Centrica and Equinor's 20-Billion-Pound Deal Secures UK's Energy Future

Centrica, owner of British Gas, and Norwegian energy giant Equinor have finalized a significant 10-year agreement valued at over 20 billion pounds. The deal is set to secure gas supplies for the United Kingdom starting in 2025, with both companies confirming the arrangement on Thursday.

The partnership will see Equinor supply five billion cubic metres of gas annually until 2035, covering approximately 10% of Britain's gas demand and providing energy for about five million homes. This new contract replaces a previous 10-year supply agreement that began in 2015. Britain's reliance on imported gas remains substantial, with Norway being a major supplier.

The ongoing conflict involving Ukraine and Western sanctions on Russia have impacted energy markets, resulting in heightened prices affecting British consumers. As the UK moves towards its climate goals, the contract with Equinor includes options to transition from natural gas to hydrogen, representing a forward-thinking approach to future energy needs.

(With inputs from agencies.)