Equinor and Centrica have signed a long-term gas sales agreement of 55 TWh of natural gas per year (around 5 billion cubic meters - bcm) for a period of 10 years starting 1 October 2025 at terms reflecting market prices. The total contract value would be around £20 billion assuming current prices.
'I am very pleased to strengthen the energy partnership with the UK and our longstanding partner and customer Centrica. This agreement will continue to support the UK’s energy security with reliable gas supplies from the Norwegian continental shelf. The flexibility that natural gas offers will play a key role in enabling further development of renewable power and decarbonisation in the UK', says Equinor’s president and CEO Anders Opedal.
Chris O'Shea (left), Group Chief Executive of Centrica, and Equinor’s president and CEO Anders Opedal. Photo: Centrica
For nearly 50 years, Equinor and partners have developed the Norwegian Continental Shelf to be the largest and most reliable provider of energy to Europe. Britain currently imports nearly 2/3 of its gas requirements from Norway, with Equinor being the major supplier. The annual volumes under this agreement will cover nearly 10% [1] of total annual UK gas demand which makes the agreement among the largest in Equinor bilateral portfolio.
'The UK and the North Sea is a core area in our long-term ambitions to remain a supplier of reliable energy and to help decarbonise societies and industries. The new gas sales agreement with Centrica will be a key element in this. Energy security and decarbonisation must go hand in hand, and I am proud that Equinor is actively delivering both', says Equinor’s UK Country Manager Alex Grant.
Beyond investments in the UK’s oil and gas production, Equinor already operates three offshore wind farms at Sheringham Shoal, Dudgeon and Hywind Scotland, the world’s first floating offshore wind farm. Dogger Bank is under development and will be the world's largest offshore windfarm once completed. Together with partners Equinor is also developing the UK’s first CO2 transport and storage project and a gas power plant with CO2 capture.
Chris O'Shea, Group Chief Executive of Centrica, commented: '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. The enduring partnership between Centrica and Equinor exemplifies the strong and strategic relationship between the UK and Norway and I’m immensely proud that we’ve agreed this deal.
'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. The deal represents a significant investment in the UK’s future, showing that Centrica will make bold investments that drive forward the energy transition while delivering value for our shareholders. We will continue to focus on further improving energy security by working with the UK Government to ensure the right levels of gas storage are in place to complement this landmark gas importation agreement.'
[1] Total UK demand in 2024 at 55.8 bcm
Source: Equinor
