such date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | • | a      director who is, or during the past three years was, employed by the      partnership, general partner or by any parent or subsidiary of the      partnership or general partner;  |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a      director who accepts, or has an immediate family member who accepts, any      compensation from the partnership, general partner or by any parent or      subsidiary of the partnership or general partner in excess of $120,000      during any twelve consecutive-month period or any of the past three fiscal      years, other than compensation for board or committee services, or      compensation paid to an immediate family member who is a non-executive      employee of the partnership, general partner or by any parent or      subsidiary of the partnership or general partner, among other exceptions;        |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a      director who is an immediate family member of an individual who is, or has      been in any of the past three years, employed by the partnership, general      partner or by any parent or subsidiary of the partnership or general      partner as an executive officer;  |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a      director who is, or has an immediate family member who is, a partner in,      or a controlling shareholder or an executive officer of, any organization      to which the partnership, general partner or any parent or subsidiary of      the partnership or general partner made, or from which the partnership,      general partner or any parent or subsidiary of the partnership or general      partner received, payments (other than those arising solely from      investments in our common units or payments under non-discretionary      charitable contribution matching programs) that exceed 5% of the      organization’s consolidated gross revenues for that year, or $200,000,      whichever is more, in any of the most recent three fiscal years;        |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a      director who is, or has an immediate family member who is, employed as an      executive officer of another entity where at any time during the most      recent three fiscal years any of the executive officers of the      partnership, general partner or of any parent or subsidiary of the      partnership or general partner serves on the compensation committee of      such other entity; or   |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a      director who is, or has an immediate family member who is, a current      partner of the outside auditor of the partnership, general partner or      parent or subsidiary of the partnership or general partner, or was a      partner or employee of the outside auditor of the partnership, general      partner or any parent or subsidiary of the partnership or general partner      who worked on our audit at any time during any of the past three      years. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                    |   | Ernst      & Young LLP |          |
|-------------------------|--------|----------------------------|---------------|
|                    |   | Fiscal      2009           |          |   | Fiscal      2008 |   |
| Audit      Fees         |   | $                          | 800,000       |   |   | $ | 750,002 |   |
| Audit-Related      Fees |   |                       | —  |   |   |   | 77,661 |   |
| Total                   |   | $                          | 800,000       |   |   | $ | 827,663 |   |

----

| (a) | Financial      Statements and Exhibits |
|-----|----------------------------------------|

| (1)   | Financial      Statements—Cheniere Energy Partners,L.P.: |
|-----------------|----------------------------------------------------------------|

| Management’s Report to the Unitholders of Cheniere      Energy Partners, L.P.                                   | 40  |
|-----------------------------------------------------------------------------------------------------------------------|----------|
| Reports of Independent Registered Public      Accounting Firm—Ernst & Young LLP                        | 41  |
| Consolidated Balance    Sheets                                                                                        | 43  |
| Consolidated Combined Statements of      Operations                                                                   | 44  |
| Consolidated Combined Statements of Partners’ and      Owners’ Capital (Deficit)                          | 45  |
| Consolidated Combined Statements of Cash      Flows                                                                   | 46  |
| Notes to      Consolidated Combined Financial Statements                                                              | 47  |
| Supplemental Information to Consolidated Combined      Financial Statements—Summarized Quarterly Financial Data | 62  |

| (2) | Financial      Statement Schedules: |
|-----|-------------------------------------|

| Schedule I—Condensed Parent Company Financial      Statements for the years ended December 31, 2009, 2008 and      2007 | 76  |
|------------------------------------------------------------------------------------------------------------------------------------|----------|

