Document:

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                                                                    Exhibit 10.8

                     PARTNERSHIP INTEREST PURCHASE AGREEMENT

                                      among

                            CONTANGO SUNDANCE, INC.,

                               CONTANGO OIL & GAS,

                               CHENIERE LNG, INC.

                                       and

                              CHENIERE ENERGY, INC.

                            dated as of March 1, 2003

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                                TABLE OF CONTENTS

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                                                                       Page
<S>                                                                    <C>
1.   EXERCISE OF OPTION, PURCHASE AND SALE OF STOCK                       2
     1.1  Purchase of the Assigned Interest ........................      2
     1.2  Consideration ............................................      2
     1.3  Additional Provisions Related to the Consideration .......      2
     1.4  Security Agreement .......................................      3

2.   CLOSING .......................................................      3
     2.1  The Closing ..............................................      3
     2.2  Deliveries ...............................................      3

3.   REPRESENTATIONS AND WARRANTIES OF THE CHENIERE ENTITIES .......      3
     3.1  Due Organization .........................................      3
     3.2  Authorization ............................................      4
     3.3  Litigation and Administrative Proceedings ................      4
     3.4  Percentage Interests of the Company ......................      4

4.   REPRESENTATIONS OF CONTANGO ...................................      4
     4.1  Authorization ............................................      4
     4.2  Approvals ................................................      5
     4.3  Litigation and Administrative Proceedings ................      5
     4.4  Investigation ............................................      5
     4.5  Investment Representations ...............................      6

5.   CERTAIN COVENANTS OF THE CONTANGO ENTITIES ....................      6
     5.1  Confidential Information .................................      6
     5.2  Further Action; Reasonable Commercial Efforts ............      7
     5.3  Partnership Agreement ....................................      7
     5.4  Assigned Interest ........................................      7
     5.5  Return of Funds ..........................................      9

6.   INDEMNIFICATION ...............................................      9
     6.1  Survival .................................................      9
     6.2  Indemnification by Cheniere ..............................      9
     6.3  Indemnification by Contango ..............................      9
     6.4  Indemnification Procedures ...............................     10

7.   ASSIGNMENT AND OFFSET .........................................     11
     7.1  Right of First Refusal ...................................     11
     7.2  Offset Right .............................................     12
     7.3  Put Option ...............................................     12
     7.4  Equitable Relief .........................................     12
</TABLE>

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                                TABLE OF CONTENTS
                                  (continued)

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8.   CERTAIN DEFINITIONS ...........................................     12

9.   GENERAL .......................................................     13
     9.1   Cooperation .............................................     13
     9.2   Designee; Successors and Assigns ........................     13
     9.3   Entire Agreement ........................................     13
     9.4   Counterparts ............................................     13
     9.5   Brokers and Agents ......................................     13
     9.6   Payment of Expenses .....................................     14
     9.7   Notices .................................................     14
     9.8   Governing Law ...........................................     14
     9.9   Amendment to Partnership Agreement ......................     14
     9.10  Exercise of Rights and Remedies .........................     15
     9.11  No Strict Construction ..................................     15
     9.12  Time ....................................................     15
     9.13  Survival ................................................     15
     9.14  Reformation and Severability ............................     15
</TABLE>

                                       ii

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                              PARTNERSHIP INTEREST
                               PURCHASE AGREEMENT

     THIS PARTNERSHIP INTEREST PURCHASE AGREEMENT (the "Agreement") is made as
of the 1st day of March, 2003, among Contango Sundance, Inc., a Delaware
corporation ("Contango"), Contango Oil & Gas, a Delaware corporation and an
affiliate of Contango ("O&G" and collectively with Contango, the "Contango
Entities"), Cheniere LNG, Inc, a Delaware corporation ("Cheniere LNG"), and
Cheniere Energy, Inc., a Delaware corporation ("Cheniere" and collectively with
Cheniere LNG, the "Cheniere Entities").

     WHEREAS, Cheniere LNG has entered into an Amended and Restated Limited
Partnership Agreement ("Partnership Agreement") for Freeport LNG Development,
L.P., a Delaware limited partnership (the "Partnership") pursuant to which
Cheniere LNG received a forty percent (40%) limited partnership interest in the
Partnership and Freeport LNG Investments, LLC (together with its successors and
assigns under the Partnership Agreement, "Investments") received a sixty-percent
(60%) limited partnership interest in the Partnership; and

     WHEREAS, Contango and Cheniere entered into that certain Option Purchase
Agreement dated June 4, 2002 (as amended by the Extension and Amendment to the
Option Agreement dated December 15, 2002, the "Option Agreement") pursuant to
which Contango has the right and option to purchase from Cheniere (the "Option")
a ten percent (10%) interest in the Partnership; and

     WHEREAS, in connection with the execution of the Option Purchase Agreement,
Cheniere delivered to O&G a Secured Promissory Note in the initial principal
amount of $750,000 (the "Note") and a Security Agreement dated June 4, 2002
securing such Note (the "Security Agreement"); and

     WHEREAS, Contango has delivered notice of the exercise of such Option prior
to the First Option Expiration Date (as defined in the Option Agreement)
pursuant to which it notified Cheniere of its intent to purchase the interest in
the Partnership defined in Section 5.4 of this Agreement as the "Assigned
Interest;"

     WHEREAS, it is an integral part of this Agreement that O&G deliver the Note
and terminate the Security Agreement at the Closing;

     WHEREAS, O&G has determined that its execution, delivery and performance of
this Agreement directly benefits, and are in the best interest of, O&G; and

     WHEREAS, Contango wishes to exercise the Option to purchase the Assigned
Interest, and Cheniere LNG wishes to sell (and Cheniere wishes to cause Cheniere
LNG to sell) the Assigned Interest to Contango.

     NOW, THEREFORE, in consideration of the premises and the representations,
warranties, covenants and agreements set forth below, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

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1.   EXERCISE OF OPTION, PURCHASE AND SALE OF STOCK

     1.1  Purchase of the Assigned Interest. Subject to the terms and conditions
     of this Agreement, Cheniere LNG agrees to sell, transfer and assign to
     Contango, and Contango agrees to purchase from Cheniere LNG, the Assigned
     Interest in the Partnership.

     1.2  Consideration. In consideration of the sale, transfer and delivery of
     the Assigned Interest, Contango shall deliver the following (the "Purchase
     Price"):

          (a)  at Closing, $750,000 in immediately available funds ("Closing
          Amount");

          (b)  on the fifteenth day of each calendar month starting on June 15,
          2003 and ending on April 15, 2004, $100,000 in immediately available
          funds (subject to earlier payment of such amounts in accordance with
          (d) below);

          (c)  on May 15, 2004, $83,333 in immediately available funds (subject
          to earlier payment of such amount in accordance with (d) below); and

          (d)  on the later to occur of (i) the date 10 days after Contango has
          received written notice of Project Approval (as defined in the
          Partnership Agreement) which notice may occur prior to the actual
          approval and (ii) the date on which Project Approval (as defined in
          the Partnership Agreement) is obtained, $400,000 (plus any unpaid
          portion of the amounts described in (b) and (c) above in the event
          that Project Approval is obtained prior to May 15, 2004) in
          immediately available funds.

     The amounts described in (b), (c) and (d) above are collectively referred
to herein as the "Additional Amount."

     In addition, Contango assumes the obligations set forth in the definition
of Assigned Interest under Section 5.4.

     1.3  Additional Provisions Related to the Consideration.

          (a)  Contango may surrender and deliver the Note to satisfy in full
          its obligation related to the Closing Amount. Contango and O&G each
          hereby agree that upon the consummation of the transactions
          contemplated by this Agreement, neither Contango nor O&G is entitled
          to any further payments of principal or interest under the Note, that
          Cheniere has satisfied all obligations to Contango and O&G under the
          Note, and that the Note is discharged in full and is of no further
          force or effect. Upon execution of this Agreement, Contango will
          deliver or cause to be delivered to Cheniere the original Note marked
          "CANCELED."

          (b)  The Parties agree that effective upon the Closing, the Security
          Agreement and the security interest created thereby is terminated and
          O&G and Contango release all of the property constituting collateral
          thereunder.

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     1.4 Security Agreement. Contango's obligation to pay the Additional Amount
     is secured by a security interest in the Assigned Interest and Contango
     shall execute, simultaneously with the Closing hereunder, a Security and
     Pledge Agreement of even date herewith between Contango and Cheniere LNG
     setting forth the terms and conditions of such security interest and
     specifying certain remedies.

2.   CLOSING

     2.1 The Closing. The transactions contemplated by this Agreement (the
     "Closing") shall take place at 10:00 a.m., Houston time, at the offices of
     Andrews & Kurth L.L.P., 600 Travis, Suite 4200, Houston, Texas 77002, on
     March 1, 2003 (the "Closing Date").

