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Norway’s state-owned energy giant Equinor has inked a multi-year gas sales agreement with Britain’s Centrica, which is expected to strengthen energy security in the United Kingdom (UK). The ten-year contract, with a total value of around £20 billion (about $27.14 billion) based on current prices, will see Equinor provide Centrica with 55 TWh of natural gas per year, or around 5 billion cubic meters (bcm), starting from October 2025 at terms reflecting market prices. The UK currently imports nearly 2/3 of its gas requirements from Norway, with Equinor being the major supplier. Chris O’Shea, Group Chief Executive of Centrica, emphasized: “Equinor is a valued partner, and this landmark agreement underscores the vital role that natural gas plays as a transition fuel as we navigate towards a low carbon energy future. The enduring partnership between Centrica and Equinor exemplifies the strong and strategic relationship between the UK and Norway.” The Norwegian giant claims that annual volumes under this agreement will cover nearly 10% of total annual UK gas demand, which is interpreted to make the deal among the largest in the firm’s bilateral portfolio. O’Shea added: “Over the last few years, we’ve seen first-hand how important energy security is. Today’s deal not only ensures the UK’s energy security has improved but also paves the way for a burgeoning hydrogen market. The deal represents a significant investment in the UK’s future, showing that Centrica will make bold investments that drive forward the energy transition while delivering value for our shareholders. “We will continue to focus on further improving energy security by working with the UK government to ensure the right levels of gas storage are in place to complement this landmark gas importation agreement.” |
