UPDATE 1-Agrium says may have to write off Egypt project

(Adds details. In U.S. dollars)

WINNIPEG, Manitoba, June 20 (Reuters) - Agrium Inc (AGU.TO: Quote, Profile, Research) may have to write off its $280-million investment in a nitrogen plant in Egypt after the Egyptian government voted to relocate the project, the world's third-largest nitrogen producer said on Friday.

Agrium said moving the $1.4 billion project was not a viable option. The Calgary, Alberta-based company said it would try to recover its losses, but may face write-offs in the second quarter.

The move comes as world demand for grain and tight supplies of fertilizer have pushed up prices for crop nutrients like nitrogen to record levels.

Agrium stock was down 11 cents at C$110.05 at the Toronto Stock Exchange on Friday.

The Egyptian parliament recommended on Thursday that Agrium move the plant, located on the country's north coast, because of local concerns about how it would affect tourism and the environment.

Agrium said the plant was safe and met all the requirements of the Egyptian government. Its partners on the project were three state-owned utilities and Saudi-based Arab Petroleum Investments Corporation.

Agrium said it would evaluate two options presented by Egypt's Prime Minister Ahmed Nazif.

Nazif offered a buyout of Agrium's investment in the project, or to transfer a nearby state-owned nitrogen plant to Agrium, the company said.

($1=$1.02 Canadian) (Reporting by Roberta Rampton; editing by Janet Guttsman)