| (3) | Exhibits |
|-----|----------|

|             |                                                                                                                                                                                                                                                                                                         |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit      No. | Description                                                                                                                                                                                                                                                                                                  |
|             |                                                                                                                                                                                                                                                                                                         |
| 2.1*             | Contribution      and Conveyance Agreement. (Incorporated by reference to Exhibit 10.4 to      Cheniere Energy Partners, L.P.’s Current Report on Form 8-K (SEC File No.      001-33366), filed on March 26, 2007)                                                                                     |
|             |                                                                                                                                                                                                                                                                                                         |
| 3.1*             | Certificate      of Limited Partnership of Cheniere Energy Partners, L.P. (Incorporated by      reference to Exhibit 3.1 to Cheniere Energy Partners, L.P.’s Registration      Statement on Form S-1 (SEC File No. 333-139572), filed on December 21,      2006)                                       |
|             |                                                                                                                                                                                                                                                                                                         |
| 3.2*             | First      Amended and Restated Agreement of Limited Partnership of Cheniere Energy      Partners, L.P. (Incorporated by reference to Exhibit 3.1 to Cheniere      Energy Partners, L.P.’s Current Report on Form 8-K (SEC File No.      001-33366), filed on March 26, 2007)                          |
|             |                                                                                                                                                                                                                                                                                                         |
| 3.3*             | Certificate      of Formation of Cheniere Energy Partners GP, LLC. (Incorporated by      reference to Exhibit 3.3 to Cheniere Energy Partners, L.P.’s Registration      Statement on Form S-1 (SEC File No. 333-139572), filed on December 21,      2006)                                              |
|             |                                                                                                                                                                                                                                                                                                         |
| 3.4*             | Second      Amended and Restated Limited Liability Company Agreement of Cheniere      Energy Partners GP, LLC. (Incorporated by reference to Exhibit 3.1 to      Cheniere Energy Partners, L.P.’s Quarterly Report on Form 10-Q (SEC File      No. 001-33366), filed on August 8, 2007)                |
|             |                                                                                                                                                                                                                                                                                                         |
| 4.1*             | Form      of common unit certificate. (Incorporated by reference to Exhibit A to      Exhibit 3.2 above)                                                                                                                                                                                                     |
|             |                                                                                                                                                                                                                                                                                                         |
| 4.2*             | Indenture,      dated as of November 9, 2006, between Sabine Pass LNG, L.P., as issuer,      and The Bank of New York, as trustee. (Incorporated by reference to      Exhibit 4.1 to Cheniere Energy, Inc.’s Current Report on Form 8-K (SEC      File No. 001-16383), filed on November 16, 2006)     |
|             |                                                                                                                                                                                                                                                                                                         |
| 4.3*             | Form      of 7.25% Senior Secured Note due 2013 (Included as Exhibit A1 to Exhibit      4.2 above)                                                                                                                                                                                                           |
|             |                                                                                                                                                                                                                                                                                                         |
| 4.4*             | Form      of 7.50% Senior Secured Note due 2016 (Included as Exhibit A1 to Exhibit      4.2 above)                                                                                                                                                                                                           |
|             |                                                                                                                                                                                                                                                                                                         |
| 10.1*            | LNG      Terminal Use Agreement, dated September 2, 2004, by and between Total LNG      USA, Inc. and Sabine Pass LNG, L.P. (Incorporated by reference to Exhibit      10.1 to Cheniere Energy, Inc.’s Quarterly Report on Form 10-Q (SEC File      No. 001-16383), filed on November 15, 2004)        |
|             |                                                                                                                                                                                                                                                                                                         |
| 10.2*            | Amendment      of LNG Terminal Use Agreement, dated January 24, 2005, by and between      Total LNG USA, Inc. and Sabine Pass LNG, L.P. (Incorporated by reference      to Exhibit 10.40 to Cheniere Energy, Inc.’s Annual Report on Form 10-K      (SEC File No. 001-16383), filed on March 10, 2005) |
|             |                                                                                                                                                                                                                                                                                                         |
| 10.3*            | Omnibus      Agreement, dated September 2, 2004, by and between Total LNG USA,      Inc. and Sabine Pass LNG, L.P. (Incorporated by reference to Exhibit 10.2      to Cheniere Energy, Inc.’s Quarterly Report on Form 10-Q (SEC File No.      001-16383), filed on November 15,2004)        |

