Centrica in £20bn deal to take gas from Norway – Daily Business

British Gas owner Centrica has agreed a ten-year gas deal worth £20 billion with Norwegian energy company Equinor which will underline the UK’s continued reliance on fossil fuels.

Under the contract Equinor will supply five billion cubic metres of gas every year until 2035. It equates to about 10% of the UK’s gas requirements through to the period when the transition from fossil fuels is due to take place.

About 70% of UK homes are still heated using gas which also powers about a quarter of the country’s electricity supply. The UK imported almost two-thirds of its gas demand last year, with half of imports coming from Norway.

Equinor and Centrica have been working together since 2005 and supplies from Norway have increased since Russia’s invasion of Ukraine in 2022. 

Chris O’Shea, Centrica’s chief executive, said: “Most people don’t appreciate just how much we rely on our friends in Equinor, friends in Norway, for energy security in the UK.”

Anders Opedal, chief executive of Equinor, formerly known as Statoil, said: “For nearly 50 years, we have supported the UK’s energy security with reliable gas supplies.

“We are pleased to strengthen the energy partnership further through a new gas sales agreement with our longstanding customer and partner Centrica.”

The deal came ahead of a speech from Rain Newton Smith, chief executive of the Confederation of British Industry, who called on the Government to come up with a “serious plan” to cut energy costs and invest in energy security.