     2.2 Deliveries. In addition to the other things required to be done hereby,
     at the Closing, (a) O&G and/or Contango shall deliver to the Cheniere
     Entities, if not previously delivered to the Cheniere Entities, (i) the
     Note, (ii) a Security and Pledge Agreement, and (iii) all certificates and
     such other instruments and documents required pursuant hereto to be
     delivered by or on behalf of each of the Contango Entities at or prior to
     the Closing, or reasonably requested by Cheniere in connection herewith and
     (b) the Cheniere Entities shall deliver to Contango (i) a warrant to
     purchase 300,000 shares of Cheniere common stock at an exercise price of
     $2.50 per share in the form attached as Exhibit 2.2(b)(i), (ii) a joinder
     to the Amended and Restated Partnership Agreement, duly executed by the
     parties thereto, admitting Contango as a substituted limited partner (as
     contemplated by Article XVII of the Partnership Agreement) in the
     partnership, which joinder shall be in the form attached hereto as Exhibit
     2.2(b)(ii) and (iii) all certificates and such other instruments and
     documents required pursuant hereto to be delivered by or on behalf of each
     of the Cheniere Entities at or prior to the Closing, or reasonably
     requested by the Contango Entities in connection herewith.

3.   REPRESENTATIONS AND WARRANTIES OF THE CHENIERE ENTITIES

     Each of the Cheniere Entities jointly and severally represents and warrants
to Contango that each of the following representations and warranties is true as
of the date of this Agreement.

     3.1 Due Organization. The Partnership is a limited partnership duly
     organized and validly existing under the laws of Delaware, and to
     Cheniere's Knowledge, is duly authorized, qualified and licensed under all
     applicable laws, regulations, ordinances and orders of Government
     Authorities to own its properties and assets and to carry on its business
     in the places and in the manner as it is now conducted. True and correct
     copies of the Partnership's Certificate of Limited Partnership, as amended
     and Amended and Restated Limited Partnership Agreement are attached to
     Exhibit 3.1. Each of the Cheniere Entities is a corporation duly organized,
     validly existing and in good standing under the laws of Delaware and is
     duly authorized, qualified and licensed under all applicable laws,
     regulations, ordinances and orders of Government Authorities to own its
     properties and assets and to carry on its business in the places and in the
     manner as it is now conducted, except as disclosed on Schedule 3.1.

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     3.2  Authorization. Each of the Cheniere Entities has full legal right,
     power and authority to enter into this Agreement and any agreement,
     document or certificate contemplated hereby and to perform its obligations
     hereunder and to consummate the transactions contemplated hereby. The
     execution, delivery and performance of this Agreement and the consummation
     of the transactions contemplated hereby do not and will not (i) violate or
     conflict with any provision of any of the Cheniere Entities' Certificate of
     Incorporation or Bylaws, (ii) violate or conflict with any provision of, or
     be an event that is a violation of, or result in the modification,
     cancellation or acceleration of, any obligation under, or result in the
     imposition or creation of any Encumbrances upon any of the assets of the
     Cheniere Entities or, to Cheniere's Knowledge, the Partnership pursuant to
     any mortgage, lien, lease, agreement or instrument to which any of the
     Cheniere Entities or, to Cheniere's Knowledge, the Partnership is a party
     or by which any of the Cheniere Entities or, to Cheniere's Knowledge, the
     Partnership, is bound, (iii) violate or conflict with any Legal Requirement
     applicable to (x) any of the Cheniere Entities or, to Cheniere's Knowledge,
     the Partnership or (y) any of the Cheniere Entities' properties or assets
     or any other material restriction of any kind or character to which it or
     they are subject or, to the Cheniere's Knowledge, any of the Partnership's
     properties or assets or any other material restriction of any kind or
     character to which it or they are subject, or (iv) require any
     authorization, consent, order, permit or approval of, or notice to, or
     filing, registration or qualification with, any Government Authority and,
     except for the general partner of the Partnership, any other Person. This
     Agreement has been duly executed and delivered by each of the Cheniere
     Entities and, assuming the due execution and delivery hereof by Contango
     and the consent of the general partner of the Partnership, this Agreement
     constitutes the legal, valid and binding obligation of the Cheniere
     Entities.

     3.4  Litigation and Administrative Proceedings. There is no litigation,
     proceeding or investigation pending or, to the knowledge of Cheniere,
     threatened against the Cheniere Entities in any federal, state or local
     court, or before any administrative agency, that seeks to enjoin or
     prohibit, or otherwise questions the validity of, any action taken or to be
     taken pursuant to or in connection with this Agreement.

     3.5  Percentage Interests of the Company. Prior to the consummation of the
     transactions contemplated by this Agreement, Cheniere LNG owns a forty
     percent limited partnership interest in the Partnership and such interest
     is free and clear of all Encumbrances. Upon consummation of this Agreement
     in accordance with its terms, Contango will acquire good and valid title in
     the Assigned Interest, free and clear of all Encumbrances. As of the
     effective date of the Partnership Agreement, Cheniere LNG's capital account
     in the Partnership was $9,333,333.

4.   REPRESENTATIONS OF CONTANGO

     Each of the Contango Entities, jointly and severally represents and
warrants to Cheniere that each of the following representations and warranties
is true as of the date of this Agreement:

     4.1  Authorization. Contango is a corporation duly organized, validly
     existing and in good standing under the laws of Delaware, and is duly
     authorized, qualified and licensed

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     under all applicable laws, regulations, ordinances, and orders of
     Governmental Authorities to own its properties and assets and carry on its
     business in places and in the manner as it is now conducted. O&G is a
     corporation duly organized, validly existing and in good standing under the
     laws of Delaware, and is duly authorized, qualified and licensed under all
     applicable laws, regulations, ordinances, and orders of Governmental
     Authorities to own its properties and assets and carry on its business in
     places and in the manner as it is now conducted. Each of the Contango
     Entities has full legal right, power and authority to enter into this
     Agreement and any agreement, document or certificate contemplated hereby
     and to perform its obligations hereunder and to consummate the transactions
     contemplated hereby. The execution, delivery and performance of this
     Agreement and the consummation of the transactions contemplated hereby do
     not and will not (i) violate or conflict with any provision of, or be an
     event that is (or with the passage of time will result in) a violation of,
     or result in the modification, cancellation or acceleration of (whether
     after the giving of notice or lapse of time or both), any obligation under,
     or result in the imposition or creation of any Encumbrances upon any of the
     assets of Contango or O&G pursuant to any mortgage, lien, lease, agreement
     or instrument to which Contango or O&G is a party or by which Contango or
     O&G is bound, (ii) violate or conflict with any Legal Requirement
     applicable to Contango or O&G or any of their respective properties or
     assets or any other material restriction of any kind or character to which
     it or they are subject, or (iii) require any authorization, consent, order,
     permit or approval of, or notice to, or filing, registration or
     qualification with, any Government Authority or any other Person. This
     Agreement has been duly executed and delivered by Contango and O&G and,
     assuming the due execution and delivery hereof by the Cheniere Entities,
     this Agreement constitutes the legal, valid and binding obligation of
     Contango and O&G.

     4.2  Approvals. No authorization, consent or approval of, or registration
     or filing with, any Governmental Authority or any other Person is or was
     required to be obtained or made by Contango or O&G in connection with the
     execution, delivery or performance of this Agreement.

     4.3  Litigation and Administrative Proceedings. There is no litigation,
     proceeding or investigation pending or, to the knowledge of Contango or
     O&G, threatened against Contango in any federal, state or local court, or
     before any administrative agency, that seeks to enjoin or prohibit, or
     otherwise questions the validity of, any action taken or to be taken
     pursuant to or in connection with this Agreement.

     4.4  Investigation. Contango is acquiring the Assigned Interest based on
     its own investigation and for investment for its own account, and not with
     the view to, or for resale in connection with, any distribution of any part
     thereof, and it has no present intention of selling, granting any
     participation in or otherwise distributing the Assigned Interest. Contango
     has received and reviewed the Partnership Agreement. Contango understands
     that the Assigned Interest to be purchased has not been registered under
     the Securities Act of 1933, as amended, or applicable state and other
     securities laws by reason of a specific exemption from the registration
     provisions of the Securities Act and applicable state and other securities
     laws, the availability of which depends upon, among

                                       5

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     other things, the bona fide nature of the investment intent and the
     accuracy of Contango's and O&G's representations as expressed herein.

     4.5  Investment Representations.

          (a)  The Assigned Interest is being acquired by Contango for
          Contango's own account and for investment purposes only and not with a
          view to any resale or distribution thereof, in whole or in part, to
          others, and Contango is not participating, directly or indirectly, in
          a distribution of the Assigned Interest and will not take, or cause to
          be taken, any action that would cause Contango to be deemed an
          "underwriter" of such Assigned Interest as defined in Section 2(11) of
          the Securities Act of 1933, as amended.

          (b)  Contango has had access to all materials, books, records,
          documents, and information relating to the Partnership and has been
          able to verify the accuracy of, and to supplement, the information
          contained therein.