----

| Exhibit      No. | Description                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.4*            | Guaranty,      dated as of November 9, 2004, by Total S.A. in favor of Sabine Pass LNG,      L.P. (Incorporated by reference to Exhibit 10.3 to Cheniere Energy, Inc.’s      Quarterly Report on Form 10-Q (SEC File No. 001 16383), filed on November      15, 2004)                                                                                                                                                                       |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.5*            | LNG      Terminal Use Agreement, dated November 8, 2004, between Chevron U.S.A.      Inc. and Sabine Pass LNG, L.P. (Incorporated by reference to Exhibit 10.4      to Cheniere Energy, Inc.’s Quarterly Report on Form 10-Q (SEC File No.      001-16383), filed on November 15, 2004)                                                                                                                                                     |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.6*            | Amendment      to LNG Terminal Use Agreement, dated December 1, 2005, by and between      Chevron U.S.A., Inc. and Sabine Pass LNG, L.P. (Incorporated by reference      to Exhibit 10.28 to Sabine Pass LNG, L.P.’s Registration Statement on Form      S-4 (SEC File No. 333-138916), filed on November 22,  2006)                                                                                                                        |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.7*            | Omnibus      Agreement, dated November 8, 2004, between Chevron U.S.A., Inc. and Sabine      Pass LNG, L.P. (Incorporated by reference to Exhibit 10.5 to Cheniere      Energy, Inc.’s Quarterly Report on Form 10-Q (SEC File No. 001-16383),      filed on November 15, 2004)                                                                                                                                                             |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.8*            | Guaranty      Agreement, dated as of December 15, 2004, from ChevronTexaco Corporation      to Sabine Pass LNG, L.P. (Incorporated by reference to Exhibit 10.12 to      Sabine Pass LNG, L.P.’s Registration Statement on Form S-4 (SEC File No.      333-138916), filed on November 22, 2006)                                                                                                                                             |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.9*            | Amended      and Restated Terminal Use Agreement, dated November 9, 2006, by and      between Cheniere Marketing, Inc. and Sabine Pass LNG, L.P. (Incorporated      by reference to Exhibit 10.6 to Cheniere Energy, Inc.’s Current Report on      Form 8-K (SEC File No. 001-16383), filed on November 16,    2006)                                                                                                                        |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.10*           | Amendment      of LNG Terminal Use Agreement, dated June 25, 2007, by and between      Cheniere Marketing, Inc. and Sabine Pass LNG, L.P. (Incorporated by      reference to Exhibit 10.1 to Cheniere Energy, Inc.’s Current Report on      Form 8-K (SEC File No. 001-16383), filed on June 26,  2007)                                                                                                                                     |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.11*           | Cooperative      Endeavor Agreement & Payment in Lieu of Tax Agreement, dated October      23, 2007 (amending the Amended and Restated Terminal Use Agreement, dated      November 9, 2006, by and between Cheniere Marketing, Inc. and Sabine Pass      LNG, L.P.). (Incorporated by reference to Exhibit 10.7 to Cheniere Energy,      Inc.’s Quarterly Report on Form 10-Q (SEC File No. 001-16383), filed on      November 6, 2007) |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.12*           | LNG      Lease Agreement, dated June 24, 2008, between Cheniere Marketing, Inc. and      Sabine Pass LNG, L.P. (Incorporated by reference to Exhibit 10.7 to      Cheniere Energy, Inc.’s Quarterly Report on Form 10-Q (SEC File No.      001-16383), filed on August 11, 2008)                                                                                                                                                            |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.13*           | Guarantee      Agreement, dated as of November 9, 2006, by Cheniere Energy, Inc.      (Incorporated by reference to Exhibit 10.7 to Cheniere Energy, Inc.’s      Current Report on Form 8-K (SEC File No. 001-16383), filed on November 16,      2006)                                                                                                                                                                                      |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.14*           | Collateral      Trust Agreement, dated November 9, 2006, by and among Sabine Pass LNG,      L.P., The Bank of New York, as collateral trustee, Sabine Pass LNG-GP,      Inc. and Sabine Pass LNG-LP, LLC. (Incorporated by reference to Exhibit      10.1 to Cheniere Energy, Inc.’s Current Report on Form 8-K (SEC File No.      001-16383), filed on November 16, 2006)                                                                  |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.15*           | Amended      and Restated Parity Lien Security Agreement, dated November 9, 2006, by      and between Sabine Pass LNG, L.P. and The Bank of New York, as collateral      trustee. (Incorporated by reference to Exhibit 10.2 to Cheniere Energy,      Inc.’s Current Report on Form 8-K (SEC File No. 001-16383), filed on      November 16, 2006)                                                                                          |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.16*           | Third      Amended and Restated Multiple Indebtedness Mortgage, Assignment of Rents      and Leases and Security Agreement, dated November 9, 2006, between the      Sabine Pass LNG, L.P. and The Bank of New York, as collateral trustee.      (Incorporated by reference to Exhibit 10.3 to Cheniere Energy, Inc.’s      Current Report on Form 8-K (SEC File No. 001-16383), filed on November 16,      2006)                           |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.17*           | Amended      and Restated Parity Lien Pledge Agreement, dated November 9, 2006, by and      among Sabine Pass LNG, L.P., Sabine Pass LNG-GP, Inc., Sabine Pass LNG-LP,      LLC and The Bank of New York, as collateral trustee. (Incorporated by      reference to Exhibit 10.4 to Cheniere Energy, Inc.’s Current Report on      Form 8-K (SEC File No. 001-16383), filed on November 16,      2006)                                      |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.18*           | Security      Deposit Agreement, dated November 9, 2006, by and among Sabine Pass LNG,      L.P., The Bank of New York, as collateral trustee, and The Bank of New      York, as depositary agent. (Incorporated by reference to Exhibit 10.5 to      Cheniere Energy, Inc.’s Current Report on Form 8-K (SEC File No.      001-16383), filed on November 16, 2006)                                                                         |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.19*           | Letter      Agreement, dated May 8, 2007, between Cheniere Marketing, Inc. and Sabine      Pass LNG, L.P. (Incorporated by reference to Exhibit 10.8 to Cheniere      Energy, Inc.’s Quarterly Report on Form 10-Q (SEC File No. 001-16383),      filed                                                                                                                                                                                     |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

