Centrica and Equinor have signed a landmark £20 billion agreement to supply five billion cubic metres of gas annually to the UK until 2035, reinforcing a partnership that dates back to 2005.

The deal comes as Norway remains a key supplier, providing over 50% of the UK’s imported gas last year — a significant increase from around a third in 2022. This new contract not only ensures ongoing energy security but also includes flexibility to transition to hydrogen, aligning with the UK’s growing clean energy ambitions.

Chris O’Shea, Centrica’s Group CEO, said:
“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.”

He added, “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 CEO Anders Opedal commented:
“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.”

However, the Climate Change Committee (CCC) warns that gas demand must dramatically decrease to meet the UK’s net-zero target by 2050. Currently, gas accounts for nearly 40% of the UK’s primary energy demand, a figure that needs to fall to under 15% within 25 years.

With around 70% of homes still using gas boilers and gas-fired power plants supplying a quarter of the UK’s electricity, the challenge remains to replace gas with cleaner alternatives while maintaining energy security.