          (c)  Contango has had an opportunity to ask questions of, and receive
          satisfactory answers from, representatives of Cheniere, Cheniere LNG
          and/or the Partnership concerning all material aspects of the
          Partnership and its proposed business, and any request for such
          information has been fully complied with to the extent Cheniere,
          Cheniere LNG or the Partnership possesses such information or can
          acquire it without unreasonable effort or expense.

          (d)  Contango is an "accredited investor" within the meaning of Rule
          501 of the Securities Act of 1933, as amended.

          (e)  Contango is an investor who has such knowledge and experience in
          financial and business matters as to be capable of evaluating the
          merits and risks of an investment in the Partnership based upon (i)
          the information furnished by Cheniere, Cheniere LNG and the
          Partnership; (ii) Contango's personal knowledge of the business and
          affairs of the Partnership; (iii) the records, files, and plans of the
          Partnership to which Contango has had full access; (iv) such
          additional information as Contango may have requested and has received
          from Cheniere, Cheniere LNG or the Partnership; and (v) the
          independent inquiries and investigations undertaken by Contango.

          (f)  No person has made any direct or indirect representation or
          warranty of any kind to Contango with respect to the economic return
          which may accrue to Contango. Contango has consulted with its own
          advisors with respect to an investment in the Partnership.

5.   CERTAIN COVENANTS OF THE CONTANGO ENTITIES

     5.1  Confidential Information. Contango and O&G hereby agree that, except
     as required by law, they will not disclose any confidential information to
     any Person for any purpose whatsoever, including any information related to
     the Partnership, this Agreement or the terms hereof. In addition, Contango
     hereby acknowledges that upon the

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     consummation of the transactions contemplated by this Agreement, Contango
     shall become bound by the obligations of a limited partner as set froth in
     the Partnership Agreement including all provisions related to
     confidentiality. Cheniere shall be entitled to an injunction restraining
     Contango and/or O&G from disclosing, in whole or in part, any confidential
     information. Notwithstanding the foregoing, each of the Cheniere Entities
     acknowledges that in connection with the Closing hereunder, Contango shall
     issue a press release (the form of which shall be provided in advance to
     Cheniere) announcing the purchase of the Assigned Interest.

     5.2  Further Action; Reasonable Commercial Efforts. Subject to the terms
     and conditions hereof, each party hereto shall use its reasonable
     commercial efforts to take, or to cause to be taken, all appropriate
     action, and to do, or to cause to be done, all things necessary, proper or
     advisable under applicable laws to consummate and make effective the
     transactions contemplated hereby.

     5.3  Partnership Agreement. Effective upon the Closing, Contango shall join
     in the execution of the Partnership Agreement (including the execution of
     the attached joinder) and hereby agrees to execute and deliver a
     counterpart of the Partnership Agreement and any other documents,
     agreements or certificates requested by the general partner of the
     Partnership. Contango hereby agrees to be bound by and comply with all the
     provisions of such Partnership Agreement applicable to it including, but
     not limited to, any provision that limits or restricts the assignment or
     transfer of the Assigned Interest.

     5.4  Assigned Interest. The parties to this Agreement agree that the
     Assigned Interest consists of the following rights and obligations:

          (a)  Distributions. The Assigned Interest shall be entitled to a 10%
          Percentage Interest (as defined in the Partnership Agreement) with
          respect to all distributions made pursuant to Sections 5.1(b)(v) and
          5.2 of the Partnership Agreement and shall be entitled to
          distributions in accordance with its Capital Account (as defined in
          the Partnership Agreement) or its 10% Percentage Interest, as the case
          may be, in accordance with the provisions of Section 5.4 of the
          Partnership Agreement. The Assigned Interest shall have no right to
          any distributions under any other provisions of the Partnership
          Agreement including under Sections 3.4(b), 5.1(a) or 5.3 of the
          Partnership Agreement.

          (b)  Allocation of Profits and Losses. The Assigned Interest shall be
          allocated the amount of Profit or Loss (as such terms are defined in
          the Partnership Agreement) allocable to a Limited Partner with a 10%
          Percentage Interest under the provisions of Article 4 of the
          Partnership Agreement.

          (c)  Capital Account. The Assigned Interest shall have a Capital
          Account as of the Closing Date of $2,333,333, equal to 25% of the
          Capital Account of Cheniere LNG immediately prior to the Closing, such
          Capital Account to be adjusted thereafter in accordance with Section
          4.1 of the Partnership Agreement.

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          (d)  Obligations of Contango. As the holder of the Assigned Interest,
          Contango shall have all of the obligations of a Limited Partner of the
          Partnership with a 10% Percentage Interest, except to the extent
          otherwise expressly limited pursuant to this Section 5.4.

          (e)  Rights of Contango. As the holder of the Assigned Interest,
          Contango shall have the rights to distributions, allocations of
          Profits and Losses, and Capital Account under the Partnership
          Agreement set forth in this Section 5.4 and shall have all other
          rights of a Substituted Limited Partner (as contemplated by Article
          XVII of the Partnership Agreement) of the Partnership with a 10%
          Percentage Interest except the following:

               (i)    Contango has, and shall have, no right to any distribution
               under Sections 3.4(b), 5.1(a) or 5.3 of the Partnership
               Agreement;

               (ii)   Contango has, and shall have, no approval rights pursuant
               to Section 10.2 of the Partnership Agreement;

               (iii)  Contango has, and shall have, no right to consultation
               pursuant to Section 10.2(c) of the Partnership Agreement;

               (iv)   Contango has, and shall have, no rights under Section
               10.10 of the Partnership Agreement;

               (v)    Contango has, and shall have, no rights under Section 11.1
               of the Partnership Agreement;

               (vi)   Contango has, and shall have, no rights under Section
               12.2(u) of the Partnership Agreement;

               (vii)  Contango has, and shall have, no approval rights under
               Section 14.3 of the Partnership Agreement;

               (viii) Contango has, and shall have, no rights under Section
               14.5(d) or (e) of the Partnership Agreement;

               (ix)   Contango has, and shall have, no rights under Section 14.6
               of the Partnership Agreement; and

               (x)    Contango has, and shall have, no rights under Section 22.1
               of the Partnership Agreement.

          (f)  Notwithstanding anything to the contrary contained herein,
          Contango shall not be responsible for any obligation of Cheniere LNG
          (i) under Section 6.2(g)(iii) of the Partnership Agreement and (ii) to
          pay the Reimbursement Amount under Section 16.2 of the Partnership
          Agreement.

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<PAGE>

     5.5  Return of Funds. Contango hereby agrees that in the event it receives
     any funds from the Partnership that it is not entitled to receive, but to
     which Cheniere LNG is entitled, whether distributed under Section 5.1, 5.3
     or as a result of accelerated payments under Section 3.4(b) or otherwise,
     then Contango will receive such funds in trust for the benefit of Cheniere
     LNG and shall immediately assign and deliver such amounts to Cheniere LNG.

6.   INDEMNIFICATION

     6.1  Survival. The representations, warranties, covenants and agreements of
     the parties made in this Agreement shall survive (and not be affected in
     any respect by) the Closing. Notwithstanding the foregoing, the
     representations and warranties and the right of indemnification with
     respect to each representation and warranty contained in this Agreement
     shall terminate on the date (the "Survival Date") occurring sixty (60) days
     after the second (2nd) anniversary of the Closing Date. The right to
     indemnification with respect to such representations and warranties, and
     the liability of either party with respect thereto, shall not terminate
     with respect to any claim, whether or not fixed as to liability or
     liquidated as to amount, with respect to which such party has been given
     written notice prior to the Survival Date.

     6.2  Indemnification by Cheniere. The Cheniere Entities shall indemnify,
     defend, protect and hold harmless Contango and its respective successors
     and assigns and its directors, officers, employees, attorneys, agents and
     affiliates (each a "Contango Indemnified Person"), at all times from and
     after the date of this Agreement (subject to any limitation on the survival
     of representations and warranties set forth in Section 6.1) against all
     losses, claims, damages, actions, suits, proceedings, demands, assessments,
     adjustments, costs and expenses ("Losses") (including specifically, but
     without limitation, reasonable attorneys' fees and expenses of
     investigation ("Legal Expenses")) based upon, resulting from or arising out
     of (a) any inaccuracy or breach of any representation or warranty of the
     Cheniere Entities contained in this Agreement and (b) the breach by the
     Cheniere Entities, or the failure by the Cheniere Entities to observe, any
     of the covenants or other agreements contained in this Agreement.

     6.3  Indemnification by Contango. Contango shall indemnify, defend, protect
     and hold harmless Cheniere, its successors and assigns and its directors,
     officers, employees, attorneys, agents and affiliates (each a "Cheniere
     Indemnified Person") at all times from and after the date of this Agreement
     (subject to any limitation on the survival of representations and
     warranties set forth in Section 6.1) against all Losses (including
     specifically, but without limitation, Legal Expenses) based upon, resulting
     from or arising out of (a) any inaccuracy or breach of any representation
     or warranty of Contango contained in this Agreement, and (b) the breach by
     Contango of, or the failure by Contango to observe, any of its covenants or
     other agreements contained in or made pursuant to this Agreement.

