UPDATE 1-Gazprom, EDF clinch US-UK long-term gas swap

* The deal allows Gazprom to expand in the U.S.

* Companies will swap with 0.5 bcm of gas a year

(Adds details, background)

MOSCOW, Oct 20 (Reuters) - Russia's Gazprom (GAZP.MM) and France's EDF (EDF.PA) clinched a gas swap deal which will allow the Russian group, the world's largest gas producer, to further penetrate U.S. markets, the two companies said on Tuesday.

Gazprom is aiming for 10 percent of the U.S. natural gas market, while EDF is close to reaching a deal with the Russian state-run company to take a minority stake in its South Stream gas pipeline project. [ID:nN08525027] [ID:nLG256210]

EDF agreed to deliver 0.5 billion cubic metres of gas per year (about 50 million cubic feet per day) to Gazprom in the United States for the next five years in exchange for the same volumes that Gazprom would deliver to EDF in the United Kingdom.

"This agreement enables us to ramp up our U.S. operation and provides us with gas supplies in areas of strategic importance," the statement quoted Vitaly Vasiliyev, chief executive of Gazprom Marketing and Trading, as saying.

The statement also quoted John Rittenhouse, CEO of EDF Trading, as saying: "We are looking forward to expanding our relationship with Gazprom. This agreement will help extend the coverage of our gas business beyond Europe..."

Earlier this month, the Gazprom unit said it had begun trading and marketing natural gas in North America, the first foray into the United States by a Gazprom group company. [ID:nL1710730]

"The gas swap transaction with EDF Trading announced today will further strengthen Gazprom Marketing and Trading's supply foundation to build its marketing and trading operations in the U.S.," the company said.

Gazprom's Deputy Chief Executive Alexander Medvedev also has said the company is aiming for a 10 percent share of the U.S. natural gas market within five years. (Editing by David Holmes)