| Exhibit      No.          | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                      |  on      May 8, 2007), and Form of LNG Terminal Use Agreement between J&S      Cheniere S.A. and Sabine Pass LNG, L.P. (Incorporated by reference to      Exhibit B of Exhibit 8.2(a) of Exhibit 10.8 to Cheniere Energy, Inc.’s      Quarterly Report on Form 10-Q (SEC File No. 001-16383), filed on May 8,      2007)                                                                                                                                                    |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.20*                    | Operation      and Maintenance Agreement, dated February 25, 2005, between Sabine Pass      LNG, L.P. and Cheniere LNG O&M Services, L.P. (Incorporated by      reference to Exhibit 10.5 to Cheniere Energy, Inc.’s Current Report on      Form 8-K (SEC File No. 001-16383), filed on March 2,  2005)                                                                                                                                                                          |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.21*                    | Assignment,      Assumption, Consent and Release Agreement, dated March 26, 2007, among      Cheniere LNG O&M Services, L.P., Cheniere Energy Partners GP, LLC and      Sabine Pass LNG, L.P. (Incorporated by reference to Exhibit 10.53 to the      Cheniere Energy Partners, L.P. Annual Report on Form 10-K (SEC File No.      001-33366) filed on February 27, 2009)                                                                                                              |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.22*                    | Services      and Secondment Agreement, dated March 26, 2007, between Cheniere LNG      O&M Services, L.P. and Cheniere Energy Partners GP, LLC. (Incorporated      by reference to Exhibit 10.2 to Cheniere Energy Partners, L.P.’s Current      Report on Form 8-K (SEC File No. 001-33366), filed on March 26,      2007)                                                                                                                                                     |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.23*                    | CQP      GP Consent and Agreement (Operation and Maintenance Agreement), dated      August 15, 2008, among Cheniere LNG O&M Services, LLC, Cheniere Energy      Partners GP, LLC and The Bank of New York Mellon. (Incorporated by      reference to Exhibit 10.2 to Cheniere Energy, Inc.’s Quarterly Report on      Form 10-Q (SEC File No. 001-16383), filed on November 7,    2008)                                                                                          |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.24*                    | Sabine      Consent and Agreement (Operation and Maintenance Agreement), dated August      15, 2008, among Cheniere Energy Partners GP, LLC, Sabine Pass LNG, L.P.      and The Bank of New York Mellon. (Incorporated by reference to Exhibit      10.4 to Cheniere Energy, Inc.’s Quarterly Report on Form 10-Q (SEC File      No. 001-16383), filed on November 7, 2008)                                                                                                          |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.25*                    | Management      Services Agreement, dated February 25, 2005, between Sabine Pass      LNG-GP, Inc. and Sabine Pass LNG, L.P. (Incorporated by reference to      Exhibit 10.6 to Cheniere Energy, Inc.’s Current Report on Form 8-K (SEC      File No. 001-16383), filed on March 2, 2005)                                                                                                                                                                                  |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.26*                    | Letter      Agreement (Management Services Agreement), dated September 1, 2006,      between Sabine Pass LNG-GP, Inc. and Cheniere LNG Terminals, Inc.      (Incorporated by reference to Exhibit 10.29 to Cheniere Energy Partners,      L.P.’s Registration Statement on Form S-1 (SEC File No. 333-139572), filed      on February 14, 2007)                                                                                                                                      |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.27*                    | Assignment,      Assumption, Consent and Release Agreement (Management Services Agreement),      dated August 15, 2008, between Sabine Pass LNG-GP, Inc., Cheniere LNG      Terminals, Inc. and Sabine Pass LNG, L.P. (Incorporated by reference to      Exhibit 10.1 to Cheniere Energy, Inc.’s Quarterly Report on Form 10-Q (SEC      File No. 001-16383), filed on November 7, 2008)                                                                                             |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.28*                    | Sabine      Consent and Agreement (Management Services Agreement), dated August 15,      2008, among Cheniere LNG Terminals, Inc., Sabine Pass LNG, L.P. and The      Bank of New York Mellon. (Incorporated by reference to Exhibit 10.5 to      Cheniere Energy, Inc.’s Quarterly Report on Form 10-Q (SEC File No.      001-16383), filed on November 7, 2008)                                                                                                                    |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|        10.29*        |        Management      and Administrative Services Agreement, dated March 26,2 007, between      Cheniere Energy Partners, L.P. and Cheniere LNG Terminals, Inc.      (Incorporated by reference to Exhibit 10.1 to Cheniere Energy Partners,      L.P.’s Current Report on Form 8-K (SEC File No. 001-33366), filed on March      26, 2007)                                                                                                                                    |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|        10.30*        |        CQP      Consent and Agreement (Management and Administrative Services Letter      Agreement), dated August 15, 2008, among Cheniere LNG Terminals, Inc.,      Cheniere Energy Partners, L.P. and The Bank of New York Mellon.      (Incorporated by reference to Exhibit 10.3 to Cheniere Energy, Inc.’s      Quarterly Report on Form 10-Q (SEC File No. 001-16383), filed on November      7, 2008)                                                                   |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|        10.31*        |        Settlement      and Purchase Agreement dated as of June 14, 2001, by and among Cheniere      Energy, Inc., CXY Corporation, Crest Energy, L.L.C., Crest Investment      Company and Freeport LNG Terminal, LLC, and two related letter agreements,      each dated February 27, 2003. (Incorporated by reference to Exhibit 10.36      to Cheniere Energy Partners, L.P.’s Registration Statement on Form S-1      (SEC File No. 333-139572), filed on January 25, 2007) |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|        10.32*        |        Letter      regarding Assumption and Adoption of Obligations under Settlement and      Purchase Agreement, dated May 9, 2005, and Indemnification Agreement,      dated May 9, 2005, by Cheniere Energy, Inc. (Incorporated by reference to      Exhibit 10.29 to Sabine Pass LNG, L.P.’s Registration Statement on Form      S-4/A (SEC File No. 333-138916), filed on January 10,  2007)                                                                               |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|        10.33*† |        Cheniere      Energy Partners, L.P. 2007 Long-Term Incentive Plan. (Incorporated by      reference to Exhibit 10.3 to                                                                                                                                                                                                                                                                                                                                                          |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