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     6.4  Indemnification Procedures.

          (a)  Promptly after receipt by any person entitled to indemnification
          under Section 6.2 or 6.3 (an "indemnified party") of notice of the
          commencement of any action, suit or proceeding by a person not a party
          to this Agreement in respect of which the indemnified party will seek
          indemnification hereunder (a "Third Party Action"), the indemnified
          party shall notify the person that is obligated to provide such
          indemnification (the "indemnifying party") thereof in writing, but any
          failure to so notify the indemnifying party shall not relieve it from
          any liability that it may have to the indemnified party under Section
          6.2 or 6.3, except to the extent that the indemnifying party is
          prejudiced by the failure to give such notice. The indemnifying party
          shall be entitled to participate in the defense of such Third Party
          Action and to assume control of such defense (including settlement of
          such Third Party Action) with counsel reasonably satisfactory to such
          indemnified party; provided, however, that:

               (i)   the indemnified party shall be entitled to participate in
               the defense of such Third Party Action and to employ counsel at
               its own expense (which shall not constitute Legal Expenses for
               purposes of this Agreement) to assist in the handling of such
               Third Party Action;

               (ii)  the indemnifying party shall obtain the prior written
               approval of the indemnified party before entering into any
               settlement of such Third Party Action or ceasing to defend
               against such Third Party Action, if pursuant to or as a result of
               such settlement or cessation, injunctive or other equitable
               relief would be imposed against the indemnified party or the
               indemnified party would be materially adversely affected thereby;

               (iii) no indemnifying party shall consent to the entry of any
               judgment or enter into any settlement that does not include as an
               unconditional term thereof the giving by each claimant or
               plaintiff to each indemnified party of a release from all
               liability in respect of such Third Party Action; and

               (iv)  the indemnifying party shall not be entitled to control the
               defense of any Third Party Action unless the indemnifying party
               confirms in writing its assumption of such defense and continues
               to pursue the defense reasonably and in good faith.

     After written notice by the indemnifying party to the indemnified party of
its election to assume control of the defense of any such Third Party Action in
accordance with the foregoing, (i) the indemnifying party shall not be liable to
such indemnified party hereunder for any Legal Expenses subsequently incurred by
such indemnified party attributable to defending against such Third Party
Action, and (ii) as long as the indemnifying party is reasonably contesting such
Third Party Action in good faith, the indemnified party shall not admit any
liability with respect to, or settle, compromise or discharge the claim
underlying, such Third Party Action without the indemnifying party's prior
written consent. If the indemnifying party does not assume control of the
defense of such Third Party Action in accordance with this Section 6.4, the
indemnified party

                                       10

<PAGE>

shall have the right to defend and/or settle such Third Party Action in such
manner as it may deem reasonably appropriate at the cost and expense of the
indemnifying party provided that the indemnifying party has received written
notice of the proposed settlement and the terms thereof, and the indemnifying
party will promptly reimburse the indemnified party therefor in accordance with
this Section 6. The reimbursement of fees, costs and expenses required by this
Section 6 shall be made by periodic payments during the course of the
investigation or defense, as and when bills are received or expenses incurred.

          (b)  If an indemnified party becomes entitled to any indemnification
          from an indemnifying party pursuant to this Agreement, such
          indemnification payment shall be made in cash upon demand.

          (c)  If an indemnified party has actual knowledge of any facts or
          circumstances other than the commencement of a Third Party Action
          which cause in good faith it to believe that it is entitled to
          indemnification under this Section 6, then such indemnified party
          shall promptly give the indemnifying party notice thereof in writing,
          but any failure to so notify the indemnifying party shall not relieve
          it from any liability that it may have to the indemnified party under
          Section 6.2 or 6.3, as the case may be, except to the extent that the
          indemnifying party is prejudiced by the failure to give such notice.

          (d)  The remedies provided in this Section 6 shall be the exclusive
          remedy for monetary damages (whether at law or in equity) with respect
          to matters subject to indemnification under Section 6.2(a) or Section
          6.3(a) hereof.

7.   ASSIGNMENT AND OFFSET

     7.1  Right of First Refusal. In the event Contango (or its permitted
     transferees or assigns), proposes to or does attempt to transfer, assign,
     distribute, pledge, hypothecate, encumber or otherwise dispose of
     ("Transfer") all or any part of the Assigned Interest ("Offered Interest")
     to any other partner in the Partnership or any affiliate of any partner of
     the Partnership, the Offered Interest shall be offered for a purchase price
     payable entirely in cash and shall first be offered for sale to Cheniere in
     accordance with this Section 7.1. Contango shall deliver a notice to
     Cheniere (the "Offer Notice") containing a description of the proposed
     transaction and the terms thereof, including a description of the Interest
     being sold and such Offer Notice shall contain an offer to sell to Cheniere
     the Offered Interest. Such offer to sell shall contain the same terms and
     conditions and shall be for the same consideration as described in the
     Offer Notice. For a period of 30 business days after such Offer Notice is
     received by Cheniere, Cheniere may, by notice to Contango accept the offer
     to acquire such Offered Interest in whole but not in part. Such acceptance
     shall specify the proposed date for closing such acquisition, which date
     shall not be later than 90 days from the date the notice of acceptance is
     sent to Contango. In the event that Cheniere does not agree to purchase the
     Offered Interest, Contango shall have the right to proceed with the sale or
     transfer on the terms specified in the Offer Notice; provided, however,
     that if Contango does not consummate such sale or transfer within 180 days
     after the date of the Offer Notice or proposes to consummate the
     transaction on terms that differ in any material respect more favorable to
     the transferee

                                       11

<PAGE>

     from the terms set forth in the Offer Notice, the right of first refusal
     contemplated by this Section 7.1 shall again be applicable. In the event
     Contango (or its permitted transferees or assigns) proposes to Transfer all
     or any part of the Assigned Interest to any other Person, Contango will
     notify Cheniere at least 30 days prior to consummating a transfer of such
     portion of the Assigned Interest.

     7.2 Offset Right. In the event Contango fails to pay any Additional Amount
     when due, Cheniere LNG shall have the right to require Contango to reassign
     to Cheniere LNG, and Contango will transfer to Cheniere LNG, all right,
     title and interest in and to all or a portion of the Assigned Interest in
     satisfaction of Contango's obligation to pay the Additional Amount. The
     amount of such offset shall be equal to (A) Contango's Percentage Interest
     (as defined in the Partnership Agreement) multiplied by (B) a ratio, the
     numerator of which shall be the Additional Amount not timely paid, and the
     denominator of which shall be (i) $2,333,333 multiplied by (ii) 0.9, as
     follows:

     (Contango's Percentage Interest)   X   $(Additional Amount not timely paid)
     --------------------------------       ------------------------------------
                    1                                ($2,333,333)(0.9)

     Contango will take such actions and do all things necessary, proper or
     advisable in order to effect the transactions contemplated by this Section
     7.2.

     7.3 Put Option. In the event that Investments exercises its right to
     withdraw from the Partnership prior to March 31, 2003 pursuant to Section
     16.2 of the Partnership Agreement, Contango shall have the right to
     transfer the Assigned Interest to Cheniere LNG in exchange for the Closing
     Amount in the form of a promissory note from Cheniere identical to the
     existing Note and the execution of a security agreement substantially
     identical to the existing Security Agreement.

     7.4 Equitable Relief. The parties hereto agree that legal remedies may be
     inadequate to enforce the provisions of this Agreement including this
     Article VII and equitable relief, including specific performance and
     injunctive relief, may be used to enforce the provisions of this Agreement.

8.   CERTAIN DEFINITIONS

     "Affiliate" (whether or not capitalized) shall mean, with respect to any
person, any other person that directly, or through one or more intermediaries,
controls or is controlled by or is under common control with such first person.
As used in this definition, "control" shall mean possession, directly or
indirectly, of power to direct or cause the direction of management or policies
(whether through ownership of securities or other ownership interest, by
contract or otherwise).

     "Business Day" means each day other than a Saturday, a Sunday, a legal
holiday or a day on which commercial banks are authorized or required to be
closed in Houston, Texas.

     "Encumbrances" shall mean mortgages, liens, pledges, encumbrances (legal or
equitable), claims, charges, security interests, covenants, conditions, voting
and other

                                       12

<PAGE>

restrictions, rights-of-way, easements, options, encroachments, rights of others
and any other matters affecting title, except, in the case of the Assigned
Interest, for restrictions on the sale or other disposition thereof imposed by
federal or state securities laws.

     "Government Authority" shall mean any government or state (or any
subdivision thereof), whether domestic, foreign or multinational, or any agency,
authority, bureau, commission, department or similar body or instrumentality
thereof, or any government court or tribunal.

