Centrica, owner of British Gas, has signed a £20bn, 10-year agreement with Norway's state energy company Equinor to supply 5bn cubic meters of gas annually to the UK, meeting nearly 10% of the UK's needs. The deal, starting this winter until 2035, includes a clause for swapping gas imports for emissions-free hydrogen, aligning with the UK's net-zero agenda.
British Gas owner strikes £20bn gas deal with Norway’s state energy company
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TL;DR: Key points with love ❤️Centrica, owner of British Gas, has signed a £20bn, 10-year agreement with Norway's state energy company Equinor to supply 5bn cubic meters of gas annually to the UK, meeting nearly 10% of the UK's needs. The deal, starting this winter until 2035, includes a clause for swapping gas imports for emissions-free hydrogen, aligning with the UK's net-zero agenda.
Trending- 1 Last 50 years: Norway has been one of Britain's largest sources of imported gas.
- 2 2015: Centrica and Equinor struck a previous decade-long agreement for 7.3 bcm/year.
- 3 After Russia’s invasion of Ukraine: Centrica agreed to a top-up deal for over 10 bcm/year.
- 4 Last year (implied 2024): UK's demand for gas fell to record lows.
- 5 2029 (projected): Equinor's "pathfinder" hydrogen project at Aldbrough could be operational.
- 6 June 5, 2025: Centrica and Equinor strike new £20bn gas deal.
- 7 This winter (2025-2026): New gas supply agreement begins.
- 8 2035: New gas supply agreement concludes.
- 9 2050: UK aims for net-zero economy.
- Secures nearly 10% of UK gas needs for a decade
- Supports UK's net-zero agenda
- Paves way for hydrogen market
- Reduces reliance on gas over time
What: Centrica (owner of British Gas) signed a £20bn, 10-year gas supply deal with Equinor (Norway's state energy company).
When: Signed on June 5, 2025; supply starts this winter and runs until 2035.
Where: UK (recipient), Norway (supplier), Humber (potential hydrogen projects), East Yorkshire (Aldbrough gas storage facility).
Why: To secure UK energy supplies, support the transition to a low-carbon future, and pave the way for a hydrogen market.
How: Centrica will buy 5bn cubic meters of gas annually from Equinor at prevailing market rates, with an option to swap for hydrogen.