| Exhibit      No. | Description                                                                                                                                                                                                                                                                                    |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                                                                                                           |
|             | Cheniere      Energy Partners, L.P.’s Current Report on Form 8-K (SEC File No.      001-33366), filed on March 26, 2007)                                                                                                                                                                 |
|             |                                                                                                                                                                                                                                                                                           |
| 10.34*†    | Form      of Restricted Units Agreement for employees, consultants and directors      (three-year). (Incorporated by reference to Exhibit 10.39 to Cheniere      Energy Partners, L.P.’s Registration Statement on Form S-1 (SEC File No.      333-139572), filed on March 2, 2007)      |
|             |                                                                                                                                                                                                                                                                                           |
| 10.35*†    | Form      of Restricted Units Agreement for employees, consultants and directors      (four-year). (Incorporated by reference to Exhibit 10.40 to Cheniere      Energy Partners, L.P.’s Registration Statement on Form S-1 (SEC File No.      333-139572), filed on March 2, 2007)       |
|             |                                                                                                                                                                                                                                                                                           |
| 10.36*†    | Form      of Director Units Option Agreement for employees and consultants      (four-year). (Incorporated by reference to Exhibit 10.41 to Cheniere      Energy Partners, L.P.’s Registration Statement on Form S-1 (SEC File No.      333-139572), filed on March 2, 2007)             |
|             |                                                                                                                                                                                                                                                                                           |
| 10.37*†    | Form      of Units Option Agreement for employees and consultants (three-year).      (Incorporated by reference to Exhibit 10.42 to Cheniere Energy Partners,      L.P.’s Registration Statement on Form S-1 (SEC File No. 333-139572), filed      on March 2, 2007)                     |
|             |                                                                                                                                                                                                                                                                                           |
| 10.38*†    | Form      of Units Option Agreement for employees and consultants (four-year).      (Incorporated by reference to Exhibit 10.43 to Cheniere Energy Partners,      L.P.’s Registration Statement on Form S-1 (SEC File No. 333-139572), filed      on March 2, 2007)                      |
|             |                                                                                                                                                                                                                                                                                           |
| 10.39*†    | Form      of Phantom Units Agreement for employees, consultants and directors      (four-year). (Incorporated by reference to Exhibit 10.44 to Cheniere      Energy Partners, L.P.’s Registration Statement on Form S-1 (SEC File No.      333-139572), filed on March 2, 2007)     |
|             |                                                                                                                                                                                                                                                                                           |
| 10.40*†    | Form      of Phantom Units Agreement for employees, consultants and directors      (three-year). (Incorporated by reference to Exhibit 10.45 to Cheniere      Energy Partners, L.P.’s Registration Statement on Form S-1 (SEC File No.      333-139572), filed on March 2, 2007)         |
|             |                                                                                                                                                                                                                                                                                           |
| 10.41*†    | Form      of Phantom Units Agreement. (Incorporated by reference to Exhibit 10.2 to      Cheniere Energy Partners, L.P.’s Current Report on Form 8-K (SEC File No.      001-33366), filed on June 4, 2007)                                                                               |
|             |                                                                                                                                                                                                                                                                                           |
| 10.42*†    | Summary      of Compensation to Independent Directors. (Incorporated by reference to      Exhibit 10.1 to Cheniere Energy Partners, L.P.’s Current Report on Form      8-K (SEC File No. 001-33366), filed on June 4,  2007)                                                        |
|             |                                                                                                                                                                                                                                                                                           |
| 10.43*†    | Form      of Indemnification Agreement for officers and/or directors of Cheniere      Energy Partners GP, LLC. (Incorporated by reference to Exhibit 10.1 to      Cheniere Energy Partners, L.P.’s Current Report on Form 8-K (SEC File No.      001-33366), filed on April 6,2009) |