     "Knowledge" shall mean facts that are actually known by any officer or
director of the applicable party (without any duty to investigate).

     "Legal Requirement" shall mean any law, statute, ordinance, code, rule,
regulation, standard, judgment, decree, writ, ruling, arbitration award,
injunction, order or other requirement of any Government Authority.

     "Person" (whether or not capitalized) shall mean and include an individual,
corporation, company, limited liability company, limited liability partnership,
partnership, joint venture, association, trust, and other unincorporated
organization or entity including any Government Authority.

9.   GENERAL

     9.1  Cooperation. Cheniere and Contango shall each deliver or cause to be
     delivered to the other on the Closing Date, and at such other times and
     places as shall be reasonably agreed to, such additional instruments as the
     other may reasonably request for the purpose of carrying out this
     Agreement.

     9.2  Designee; Successors and Assigns. This Agreement and the rights of the
     parties hereunder shall be binding upon and shall inure to the benefit of
     the parties hereto and their respective successors and permitted assigns.

     9.3  Entire Agreement. This Agreement (including the Exhibits attached
     hereto and the Schedules delivered pursuant hereto) and the other writings
     specifically identified herein or contemplated hereby contain the entire
     agreement and understanding between the Cheniere Entities and the Contango
     Entities with respect to the transactions contemplated herein and supersede
     any prior agreement and understanding relating to the subject matter of
     this Agreement. This Agreement may be modified or amended only by a written
     instrument executed by the Contango Entities and the Cheniere Entities
     acting through their respective duly authorized officers.

     9.4  Counterparts. This Agreement may be executed simultaneously in two or
     more counterparts, each of which shall be deemed an original and all of
     which together shall constitute but one and the same instrument.

     9.5  Brokers and Agents. Each party represents and warrants that it
     employed no broker or agent in connection with this transaction and agrees
     to indemnify the other

                                       13

<PAGE>

     against all loss, cost, damages or expense arising out of claims for fees
     or commission of brokers employed or alleged to have been employed by such
     indemnifying party.

     9.6  Payment of Expenses. Each of the parties hereto shall pay all its own
     costs and expenses incurred in connection with this Agreement and the
     transactions contemplated hereby. Any sales, use, excise, value added,
     business, goods and services, transfer, stamp, recording, documentary,
     registration, conveyancing or similar taxes, duties or other expenses
     related to the transactions contemplated by this Agreement, applicable to
     the transfer of the Assigned Interest shall be borne by Contango. Each
     party shall use commercially reasonable efforts to avail itself of any
     available exemptions from any such taxes, and to cooperate with the other
     party in providing any information and documentation that may be necessary
     to obtain such exemptions.

     9.7  Notices. All notices of communication required or permitted hereunder
     shall be in writing and may be given by depositing the same in United
     States mail, addressed to the party to be notified, postage prepaid and
     registered or certified with return receipt requested, or by delivering the
     same in person.

          (a) If to the Cheniere Entities, addressed to:

                      Cheniere Energy, Inc.
                      333 Clay Street, Suite 3400
                      Houston, Texas 77002
                      Attention:
                      Facsimile No.:

          with a copy to:

                      Andrews & Kurth L.L.P.
                      600 Travis, Suite 4200
                      Houston, Texas 77002
                      Attn: Michael Overman
                      (713) 220-4734 - Telephone
                      (713) 220-4285 -Facsimile

          (b) If to the Contango Entities, addressed to:

                      Contango Sundance, Inc.
                      3700 Buffalo Speedway, Suite 960
                      Houston, Texas 77098
                      Attention: Kenneth R. Peak
                      Facsimile No.: 713-960-1065

     9.8  Governing Law. This Agreement shall be construed in accordance with
     the laws of the State of Texas.

     9.9  Amendment to Partnership Agreement. Cheniere LNG will not (and will
     cause its successors and assigns under the Partnership not to) approve or
     consent to any

                                       14

<PAGE>

     amendment to, or waiver under, the Partnership Agreement without the
     consent of Contango if such amendment would (i) convert Contango's interest
     into a general partner interest, (ii) modify the limited liability of
     Contango, (iii) increase the obligations of Contango under the Partnership
     Agreement, or (iv) materially and disproportionately adversely alter the
     interest of Contango in profits, losses or distributions.

     9.10 Exercise of Rights and Remedies. Except as otherwise provided herein,
     no delay of or omission in the exercise of any right, power or remedy
     accruing to the party as a result of any breach or default by the other
     party under this Agreement shall impair any such right, power or remedy,
     nor shall it be construed as a waiver of or acquiescence in any such breach
     or default, or of any similar breach or default occurring later; nor shall
     any waiver of any single breach or default be deemed a waiver of any other
     breach or default occurring before or after that waiver.

     9.11 No Strict Construction. Notwithstanding the fact that this Agreement
     has been drafted or prepared by one of the parties, both the Cheniere
     Entities and the Contango Entities confirm that both they and their
     respective counsel have reviewed, negotiated and adopted this Agreement as
     the joint agreement and understanding of the parties, and the language used
     in this Agreement shall be deemed to be the language chosen by the parties
     hereto to express their mutual intent, and no rule of strict construction
     shall be applied against any person.

     9.12 Time. Time is of the essence in this Agreement.

     9.13 Survival. The representations, warranties, covenants and agreements of
     parties made in this Agreement shall survive (and not be affected in any
     respect by) the Closing.

     9.14 Reformation and Severability. In case any provision of this Agreement
     shall be invalid, illegal or unenforceable, it shall, to the extent
     possible, be modified in such a manner as to be valid, legal and
     enforceable but so as to most nearly retain the intent of the parties, and
     if such modification is not possible, such provision shall be severed from
     this Agreement, and in either case the validity, legality and
     enforceability of the remaining provisions of this Agreement shall not in
     any way be affected or impaired thereby.

                            (Signature Page Follows)

                                       15

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                           CHENIERE ENERGY, INC.

                                           By: /s/ Charif Souki
                                               ---------------------------------
                                           Name:  Charif Souki
                                           Title: Chairman

                                           CHENIERE LNG, INC.

                                           By: /s/ Charif Souki
                                               ---------------------------------
                                           Name:  Charif Souki
                                           Title: Chairman

                                           CONTANGO SUNDANCE, INC.

                                           By: /s/ Kenneth R. Peak
                                               ---------------------------------
                                           Name:  Kenneth R. Peak
                                           Title: Chairman

                                           CONTANGO OIL & GAS

                                           By: /s/ Kenneth R. Peak
                                               ---------------------------------
                                           Name:  Kenneth R. Peak
                                           Title: Chairman<PAGE>

                                                                    Exhibit 10.9

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED ("ACT"), OR
UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND THEY CANNOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED, PLEDGED OR OTHERWISE HYPOTHECATED EXCEPT IN ACCORDANCE WITH
THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE LAWS OR UPON DELIVERY TO
THE COMPANY OF AN OPINION OF LEGAL COUNSEL SATISFACTORY TO THE COMPANY THAT AN
EXEMPTION FROM REGISTRATION IS AVAILABLE.

                        Warrant to Purchase Common Stock
                                       of
                              CHENIERE ENERGY, INC.

     This Warrant (this "Warrant") to Purchase Common Stock (as defined below)
is issued March 1, 2003, by Cheniere Energy, Inc., a Delaware corporation (the
"Company"), to Contango Sundance, Inc. (the "Holder").

     1.   Issuance of Warrant; Term. The Company hereby grants to Holder,
subject to the provisions hereinafter set forth, the right to purchase three
hundred thousand (300,000) shares of common stock, $.003 par value per share, of
the Company (the "Common Stock"). The shares of Common Stock issuable upon
exercise of this Warrant are hereinafter referred to as the "Shares." This
Warrant shall be exercisable at any time before 5:00 p.m. (Houston, Texas time)
on February 28, 2013 (the "Exercise Period").

     2.   Exercise Price. This exercise price per share for which all or any of
the Shares may be purchased pursuant to the terms of this Warrant shall be $2.50
(the "Exercise Price").

     3.   Exercise.

               (a)  This Warrant may be exercised by Holder, from time to time,
in whole or in part, at any time prior to the expiration of the Exercise Period,
upon Holder's delivery of (i) written notice of intent to the Company at the
address of the Company set forth below its signature or such other address as
the Company shall designate in writing to Holder, (ii) this Warrant and (iii)
payment (in the manner described in Section 3(b) below) for the aggregate
Exercise Price of the Shares so purchased. Upon exercise of this Warrant as
aforesaid, the Company shall as promptly as practicable, but in no event later
than 15 days after delivery of the notice, Warrant and Exercise Price execute
and deliver, or cause to be delivered, to Holder a certificate or certificates
for the total number of whole Shares for which this Warrant is being exercised
in such names and denominations as are requested by Holder. If this Warrant
shall be exercised with respect to less than all of the Shares, Holder shall be
entitled to receive a new Warrant covering the number of Shares in respect of
which this Warrant shall not have been exercised, which new Warrant shall in all
other respects be identical to this Warrant.

