£20 billion gas deal gives UK’s energy security a shot in the arm

Equinor, a state-owned energy company from Norway, has recently signed a significant gas sales contract with Centrica in the UK. This deal, valued at about £20 billion, is set to enhance the UK’s energy security. Under this ten-year agreement, Equinor will supply Centrica with 55 TWh of natural gas annually, starting from October 2025, reflecting current market prices. This partnership highlights the importance of natural gas in the transition to a low-carbon energy future, as stated by Chris O’Shea, Centrica’s Group Chief Executive.

The yearly gas volumes covered by this deal are expected to meet around 10% of the UK’s total gas demand. In addition to boosting energy security, the agreement also sets the stage for the development of a growing hydrogen market. Equinor’s commitment to the UK’s energy security is further demonstrated by its investments in offshore wind farms and future projects like the Dogger Bank wind farm.

Anders Opedal, Equinor’s President and CEO, emphasized the role of natural gas in supporting the UK’s energy security and enabling the growth of renewable energy sources. The company’s focus on energy security and decarbonization aligns with its long-term goals of providing reliable energy and promoting sustainability. Equinor’s collaboration with Centrica underscores the importance of balancing energy security with environmental objectives.