UPDATE 2-Cameco CEO projects big rise in uranium output

* CEO sees dramatic increase in worldwide demand

* Cameco production to rise 75 pct in 10 years

* CEO confident of supply agreement with China (Adds CEO comments on China, Port Hope, Centerra; in U.S. dollars unless noted)

By Rod Nickel

SASKATOON, Saskatchewan, May 27 (Reuters) - Cameco Corp (CCO.TO) will have to expand uranium production "dramatically" over the next decade in order to meet rising demand for the nuclear fuel, the company's chief executive said on Wednesday.

"The uranium industry is capable of responding to the growth in demand and Cameco will play a major role," President and CEO Jerry Grandey told the company's annual meeting.

In 10 years, Cameco will go from producing 20 million pounds annually to 35-36 million, Grandey told reporters. That will come either through the expansion of existing projects or by opening new mines.

The company, the world's biggest producer, projects 2 billion pounds of uranium will be needed over the next decade to fuel nuclear generating stations.

Rising world demand stems from a growing hunger for electrical power and the awareness of nuclear energy's low greenhouse gas emissions, Grandey said. He noted the U.S. government's continued financial backing for new nuclear plants under President Barack Obama.