               (b)  Payment for the Shares to be purchased upon exercise of this
Warrant may be made by the delivery of a certified or cashier's check payable to
the Company for the aggregate Exercise Price of the Shares to be purchased.

     4.   Representations and Warranties of the Company.

               (a)  Due Incorporation and Good Standing. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of

<PAGE>

Delaware, with full and adequate power to carry on and conduct its business as
presently conducted, and is duly licensed or qualified in all foreign
jurisdictions wherein the failure to be so qualified or licensed would
reasonably be expected to have a material adverse effect on the business of the
Company.

               (b)  Due Authorization. The Company has full right, power and
authority to enter into, execute and deliver this Warrant and to perform all of
its duties and obligations under this Warrant. The execution and delivery of
this Warrant will not, nor will the observance or performance of any of the
matters and things herein set forth, violate or contravene any provision of the
law or the Company's bylaws or certificate of incorporation. All necessary and
appropriate corporate action on the part of the Company has been taken to
authorize the execution and delivery of this Warrant.

               (c)  Enforceability. This Warrant has been validly executed and
delivered by the Company and constitutes the legal, valid and binding obligation
of the Company enforceable against it in accordance with its respective terms,
subject to applicable bankruptcy, insolvency, reorganization or similar laws
relating to or affecting the enforcement of creditors' right and to the
availability of the remedy of specific performance.

               (d)  Absence of Conflicts. The execution, delivery and
performance by the Company of this Warrant, and the transactions contemplated
hereby, do not constitute a breach or default, or require consents under, any
agreement, permit, contract or other instrument to which the Company is a party,
or by which the Company is bound, or to which any Company assets are subject, or
any judgment, order, writ, decree, authorization or license to which the
Company, or the assets of the Company are bound or subject to, or any rule,
regulations or statues and will not result in the creation of any lien upon any
of the assets of the Company.

               (e)  Issuance Upon Exercise. The Company shall at all times
reserve and keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of effecting the exercise of this Warrant, such
number of its shares of Common Stock as shall from time to time be sufficient to
effect the exercise of this Warrant, and if at any time the number of authorized
but unissued shares of Common Stock shall not be sufficient to effect the
exercise of the entire Warrant, in addition to such other remedies as shall be
available to the holder of this Warrant, the Company will use commercially
reasonable efforts to take such corporate action as may, in the opinion of its
counsel, be necessary to increase its authorized but unissued shares of Common
Stock to such number of shares as shall be sufficient for such purpose. Upon
exercise of this Warrant in accordance with the terms hereof, the Shares shall
be validly issued, fully paid and nonassessable.

     5.   Covenants and Conditions.

               (a)  Neither this Warrant nor the Shares have been registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws ("Blue Sky Laws"). This Warrant and the Shares have been
acquired by the Holder for investment purposes and not with a view to
distribution or resale, and the Shares may not be made subject to a security
interest, pledged, hypothecated, sold or otherwise transferred without an
effective registration statement therefor under the Act and such applicable Blue
Sky Laws or an opinion of counsel (which opinion and counsel rendering same
shall be reasonably acceptable to the Company) that registration is not required
under the Act and under any applicable Blue Sky Laws. The certificates
representing the Shares shall bear substantially the following legend:

                                        2

<PAGE>

     THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT'), OR
     QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS, BUT HAVE BEEN
     ACQUIRED FOR THE PRIVATE INVESTMENT OF THE HOLDER HEREOF AND MAY NOT BE
     OFFERED, SOLD OR TRANSFERRED UNTIL (I) A REGISTRATION STATEMENT UNDER THE
     ACT OR SUCH APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE
     WITH REGARD THERETO, OR (II) IN THE OPINION OF COUNSEL (WHICH OPINION AND
     COUNSEL SHALL BE REASONABLY SATISFACTORY TO THE COMPANY) REGISTRATION UNDER
     THE LAW OR SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN
     CONNECTION WITH SUCH PROPOSED OFFER, SALE OR TRANSFER.

     Other legends as required by applicable federal and state laws may be
placed on such certificates. Holder and the Company agree to execute such
documents and instruments as counsel for the Company reasonably deems necessary
to effect compliance of the issuance of this Warrant and any Shares issued upon
exercise hereof with applicable federal and state securities laws.

     6.   Warrantholder not Stockholder. This Warrant does not confer upon
Holder any voting rights or other rights as a stockholder of the Company.

     7.   Certain Adjustments.

     7.1  Capital Reorganizations, Mergers, Consolidations or Sales of Assets.
If at any time there shall be a capital reorganization (other than a combination
or subdivision of Common Stock otherwise provided for herein), a share exchange
(subject to and duly approved by the stockholders of the Company) or a merger or
consolidation of the Company with or into another corporation, or the sale of
the Company's properties and assets as, or substantially as, an entirety to any
other person, then, as a part of such reorganization, share exchange, merger,
consolidation or sale, lawful provision shall be made so that Holder shall
thereafter be entitled to receive upon exercise of this Warrant, during the
period specified in this Warrant and upon payment of the Exercise Price, the
number of shares of stock or other securities or property of the Company or the
successor corporation resulting from such reorganization, share, exchange,
merger, consolidation or sale, to which Holder would have been entitled under
the provisions of the agreement in such reorganization, share exchange, merger,
consolidation or sale if this Warrant had been exercised immediately before that
reorganization, share exchange, merger, consolidation or sale. In any such case,
appropriate adjustment (as determined in good faith by the Board) shall be made
in the application of the provisions of this Warrant with respect to the rights
and interests of Holder after the reorganization, share exchange, merger,
consolidation or sale to the end that the provisions of this Warrant (including
adjustment of the Exercise Price then in effect and the number of the Shares)
shall be applicable after that event, as near as reasonably may be, in relation
to any shares or other property deliverable after that event upon exercise of
this Warrant.

     7.2  Splits and Subdivisions. If the Company at any time or from time to
time fixes a record date for the effectuation of a split or subdivision of the
outstanding shares of Common Stock or the determination of the holders of Common
Stock entitled to receive a dividend or other distribution payable in additional
shares of Common Stock or other securities or rights convertible into, or
entitling the holder thereof to receive directly or indirectly, additional
shares of Common Stock (hereinafter referred to as the "Common Stock
Equivalents") without

                                        3

<PAGE>

payment of any consideration by such holder for the additional shares of Common
Stock or Common Stock Equivalents, then, as of such record date (or the date of
such distribution, split or subdivision if no record date is fixed), the
Exercise Price shall (i) in the case of a split or subdivision, be appropriately
decreased and the number of the Shares shall be appropriately increased in
proportion to such increase of outstanding shares and (ii) in the case of a
dividend or other distribution, the holder of the Warrant shall have the right
to acquire without additional consideration, upon exercise of the Warrant, such
property or cash as would have been distributed in respect of the shares of
Common Stock for which the Warrant was exercisable had such shares of Common
Stock been outstanding on the date of such distribution.

     7.3  Combination of Shares. If the number of shares of Common Stock
outstanding at any time after the date hereof is decreased by a combination or
reverse stock split of the outstanding shares of Common Stock, the Exercise
Price shall be appropriately increased and the number of the Shares shall be
appropriately decreased in proportion to such decrease in outstanding shares.

     7.4  Adjustments for Other Distributions. In the event the Company shall
declare a distribution payable in securities of other persons, evidences of
indebtedness issued by the Company or other persons, assets (excluding cash
dividends) or options or rights not referred to in Section 7.2, upon exercise of
this Warrant, Holder shall be entitled to a proportionate share of any such
distribution as though Holder was the holder of the number of shares of Common
Stock of the Company into which this Warrant may be exercised as of the record
date fixed for the determination of the holders of Common Stock of the Company
entitled to receive such distribution.

     7.5  Certificate as to Adjustments. In the case of each adjustment or
readjustment of the Exercise Price pursuant to this Article 7, the Company will
promptly compute such adjustment or readjustment in accordance with the terms
hereof and cause a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based
to be delivered to Holder. The Company will, upon the written request at any
time of Holder, furnish or cause to be furnished to Holder a certificate setting
forth:

               (a)  Such adjustment and readjustments;

               (b)  The Exercise Price at the time in effect; and

               (c)  The number of Shares and the amount, if any, of other
property at the time receivable upon the exercise of the Warrant.

