Centrica and Equinor agree major new deal to bolster UK energy security
Published by Emilie Grant,
Editorial Assistant
Hydrocarbon Engineering,
Centrica and Equinor have announced a £20 billion plus agreement to deliver gas to the UK. The new deal will see Centrica take delivery of five billion m3 of gas per year to 2035.
The expansive ten-year deal continues a long-term relationship with Equinor that dates back to 2005 bringing gas from Norway to the UK.
In 2024, the UK imported almost two-thirds (66.2%) of its gas demand, with 50.2% of the total imports coming from Norway.1 This is an increase from the UK importing around a third of its gas requirements from Norway in 20222 and underlines the strategic importance of the Norwegian relationship to UK energy and price security.
The contract also allows for natural gas sales to be replaced with hydrogen in the future, providing further support to the UK’s hydrogen economy.
Chris O'Shea, Group Chief Executive of Centrica said: “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 commented: “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.”
1https://www.gov.uk/government/statistics/gas-section-4-energy-trends.
2https://www.centrica.com/media-centre/news/2022/centrica-secures-uk-winter-gas-supplies/.
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/10062025/centrica-and-equinor-agree-major-new-deal-to-bolster-uk-energy-security/
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