Equinor Signed Natural Supply Contract with Centrica

SEATTLE (Oil Monster): Equinor announced that it has entered into a natural gas supply contract with Centrica. The contract worth approximately $27 billion will supply the UK with natural gas over the period of next ten years. This marks the continuation of the long-standing supply relationship between Equinor and the UK.

Under the terms of the agreement, a total of 55 terawatt-hours (TWh) of natural gas will be supplied every year, which is equivalent to around five billion cubic metres (bcm), effective October this year. The contract terms will be based on prevailing market prices. Also, the contract terms provides provision for a potential shift from natural gas to hydrogen in the future.

Commenting on the milestone agreement, Anders Opedal, CEO, Equinor said that the company is pleased to strengthen the energy partnership with the UK and its long-standing partner and customer Centrica. The agreement will ensure reliable gas supplies from the Norwegian Continental Shelf, thus supporting the UK’s energy security, he added.

According to 2024 statistics, imports accounted for 66.2% of the total UK natural gas requirement. The country sourced 50.2% of those imports from Norway. The imports from Norway recorded significant increase during the year when compared with 2022, when it had accounted for only a third of UK’s imports.