Centrica and Equinor have sealed a £20 billion deal to deliver gas to the UK, securing five billion cubic metres annually until 2035.
The 10-year contract extends a partnership dating back to 2005, supplying Norwegian gas to the UK.
In 2024, we imported 66.2% of gas, with Norway providing 50.2% of that total — up from around a third in 2022. The deal underlines Norway’s crucial role in UK energy and price security.
The contract also offers flexibility to replace natural gas with hydrogen in future, boosting the UK’s hydrogen ambitions.
Chris O’Shea, Centrica’s Group Chief Executive, said: “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.”
He 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.”
Equinor’s president and CEO Anders Opedal said: “For nearly 50 years, we have supported the UK’s energy security with reliable gas supplies. In addition, we have advanced offshore wind and pioneered decarbonisation solutions.
“We are pleased to strengthen the energy partnership further through a new gas sales agreement with our longstanding customer and partner Centrica.”
But the Climate Change Committee (CCC) warns gas demand must plunge to meet net zero by 2050.
Gas currently accounts for 720 terawatt hours or almost 40% of the UK’s primary energy demand. The CCC says this must fall to 168TWh or less than 15% by 2050 to stay within carbon budgets.
Today, about 70% of homes use gas boilers and gas-fired power plants supply around a quarter of electricity.
The challenge will be to replace this with cleaner alternatives while maintaining energy security.
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