Russian gas company OAO Gazprom (GAZP.RS) and French utility Electricite de France SA (EDF.FR) have signed an agreement to swap natural gas between the U.S. and European markets, Gazprom said Tuesday.
Under the deal, which was signed between EDF Trading and Gazprom Marketing & Trading Ltd., Electricite de France will deliver 500,000 million cubic meters of natural gas a year to Gazprom in the U.S. for the next five years.
In return, Gazprom will supply the same volume to Electricite de France in the U.K.
"This agreement enables us to ramp up our U.S. operation and provides us with gas supplies in areas of strategic importance," said Vitaly Vasiliev, Chief Executive of Gazprom Marketing & Trading Ltd.