MADRID - Spanish gas and power group Naturgy is in talks with Morocco and Algeria over potentially extending a recently-expired contract to supply gas through the Maghreb-Europe pipeline, global head of controlling Jon Ganuza said on Wednesday.

"We are in talks with Algeria and Morocco to see if we can extend the concession with EMPL," Ganuza told analysts on a conference call, referring to the duct that runs from Algeria via Morocco to Spain.

"It is something that would be sensible for all the parts and could create value for all," Ganuza said, but added that the end of the contract was known about well in advance so "we do not need those volumes currently for this winter".

"If we do not meet a satisfactory agreement that is our base case scenario," Ganuza added. "If we were to be able to reach any agreement with Algeria that would be at most an upside."

(Reporting by Isla Binnie, Editing by Louise Heavens) ((isla.binnie@thomsonreuters.com; +39 06 8522 4392; Reuters Messaging: isla.binnie.thomsonreuters.com@reuters.net))