UPDATE 1-Cheniere IPO raises $283.5 mln, top of range

(Adds market capitalization, details)

NEW YORK, March 20 (Reuters) - Cheniere Energy Partners, a limited partnership formed by Cheniere Energy Inc. (LNG.A), on Tuesday raised $283.5 with an initial public offering that was priced at the top of a forecast range.

The 13.5 million common unit offering, raised from an initial 12.5 million units, sold for $21 per unit, compared with a $19 to $21 forecast range, according to an underwriter.

The partnership sold 5.2 million units and Cheniere LNG Holdings LLC, an affiliate, sold 7.3 million shares, according to a document filed with the U.S. Securities and Exchange Commission.

The offering price gives the company an initial market capitalization of about $555 million.

Based in Houston, Texas, Cheniere Energy Partners plans to use net proceeds to purchase U.S. treasury securities to fund a distribution reserve to pay an initial quarterly distribution on all common units and related distributions to the general partner, the SEC filing said.

Through its subsidiary, Sabine Pass LNG, Cheniere Energy Partners will develop, own and operate the Sabine Pass LNG receiving terminal currently under construction in western Cameron Parish, Louisiana.

The terminal, which began construction in March 2005, will be the largest LNG receiving terminal in North America, according to the filing.

Led by Citigroup, Merrill Lynch & Co. and Credit Suisse, underwriters have the option to purchase more than 2 million common units to cover overallotments, according to an underwriter.

The company has been approved to list on the American Stock Exchange under the symbol "CQP." (CQP.A)