|        |                                                                                                                                                         |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 21.1   | Subsidiaries      of Cheniere Energy Partners, L.P.                                                                                                          |
|   |                                                                                                                                                         |
| 23.1   | Consent      of Ernst & Young LLP                                                                                                                        |
|   |                                                                                                                                                         |
| 31.1   | Certification      by Chief Executive Officer required by Rule 13a-14(a) and 15d-14(a) under      the Exchange Act                                           |
|   |                                                                                                                                                         |
| 31.2   | Certification      by Chief Financial Officer required by Rule 13a-14(a) and 15d-14(a) under      the Exchange Act                                           |
|   |                                                                                                                                                         |
| 32.1   | Certification      by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002 |
|   |                                                                                                                                                         |
| 32.2   | Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002 |

----

| * | Incorporated      by reference |
|---|--------------------------------|

| † | Management      contract or compensatory plan orarrangement |
|---------|-------------------------------------------------------------|

----

|                                                  |   | December      31, |                |
|-------------------------------------------------------|--------|-------------------|---------------------|
|                                                  |   | 2009              |                |   | 2008 |   |
| ASSETS                                                |   |              |                |   |   |   |
| CURRENT      ASSETS                                   |   |              |                |   |   |   |
| Cash      and cash equivalents                        |   | $                 | 130                 |   |   | $ | 6 |   |
| Interest      receivable                              |   |              | —   |   |   |   | 1,726 |   |
| Prepaid      expenses and other                       |   |              | 242                 |   |   |   | —   |   |
| Total      current assets                             |   |              | 372                 |   |   |   | 1,732 |   |
| Non-current      restricted cash and cash equivalents |   |              | —   |   |   |   | 11,928 |   |
| Non-current      restricted treasury securities       |   |              | —   |   |   |   | 20,829 |   |
| Total      assets                                     |   | $                 | 372                 |   |   | $ | 34,489 |   |
| LIABILITIES AND STOCKHOLDERS’      EQUITY       |   |              |                |   |   |   |   |   |
| CURRENT      LIABILITIES                              |   | $                 | 170                 |   |   | $ | 177 |   |
| LONG-TERM      DEBT—RELATED PARTY               |   |              | —   |   |   |   | 2,347 |   |
| INVESTMENT      IN AND EQUITY IN LOSSES OF AFFILIATES |   |              | 480,529             |   |   |   | 383,650 |   |
| COMMITMENTS      AND CONTINGENCIES                    |   |              | —   |   |   |   | —   |   |
| STOCKHOLDERS’      (DEFICIT) EQUITY             |   |              | (480,327            | ) |   |   | (351,685 | ) |
| Total      liabilities and stockholders’ equity |   | $                 | 372                 |   |   | $ | 34,489 |   |

----

|                                           |   | Year      Ended December 31,                         |                |
|------------------------------------------------|--------|------------------------------------------------------|---------------------|
|                                           |   |              2009 |                |   |              2008 |   |   |              2007 |   |