     7.6  Notices of Record Date, etc.  In the event of:

               (a)  Any taking by the Company of a record of the holders of any
class of securities of the Company for the purpose of determining the holders
thereof who are entitled to receive any dividends or other distribution, or any
right to subscribe for, purchase or otherwise acquire any shares of stock of any
class or any other securities or property, or to receive any other right; or

               (b)  Any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
transfer of all or substantially all of

                                        4

<PAGE>

the assets of the Company to any other person or any consolidation, share
exchange or merger involving the Company; or

               (c)  Any voluntary or involuntary dissolution, liquidation or
winding up of the Company,

     The Company will mail to Holder at least 20 days prior to the earliest date
specified in this Section 7.6, a notice specifying:

               (i)  The date on which any such record is to be taken for the
          purpose of such dividend, distribution or right, and the amount and
          character of such dividend, distribution or right; and

               (ii) The date on which any such reorganization, reclassification,
          transfer, consolidation, share exchange, merger, dissolution,
          liquidation or winding up is expected to become effective and the
          record date for determining stockholders entitled to vote thereon.

     8.   Registration Rights.

     8.1  Right to Include Registrable Securities (Piggyback Registration).
Except as set forth below, if the Company at any time proposes or is required to
file a Registration Statement under the Act covering any of its securities,
whether or not for its own account, other than (i) a registration on Form S-4,
Form S-8, or any successor or similar forms, or (ii) a shelf registration under
Rule 415 under the Act for the sole purpose of registering shares to be issued
in connection with the acquisition of assets, whether or not for sale for its
own account, it will each such time give prompt written notice to the Holder of
its intention to do so and of the Holder's rights under this Section 8.1. Upon
the written request of the Holder made within 30 days after the receipt of any
such notice (which request shall specify the Shares intended to be disposed of
by the Holder and the intended method of disposition thereof), the Company will
use its best efforts to effect the registration under the Act of all Shares
which the Company has been so requested to register by the Holder, to the extent
required to permit the disposition in accordance with the intended methods of
disposition, by inclusion of such Shares in the Registration Statement which
covers the securities that the Company proposes to register ("Piggyback Right");
provided, that if, at any time after giving written notice of its intention to
register any securities and prior to the effective date of the Registration
Statement filed in connection with such registration, the Company shall
determine for any reason either not to register or to delay registration of such
securities, the Company may, at its election, give written notice of such
determination to the Holder and, thereupon, (i) in the case of a determination
not to register, shall be relieved of its obligation to register any Shares in
connection with such registration (but not from its obligation to pay the
registration expenses in connection therewith), without prejudice and (ii) in
the case of a determination to delay registering, shall be permitted to delay
registering any Shares, for the same period as the delay in registering such
other securities. There is no limitation on the number of such piggyback
registrations pursuant to this Section 8 which the Company is obligated to
effect.

               (a)  Priority in Piggyback Registrations. If (i) a registration
pursuant to Section 8.1 involves an underwritten offering of the securities
being registered, whether or not for sale for the account of the Company, to be
distributed by or through one or more underwriters under underwriting terms
appropriate for such a transaction, and (ii) the managing underwriter of such
underwritten offering shall inform the Company and the Holder by letter that

                                        5

<PAGE>

marketing factors require a limitation of the number of securities (including
the Shares) to be underwritten (such writing to state the basis of such belief
and the approximate number of such securities which may be distributed without
such effect), then the underwriter(s) may exclude shares (including the Shares)
from the registration and the underwriting, and the number of shares that may be
included in the registration and the underwriting shall be allocated as follows:
(1) if the Company initiates the registration, first, to the Company and second,
to the Holder or any other person or entity exercising piggyback registration
rights on a pro rata basis based on the total number of Shares or shares of
Common Stock then held by such Holder or other person or entity; or (2) if a
person or entity (including the Holder) is exercising demand registration
rights, first, to such person or entity or Holder exercising such demand
registration rights, second, to the Company, and third, to the Holder or any
other person or entity exercising piggyback registration rights on a pro rata
basis based on the total number of Common Stock or Shares then held by the
Holder or such other person or entity. In the event that the underwriters
determine that the total amount of securities requested to be included in the
Offering exceeds the amount that the underwriters determine is compatible with
the success of the Offering, then the Company shall provide written notice of
such determination to the Holder.

               (b)  Holder's Right to Withdraw. The Holder shall have the right
to withdraw its request for inclusion of its Shares in any registration
statement pursuant to Section 7.1 by giving written notice to the Company of its
request to withdraw; provided, however, that (i) such request must be made in
writing prior to the earlier of the execution of the custody agreement with
respect to such registration and (ii) such withdrawal shall be irrevocable and,
after making such withdrawal, the Holder shall no longer have any right to
include Shares in the registration as to which such withdrawal was made.

     8.2  Demand Registration. Except as provided in Section 8.2(d) below, the
Holder shall be entitled to one Demand Registration Request (as defined herein).
Subject to this Section 8.2, the Holder shall have the right to require the
Company to file a registration statement under the Act covering the Shares by
delivering a written request therefor to the Company specifying the Shares to be
included in such registration by the Holder and the intended method of
distribution thereof. Any such request pursuant to this Section 8.2 is referred
to herein as a "Demand Registration Request" and the registration so requested
is referred to herein as the "Demand Registration."

               (a)  Registration. The Company shall, as expeditiously as
possible following the Demand Registration Request, use best efforts to effect
such registration under the Act (including, without limitation, by means of a
shelf registration pursuant to Rule 415 under the Act if so requested and if the
Company is then eligible to use such a registration) of the Shares which the
Company has been so requested to register, for distribution in accordance with
such intended method of distribution.

               (b)  Limitations on Requested Registration. The rights of the
Holder to request a Demand Registration pursuant to this Section 8.2 are subject
to the following limitations: (1) except as provided in Section 8.2(d), in no
event shall the Holder be entitled to more than one Demand Registration Requests
and (2) Holder shall have no rights under this Section 8.2 if the Holder has
participated in a Demand Registration in a 90-day period preceding the request.

               (c)  Company Registration. During the period starting with the
date of filing of, and ending on a date 180 days after the effective date of, a
registration subject to Section 8.1 hereof, the Company shall not be obligated
to effect, or take any action to effect,

                                        6

<PAGE>

any registration pursuant to this Section 8.2; provided that the Company is
actively employing good faith and commercially best efforts to cause such
registration statement to become effective. In the event that the Company
determines not to pursue a registration or to withdraw a registration that has
been filed, notice of such action will be provided promptly by the Company to
the Holder.

               (d)  Underwriting Requirements. If the Holder intends to
distribute the Shares by means of an underwriting, it shall so advise the
Company as a part of its request made pursuant to this Section 8.2. The
underwriter will be selected by the Holder and shall be reasonably acceptable to
the Company. All persons, including the Holder, proposing to distribute their
Common Stock through such underwriting shall enter into an underwriting
agreement in customary form with the underwriter or underwriters selected for
such underwriting. Notwithstanding any other provisions of this Section 8.2, if
the underwriter advises the Holder in writing that marketing factors require a
limitation of the number of shares to be underwritten, then the number of Shares
and other securities that may be included in the underwriting shall be allocated
first, to the Holder, second, to the Company, and third, to any other person or
entity of whose Common Stock the Company has agreed may be included in the
offering or any other person exercising piggyback registration rights on a pro
rata basis. In the event that notice is received from the underwriter that the
number of shares to be underwritten should be limited, and as a result of such
limitation Holder will continue to hold 200,000 or more Shares, then the
offering shall not be deemed to be a Demand Registration Request.

     8.3  Expenses. All expenses incurred in connection with a Demand
Registration pursuant to this Article 8, including without limitation all
registration and qualification fees, printers' and accounting fees, fees and
disbursements of counsel for the Company, and the reasonable fees and
disbursements of one counsel for Holder (but excluding underwriters' discounts
and commissions), shall be borne by the Company. The Holder shall bear such
Holder's proportionate share (based on the total number of shares sold in such
registration other than for the account of the Company) of all discounts,
commissions or other amounts payable to underwriters or brokers in connection
with such offering. Notwithstanding the foregoing, the Company shall not be
required to pay for any expenses of any registration proceeding begun pursuant
to this Article 8 if the registration request is subsequently withdrawn at the
request of the Holder, unless the Holder agrees to forfeit its right to one
Demand Registration; provided, further, however, that if at the time of such
withdrawal, the Holder has learned of a material adverse change in the
condition, business, or prospects of the Company not known to the Holder at the
time of its request for such registration and has withdrawn its request for
registration with reasonable promptness after learning of such material adverse
change, then the Holder shall not be required to pay any such expenses and shall
retain its rights pursuant to this Article 8.

