Does Cheniere Energy Partners issue a K-1?

Yes. CQP (NYSE American) is a publicly traded partnership. You receive a Schedule K-1 (Form 1065) every year you hold units. Do not confuse CQP with Cheniere Energy, Inc. (ticker: LNG), which is a C-corporation that issues a 1099-DIV instead.

What's the difference between CQP and LNG stock?

CQP is the limited partnership that owns the Sabine Pass LNG terminal — it issues a K-1, creates basis erosion, and has §751 recapture exposure. LNG is the C-corporation parent — it issues a 1099-DIV with qualified dividends and standard capital gains treatment. Both trade on NYSE American.

Where do I download my CQP K-1?

Download at taxpackagesupport.com/cheniere. You will need your SSN and the number of units held as of December 31, 2025. For phone support, call (866) 709-8182.

Do I need to file Louisiana state taxes because I own CQP?

CQP's primary asset is the Sabine Pass LNG terminal in Louisiana. Your K-1 state supplement will show Louisiana income allocation. Louisiana has a low nonresident filing threshold. For small positions, the allocation often falls below the threshold. Texas (Corpus Christi operations) has no state income tax.

What happens if I confuse CQP with LNG stock?

CQP (Cheniere Energy Partners) is a partnership that issues a K-1, creates basis erosion, and has section 751 recapture exposure. LNG (Cheniere Energy, Inc.) is a C-corporation that issues a 1099-DIV with qualified dividends and standard capital gains treatment. Both trade on NYSE American. Entering the wrong tax forms will cause errors on your return.

Why does CQP erode my basis faster than pipeline MLPs?

CQP's LNG terminal infrastructure generates approximately 60-75% return of capital on a ~5.5% yield, eroding basis at roughly 3-5% per year — faster than most pipeline MLPs at 2-4%. The massive Sabine Pass facility creates significant depreciation pass-throughs, leading to larger section 751 recapture at sale.

Should I hold CQP in an IRA?

CQP carries higher UBTI risk than most pipeline MLPs. Positions worth $30,000 or more may generate unrelated business taxable income above the $1,000 threshold, requiring your IRA to file Form 990-T. A taxable account preserves the section 199A deduction and basis step-up benefits that are lost in an IRA.

How much section 751 recapture should I expect when selling CQP?

CQP owns the massive Sabine Pass LNG terminal with over $15 billion in depreciable infrastructure. Long-term holders should expect outsized section 751 ordinary income recapture at sale — potentially a larger percentage of total gain than typical pipeline MLPs. The exact amount appears on the Sales Schedule in your final K-1.

Cheniere Energy Partners (CQP) K-1 Guide — LNG Tax Profile & Basis Erosion

Q: How fast does CQP erode my cost basis?

At approximately 60-75% return of capital on a ~5.5% yield, CQP erodes basis at roughly 3-5% per year — faster than most pipeline MLPs (2-4%) but slower than royalty MLPs like NRP (5-8%+). At this rate, a CQP investor could approach zero basis in approximately 7-10 years.

Yes, Cheniere Energy Partners (CQP) issues a Schedule K-1 — not a 1099. CQP is a publicly traded partnership that owns the Sabine Pass LNG terminal. If you own CQP units, your 2025 K-1 is available as of March 6, 2026 at taxpackagesupport.com/cheniere. Do not confuse CQP with LNG (Cheniere Energy, Inc.) — LNG is the C-corp parent and issues a 1099-DIV, not a K-1.

By Lucas Andersen — Last updated March 6, 2026

2025 K-1 Release Date

CQP 2025 K-1 tax schedules became available online after March 6, 2026. Mailed copies shipped on or about March 9, 2026. Download at taxpackagesupport.com/cheniere or call (866) 709-8182.

CQP vs LNG: Two Tickers, Completely Different Tax Treatment

CQP (NYSE American) is a limited partnership — K-1, pass-through taxation, basis erosion, §751 exposure. LNG (NYSE American) is a C-corporation — 1099-DIV, qualified dividends, standard capital gains. Both trade on the same exchange. If you own both, you have two completely separate tax reporting obligations.

What CQP Does — LNG Export Infrastructure

Cheniere Energy Partners LP (NYSE American: CQP) owns and operates LNG liquefaction and export terminals — fundamentally different from pipeline MLPs. Core asset: Sabine Pass LNG (Louisiana) with six operational trains and ~30 mtpa capacity. Revenue comes from long-term (20+ year) take-or-pay contracts. ~$59/unit, $28B+ enterprise value, ~5.5% yield.

CQP’s Distribution Profile — High Dollar, High Erosion

CQP pays ~$0.825/quarter (~$3.30/year, ~5.5% yield) with approximately 60-75% return of capital, eroding basis ~3-5% per year — faster than most pipeline MLPs (2-4%) but slower than royalty MLPs like NRP (5-8%+). At this rate, a CQP investor could approach zero basis in approximately 7-10 years.

Four-Year Worked Example — 100 Units at $50

Purchase: 100 units at $50 = $5,000. After 4 years, IRS-adjusted basis drops to approximately $4,080 — an 18% decline. Broker still shows $5,000. If you sell at $59/unit ($5,900): broker calculates $900 gain, IRS expects $1,820 gain with substantial §751 ordinary income.

CQP K-1 Box-by-Box Walkthrough

Single K-1 with one EIN. Box 1: can show positive income more frequently than pipeline MLPs. Box 19A: ~$3.30/unit annually. Item K: significant liability share ($15B+ debt). Box 20 Codes Z & AE: §199A QBI data.

State Tax Filing for CQP Unitholders

CQP’s operations are concentrated in Louisiana (Sabine Pass) and Texas (no income tax). Most unitholders face a single state question: whether Louisiana allocation exceeds the filing threshold.

CQP in an IRA — Higher UBTI Risk

CQP carries higher UBTI risk than most MLPs. Positions worth $30,000+ may generate UBTI above the $1,000 threshold, requiring Form 990-T filing. A taxable account preserves the §199A deduction and basis step-up benefits.

Common CQP Mistakes

Confusing CQP (K-1) with LNG (1099-DIV). Underestimating basis erosion speed. Ignoring the variable distribution component. Not planning for outsized §751 recapture. Holding large CQP positions in an IRA without considering UBTI.

Enterprise Products (EPD) K-1 Guide — Traditional midstream comparison
Energy Transfer (ET) K-1 Guide — Three entities in one K-1
WES K-1 Guide — Another MLP with a recent major acquisition
PAA K-1 Guide — PAA/PAGP dual-structure confusion
NRP K-1 Guide — Royalty MLP with the fastest basis erosion
Why Your Broker’s MLP Cost Basis Is Wrong
Section 751 Recapture — Why part of your gain is ordinary income
MLP State Filing Requirements
MLPs in an IRA: The UBTI Problem
2025 K-1 Release Dates — Complete schedule
K-1 Basis Tracker — Free IRS worksheet calculator