CF Industries signs deal for Peru gas supply

LIMA, Oct 13 (Reuters) - CF Industries (CF.N) signed a supply contract on Tuesday that will provide it with natural gas from the Camisea gas consortium for a petrochemical plant CF plans to build in Peru.

The plant, to be located south of the capital of Lima, would produce 910,000 tonnes of ammonium nitrate a year and require estimated investments of between $1 billion and $2 billion.

The Camisea consortium is led by Argentina's Pluspetrol and other members include Repsol-YPF (REP.MC), U.S. firm Hunt Oil and South Korea's SK Energy 09677.KS.

"This marks the start of a new era for the petrochemical industry in Peru," said Roberto Ramallo, the head of Pluspetrol in Peru.

Peru is working to persuade foreign companies to invest billions of dollars to develop petrochemical plants which turn natural gas into ammonium nitrate used to make explosives, fertilizers and ethylene for plastics.

The government of President Alan Garcia was forced in August to try to guarantee domestic gas supplies after critics said plans to export the fuel could lead to local shortages. (Reporting by Patricia Velez; editing by Jim Marshall)