     8.4  Obligations of the Company. Whenever required to effect the
registration of any Shares under this Agreement, the Company shall, as
expeditiously as reasonably possible:

               (a)  prepare and file with the Securities and Exchange Commission
("SEC") a registration statement with respect to such Shares and use reasonable,
diligent efforts to cause such registration statement to become effective, and,
upon the request of the Holder registered thereunder, keep such registration
statement effective for up to 90 days;

               (b)  prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration

                                        7

<PAGE>

statement as may be necessary to comply with the provisions of the Act with
respect to the disposition of all securities covered by such registration
statement;

               (c)  furnish to the Holder a copy of the prospectus, including a
preliminary prospectus, in conformity with the requirements of the Act, and such
other documents as Holder may reasonably request in order to facilitate the
disposition of the Shares owned by it that are included in such registration;

               (d)  use reasonable, diligent efforts to register and qualify the
securities covered by such registration statement under such other securities or
blue sky laws of such jurisdictions as shall be reasonably requested by the
Holder, provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent
to service of process in any such states or jurisdictions;

               (e)  in the event of any underwritten public offering, enter into
and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter(s) of such offering. The Holder
shall also enter into and perform its obligations under such an agreement;

               (f)  notify the Holder at any time when a prospectus relating to
the Shares is required to be delivered under the Act, of the happening of any
event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
then existing;

               (g)  furnish, at the request of Holder, on the date that Shares
are delivered to the underwriters for sale, if such securities are being sold
through underwriters, or, if such securities are not being sold through
underwriters, on the date that the registration statement with respect to such
securities becomes effective:

               (i)  an opinion, dated as of such date, of the counsel
          representing the Company for the purposes of such registration, in
          form and substance as is customarily given to underwriters in an
          underwritten public offering and reasonably satisfactory to the Holder
          requesting registration, addressed to the underwriters, if any, and to
          the Holder; and

               (ii) a "comfort" letter dated as of such date, from the
          independent certified public accountants of the Company, in form and
          substance as is customarily given by independent certified public
          accountants to underwriters in an underwritten public offering and
          reasonably satisfactory to the Holder requesting registration,
          addressed to the underwriters, if any, and to the Holder.

     8.5  Furnish Information. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to Article 8 that the
Holder shall furnish to the Company such information regarding itself, the
Shares held by it, and the intended method of disposition of such securities as
shall be required to timely effect the registration of the Shares.

                                        8

<PAGE>

     8.6  Indemnification. In the event any Shares are included in a
registration statement under Sections 8.1 or 8.2:

               (a) To the extent permitted by law, the Company will indemnify
and hold harmless the Holder, the shareholders, partners, members, officers and
directors of the Holder, any underwriter (as defined in the Act) for such Holder
and each person, if any, who controls such Holder or underwriter within the
meaning of the Act or the Securities and Exchange Act of 1934, as amended (the
"1934 Act") against any losses, claims, damages, or liabilities (joint or
several) to which they may become subject under the Act, the 1934 Act or other
federal or state law, insofar as such losses, claims, damages, or liabilities
(or actions in respect thereof) arise out of or are based upon any of the
following statements, omissions or violations (collectively, "Violations" and,
individually, a "Violation"):

               (i)   any untrue statement or alleged untrue statement of a
          material fact contained in such registration statement, including any
          preliminary prospectus or final prospectus contained therein or any
          amendments or supplements thereto;

               (ii)  the omission or alleged omission to state therein a
          material fact required to be stated therein, or necessary to make the
          statements therein not misleading; or

               (iii) any violation or alleged violation by the Company of the
          Act, the 1934 Act, any federal or state securities law or any rule or
          regulation promulgated under the Act, the 1934 Act or any federal or
          state securities law in connection with the offering covered by such
          registration statement; and

               (iv)  the Company will reimburse Holder, shareholder, partner,
          member, Manager, officer or director, underwriter or controlling
          person for any legal or other expenses reasonably incurred by them, as
          incurred, in connection with investigating or defending any such loss,
          claim, damage, liability or action; provided however, that the
          indemnity agreement contained in this Section 8.6(a) shall not apply
          to amounts paid in settlement of any such loss, claim, damage,
          liability or action if such settlement is effected without the consent
          of the Company (which consent shall not be unreasonably withheld), nor
          shall the Company be liable in any such case for any such loss, claim,
          damage, liability or action to the extent that it arises out of or is
          based upon a Violation which occurs in reliance upon and in conformity
          with written information furnished expressly for use in connection
          with such registration by such Holder, shareholder, partner, member,
          officer, director, underwriter or controlling person of Holder.

               (b)   To the extent permitted by law, the Holder will indemnify
and hold harmless (i) the Company, each of its directors, each of its officers
who have signed the registration statement, each person, if any, who controls
the Company within the meaning of the Act and (ii) any underwriter, against any
losses, claims, damages or liabilities to which the Company or any such
director, officer, controlling person or underwriter may become subject under
the Act, the 1934 Act or other federal or state law, insofar as such losses,
claims, damages or liabilities (or actions in respect thereto) arise out of or
are based upon any Violation, in each case to the extent (and only to the
extent) that such Violation occurs in reliance upon and in conformity with
written information furnished by Holder expressly for use in connection with
such registration; and Holder will reimburse any legal or other expenses
reasonably

                                        9

<PAGE>

incurred by the Company or any such director, officer, controlling person or
underwriter in connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that the indemnity agreement
contained in this Section 8.6(b) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Holder, which consent shall not be
unreasonably withheld; and provided further, that the total amounts payable in
indemnity by a Holder under this Section 8.6(b) in respect of any Violation
shall not exceed the net proceeds received by Holder in the registered offering
out of which such Violation arises.

               (c)  Promptly after receipt by an indemnified party under this
Section 8.6 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 8.6, deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the fees and expenses to be paid
by the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual
or potential conflict of interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if prejudicial to its ability to defend such
action, shall relieve such indemnifying party of any liability to the
indemnified party under this Section 8.6, but the omission so to deliver written
notice to the indemnifying party will not relieve it of any liability that it
may have to any indemnified party otherwise than under this Section 8.6.

               (d)  Defect Eliminated in Final Prospectus. The foregoing
indemnity agreements of the Company and Holder are subject to the condition
that, insofar as they relate to any Violation made in a preliminary prospectus
but eliminated or remedied in the amended prospectus on file with the SEC at the
time the registration statement in question becomes effective or the amended
prospectus filed with the SEC pursuant to SEC Rule 424(b) (the "Final
Prospectus"), such indemnity agreement shall not inure to the benefit of any
person if a copy of the Final Prospectus was furnished to the indemnified party
and was not furnished to the person asserting the loss, liability, claim or
damage at or prior to the time such action is required by the Act.

     8.7  Survival. The obligations of the Company and Holder under Section 8.6
shall survive the completion of any offering of Shares in a registration
statement, and otherwise.

     8.8  Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the SEC which may at any time permit the sale
of the Shares to the public without registration, the Company agrees to:

               (a)  Make and keep public information available, as those terms
are understood and defined in Rule 144 under the Act, at all times after the
date hereof;

               (b)  Use reasonable, diligent efforts to file with the SEC in a
timely manner all reports and other documents required of the Company under the
Act and the 1934 Act; and

                                       10

<PAGE>

               (c)  So long as Holder owns the Warrant or any Shares, to furnish
to the Holder upon request a written statement by the Company as to its
compliance with the reporting requirements of said Rule 144, and of the Act and
the 1934 Act, a copy of the most recent annual or quarterly report of the
Company, and such other reports and documents of the Company as the Holder may
reasonably request in availing itself of any rule or regulation of the
Commission allowing a Holder to sell any such securities without registration.

     9.   Fractional Shares. The Company shall not be required to issue a
fractional share upon the exercise of this Warrant the aggregate number of
shares issuable will be rounded up to the nearest full share.

     10.  Split-Up, Combination, Exchange and Transfer of Warrants. Subject to
and limited by the provisions of Section 5(a) hereof, this Warrant at the
request of the Holder may be split up, combined or exchanged for another Warrant
or Warrants containing the same terms and entitling the Holder to purchase a
like aggregate number of Shares. If the Holder desires to split up, combine or
exchange this Warrant, the Holder shall make such request in writing delivered
to the Company and shall surrender to the Company this Warrant and any other
Warrants to be so split up, combined or exchanged. Upon any such surrender for a
split-up, combination or exchange, the Company shall execute and deliver to the
person entitled thereto a Warrant or Warrants, as the case may be, as so
requested. The Company shall not be required to effect any split-up, combination
or exchange which will result in the issuance of a Warrant that would entitle
the Warrantholder to purchase upon exercise a fraction of a share of Common
Stock or a fractional Warrant. The Company may require such Holder to pay a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any split-up, combination or exchange of Warrants.

     11.  Successors and Assigns. All the covenants and provisions of this
Warrant shall bind and inure to the benefit of the Company's successors and
assigns, and successors and permitted assigns of Holder.

     12.  Governing Law. This Warrant shall be governed by and construed in
accordance with the laws, and not the laws of conflicts, of the State of
Delaware. The Holder hereby consents and agrees to submit to the jurisdiction in
the United States of the District Court of the State of Texas located in Harris
County or of the United States District Court for the Southern District of Texas
for any action or proceeding brought by the Company arising under this Warrant
and to the venue of such action or proceeding in such courts.

                                         CHENIERE ENERGY, INC.

                                         By: /s/ Charif Souki
                                            ------------------------------------
                                         Name:    Charif Souki
                                         Title:   Chairman

                                       11

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