| Revenues                                  |   | $                                                    | —        |   |   | $  | —        |   |   | $ | —        |   |
| Operating      costs and expenses              |   |                                                 | 12,286              |   |   |   | 1,742 |   |   |   | 882 |   |
| Loss      from operations                      |   |                                                 | (12,286             | ) |   |   | (1,742 | ) |   |   | (882 | ) |
| Interest      expense, net                     |   |                                                 | (13                 | ) |   |   | (114 | ) |   |   | (13 | ) |
| Interest      income                           |   |                                                 | 406                 |   |   |   | 2,225 |   |   |   | 3,308 |   |
| Other      income                              |   |                                                 | —   |   |   |   | 234 |   |   |   | —   |   |
| Equity income      (losses) of affiliates |   |                                                 | 198,805             |   |   |   | (78,947 | ) |   |   | (51,365 | ) |
| Net income      (loss)                    |   | $                                                    | 186,912             |   |   | $ | (78,344 | ) |   | $ | (48,952 | ) |

----

|                                                      |   | Year      Ended December 31, |                |
|-----------------------------------------------------------|--------|------------------------------|---------------------|
|                                                      |   | 2009                         |                |   | 2008 |   |   | 2007 |   |
| NET      CASH USED IN OPERATING ACTIVITIES                |   | $                            | (10,411             | ) |   | $ | (1,707 | ) |   | $ | (621 | ) |
|                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                |   |                         |                |   |   |   |   |   |   |   |   |   |
| Iinvestment      in restricted cash and cash equivalents  |   |                         | —   |   |   |   | —   |   |   |   | (10,851 | ) |
| Investment      in restricted U.S. Treasury securities    |   |                         | —   |   |   |   | —   |   |   |   | (63,923 | ) |
| NET      CASH USED IN INVESTING ACTIVITIES                |   |                         | —   |   |   |   | —   |   |   |   | (74,774 | ) |
|                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                |   |                         |                |   |   |   |   |   |   |   |   |   |
| Distributions      received from Sabine Pass LNG, L.P.    |   |                         | 295,684             |   |   |   | —   |   |   |   | —   |   |
| Distributions      to owners                              |   |                         | (280,674            | ) |   |   | (45,824 | ) |   |   | (23,668 | ) |
| Use      of restricted cash and cash equivalents     |   |                         | 32,757              |   |   |   | 45,824 |   |   |   | —   |   |
| Special      rights adjustment                            |   |                         | (34,879             | ) |   |   | —   |   |   |   | —   |   |
| Repayment      of long-term note—affiliate          |   |                         | (2,467              | ) |   |   | —   |   |   |   | —   |   |
| Borrowings      under long-term note—affiliate      |   |                         | 114                 |   |   |   | 1,708 |   |   |   | 632 |   |
| Proceeds      from issuance of common units               |   |                         | —   |   |   |   | —   |   |   |   | 98,442 |   |
| Other                                                     |   |                         | —   |   |   |   | (3 | ) |   |   | (3 | ) |
| NET      CASH PROVIDED BY FINANCING ACTIVITIES            |   |                         | 10,535              |   |   |   | 1,705 |   |   |   | 75,403 |   |
|                                                      |   |                         |                |   |   |   |   |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |   |                         | 124                 |   |   |   | (2 | ) |   |   | 8 |   |
| CASH      AND CASH EQUIVALENTS—BEGINNING OF YEAR    |   |                         | 6                   |   |   |   | 8 |   |   |   | —   |   |
| CASH      AND CASH EQUIVALENTS—END OF YEAR          |   | $                            | 130                 |   |   | $ | 6 |   |   | $ | 8 |   |

