Senator Landrieu Supports Cheniere Energy

We are pounding the table as a BUY right now on Cheniere Energy - LNG. E&Y and S&P stand behind Cheniere too despite a recent drop in their stock which we feel is completely unwarranted. LNG is a very STRONG BUY.

For Immediate Release

March 10, 2011

Contact: media@landrieu.senate.gov

Landrieu Pushes for Key Federal Approval of Gas Export Facility in Southwest Louisiana

Washington, D.C. – United States Senator Mary L. Landrieu, D-La., today vowed to intensify her push for U.S. Department of Energy approval of a liquefied natural gas (LNG) export facility on the Sabine Pass in Cameron Parish.

Cheniere Energy’s proposal to transform its existing LNG receiving terminal into a facility that can both import and export LNG would bring substantial economic benefits to southwest Louisiana, including:

· Establishment of the world’s only bi-directional LNG processing facility on the Sabine Pass;

· Creation or sustainment of 30,000-50,000 indirect production jobs;

· Creation of 3,000 peak construction jobs;

· Creation of 100-150 new direct long-term, skilled technical jobs.

After writing numerous letters to the Department of Energy and the Federal Energy Regulatory Commission as well as the President, urging them to approve the project, Sen. Landrieu is now calling on the administration for immediate affirmative action.

Landrieu said: “The Cheniere project is of crucial importance to southwest Louisiana, which has never fully recovered from Hurricanes Rita and Ike. I am urging (Energy) Secretary Chu and (Federal Energy Regulatory Commission) Chairman Wellinghoff to act without further delay to approve this important project, which will not only put our people back to work, but also help reduce global emissions by giving other countries greater access to a cleaner source of energy and, through exports, improve the U.S. trade balance by as much as $5 to $7billion annually. There is no reason not to move forward right away with final approval.”

Cheniere Energy - LNG Notes

Yesterday, shares plunged 36%, only to rebound more than 35% this morning. There was immediate short covering then apparently, the shorts sold the shares again driving out the hot money day flippers.

Our position on Cheniere Energy has not changed.

Hold the shares that you own.

Since last year, the company remains on track to gain the required permits from the D.O.E and other state and federal agencies that will allow it to become the first company to export liquefied natural gas in the US. This will create more construction and energy related jobs and a solution to the over abundance of NG supply at $4.00 per unit. The arb play is to buy it here in the US and sell the cooled LNG in offshore at $9.00 per unit. A brilliant play!

Cheniere Is Not in Default on and Debt Payments as guaranteed by the CEO and E&Y accounting firm.

The only issue filed in the 8K was a disturbing letter filed by a bondholder in Cheniere Energy Partners, a firm related to Cheniere Energy called Centerbridge Partners who are obviously entangled with the 10,000,000 share shorts. The bondholder claims Sabine Pass is in default of a debt payment because it strayed from general accounting rules in the way it recognized revenue. Totally not true per Cheniere's CEO, Charif Souki.

What happened then? The Centerbridge bondholder letter scared investors out the market on Wednesday and sent the shares plunging until clarity could take hold, unexpected from the company's intentions for disclosure.

We spoke to the company Wednesday like others did and executives there say that the lawsuit is baseless. Centerbridge isn't even a shareholder and they don"t even know what bonds are in question? The company has filed a lawsuit, claiming that the bondholder has disrupted Cheniere’s business and engaged in defamation and business disparagement. So true and malicious! Additionally, Cheniere said that its auditors found "no fault" with the company’s revenue-recognition policies in the most recent quarterly report that went out a few weeks ago.

Citigroup agrees with our firm belief that Cheniere Energy will soon very likely receive the necessary permits from the Department of Energy to export U.S. produced LNG to Asia. Why would they block this agenda to create more jobs and earn US more revenue dollars? This morning, Citigroup reiterated its “Buy” rating on the stock and calmed investors. Buying ensued, then shorts re-entered.

Current action to take: HOLD Cheniere Energy (LNG) to the $11.00 level unless otherwise advised. Click

If the stock stays in the $7.00 range buy more shares. Remember that before the letter of disturbance by Centerbridge, Cheniere had traded at the $10.50 level, well ahead of our initial $5.00 buy price late last year. We feel that the stock, ultimately, is headed into the $15 - $20.00 level for those longer term players.

A similar play occurred three years ago with InterOil and a Refinery in Papua New Guinea. Check it out. LNG went from $10.00 to $75 with the help of George Soros HF manager.