A major new energy agreement between Norway's Equinor and UK-based Centrica is set to reinforce the United Kingdom’s energy security for the next decade. Under the GBP 20 billion deal, Equinor will supply Centrica with 55 terawatt hours (TWh) of natural gas annually starting in October 2025 equivalent to around 10% of the UK’s yearly gas consumption.

Long-Term Agreement to Secure Gas Supplies

The ten-year contract, valued at approximately GBP 20 billion based on current market prices, will provide around 5 billion cubic meters of natural gas per year. The gas will be sourced from the Norwegian Continental Shelf, continuing a long-standing energy partnership between the two nations. Currently, Norway supplies about two-thirds of the UK’s imported gas, with Equinor as the principal supplier.

Chris O’Shea, Group Chief Executive of Centrica, described the agreement as a “significant investment in the UK’s future,” emphasizing natural gas as a vital transition fuel on the path to a low-carbon economy. “This deal not only helps secure reliable energy but also underpins the growth of a future hydrogen market,” O’Shea said.

Supporting Decarbonization Efforts

The contract arrives amid growing pressure to balance energy reliability with climate commitments. Equinor’s President and CEO Anders Opedal noted that natural gas will continue to play a key role in facilitating the growth of renewable energy. “Its flexibility is essential for supporting renewables and accelerating decarbonization,” Opedal stated.

Equinor is already heavily invested in several UK energy projects aimed at reducing carbon emissions. These include the development of Dogger Bank "the world’s largest offshore wind farm" and the UK’s first carbon dioxide transport and storage network. The company is also advancing a gas-fired power plant equipped with carbon capture technology.

Alex Grant, Equinor’s UK Country Manager, reinforced the company’s dual focus on energy security and environmental responsibility. “Delivering both secure energy and decarbonization is not a choice we must do both,” he said.

Strategic Implications

The deal underscores the UK’s strategy of securing long-term, stable energy sources amid fluctuating global markets and the ongoing transition away from coal and other high-emission fuels. With natural gas playing a bridging role, partnerships like this are expected to shape the energy landscape over the next decade.

The agreement is effective from October 2025 and reflects commercial terms aligned with current market conditions.

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