UPDATE 2-Gas Natural sees Fenosa integrated in September

* Sees Fenosa integrated in September

* To consolidate 95 pct of Fenosa from May

* Sees 300 mln eur of extra tax savings from Fenosa deal

* Q1 net profit up 5 pct to 353 mln euros, beats estimates

* Shares rise 5.14 percent

(Adds Fenosa integration, cost savings, CEO comments)

By Jonathan Gleave

MADRID, May 6 (Reuters) - Spain's Gas Natural (GAS.MC) is on
track to integrate Union Fenosa UNF.MC in September but will
consolidate its 95 pct stake in the power company from May,
chief executive Rafael Villaseca said on Tuesday.

Investors will have to wait until the end of 2009 or early
2010 for the strategic plan of the new Gas Natural, but can
expect new cost savings forecasts sooner, the CEO told analysts
after the gas group's forecast-beating first quarter results.

Gas Natural added a new estimate of savings to its
investment plan of about 100 million euros and hiked its
estimates for tax savings to about 800 million from the 500
million Villaseca announced in June 2008.

Gas Natural's earnings before interest, tax, depreciation
and amortisation (EBITDA) increased 0.8 percent to 732 million
euros ($980 million), beating forecasts for 700 million.

Net profit rose 5 percent to 353 million euros, also beating
forecasts for 330 million, as strength from the company's gas
business offset weak Spanish electricity operations.

Gas Natural's wide network of wholesale and retail gas
clients, which enabled the company to boost sales in France and
the United States this year to offset weak demand in other
markets, has been a main driver of the company's solid first
quarter results, the CEO said.

It also benefitted from stable revenue growth in regulated
gas distribution as well as in gas extraction and transport.

"International gas trading and distribution in Spain have
performed much better than expected, regulatory changes in June
seem to have had a surprisingly positive effect on the
business," an analyst at a Madrid brokerage said.

The acquisition of Fenosa and its debt will take Gas
Natural's debt up to about 18 billion euros at the end of 2009
from 8.46 billion euros at the end of March, a Gas Natural
executive said.

Villaseca said Gas Natural's revision of the 3.7 gigawatts
of Mexican generation assets it owns after buying Fenosa should
not be necessarily seen as a precursor to a large sale of the
assets.

"All options are open, from total or partial sale of assets,
to a stockmarket listing or the selling of a minority stake,"
Villaseca said.

The CEO noted that any decision to sell assets in Mexico
could form part of the 3 billion euros of divestments planned to
partly finance the gas group's 16.2 billion euro acquisition of
Fenosa.

At 1126 GMT Gas Natural shares surged 5.14 percent to 12.69
euros, outperforming a 0.60 percent fall in the Dow Jones
European Utility index.
($1=.7467 Euro)
(Reporting by Jonathan Gleave; Editing by Rupert Winchester)