----

|                                    |   | Year      Ended December 31, |    |
|-----------------------------------------|--------|------------------------------|---------|
|                                    |   | 2009                         |    |   | 2008 |   |   | 2007 |   |
|                                    |   | (in      thousands)          |
| Non-cash      capital contributions (1) |   | $                            | 198,805 |   |   | $ | (78,947 | ) |   | $ | (51,365 | ) |

----

| (1) | Amounts      represent equity gains (losses) of affiliates not funded by Cheniere      Energy Partners. |
|-----|---------------------------------------------------------------------------------------------------------|

----

|                              |                                                                                    |
|-----------------------------------|-----------------------------------------------------------------------------------------|
| CHENIERE ENERGY PARTNERS,    L.P. |
| By:                               | Cheniere      Energy Partners GP, LLC,its      general partner                          |
|                              |                                                                                    |
| By:                               | /s/    CHARIF SOUKI         |
|                              | Charif      SoukiChief      Executive Officer andChairman      of the Board             |   |

|   | Date:      February 25, 2010 |
|--------|------------------------------|

| Signature                                                           | Title                                                                                                 | Date                        |
|---------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-----------------------------|
|                                                                |                                                                                                  |                        |
| /s/    CHARIF SOUKI                             | Chief      Executive Officer & Chairman of the Board(Principal      Executive Officer)  | February 25,      2010 |
| Charif      Souki                                                   |
|                                                                |                                                                                                  |                        |
| /s/    R.      KEITH TEAGUE                     | President      and Chief Operating Officer,Director (Principal Operating Officer)      | February 25,      2010 |
| R.      Keith Teague                                                |
|                                                                |                                                                                                  |                        |
| /s/    Meg A. Gentle                            | Senior      Vice President & Chief Financial Officer,Director      (Principal Financial Officer)) | February 25,      2010 |
| Meg      A. Gentle                                                  |
|                                                                |                                                                                                  |                        |
| /s/    JERRY D. SMITH                           | Chief      Accounting Officer(Principal      Accounting Officer)                                      | February 25,      2010 |
| Jerry      D. Smith                                                 |
|                                                                |                                                                                                  |                        |
| /s/    JAMES D. BENNETT                    | Director                                                                                              | February 25,      2010 |
| James      D. Bennett                                               |
|                                                                |                                                                                                  |                        |
| /s/    Michael E. Bock                          | Director                                                                                              | February 25,      2010 |
| Michael      E. Bock                                                |                                                                                                  |                        |
|                                                                |                                                                                                  |                        |
| /s/    LON MCCAIN                          | Director                                                                                              | February 25,      2010 |
| Lon      McCain                                                     |                                                                                                  |                        |
|                                                                |                                                                                                  |                        |
| /s/    ROBERT J. SUTCLIFFE                 | Director                                                                                              | February 25,      2010 |
| Robert      J. Sutcliffe                                            |                                                                                                  |                        |
|                                                                |                                                                                                  |                        |
| /s/    ROBERT J. SUTCLIFFE                 | Director                                                                                              | February 25,      2010 |
| Robert      J. Sutcliffe                                            |                                                                                                  |                        |
|                                                                |                                                                                                  |                        |
|  /s/    WALTER L. WILLIAMS                 |  Director                                                                                        | February      25, 2010      |
| Walter      L. Williams                                             |                                                                                                  |                        |
|                                                                |                                                                                                  |                        |
|  /s/    Don A. Turkleson    | Director                                                                                              | February      25, 2010      |
| Don      A. Turkleson                                     |                                                                                                       |                             |

----