Britain's Centrica Signs £20 Billion Gas Supply Deal with Norway's Equinor

British Gas owner Centrica has secured a significant 10-year deal worth over £20 billion with Norway's Equinor to supply 5 billion cubic meters of gas annually starting in 2025, enough to power about five million UK homes. This agreement, running until 2035, underscores the vital role of natural gas as a transition fuel in the UK's energy strategy, even as the country aims to reduce fossil fuel reliance to meet climate goals. Norway currently supplies around half of the UK's gas imports, a figure that increased after Russia's invasion of Ukraine disrupted European energy markets. The contract also includes provisions to potentially transition from natural gas to hydrogen in the future, supporting the UK's growing hydrogen economy. Despite a significant decline in domestic fossil fuel production, the UK continues to rely heavily on imports, with gas-fired power plants supplying roughly a quarter of the country's electricity. Centrica emphasized that this deal not only improves UK energy security but also represents a strategic investment in the energy transition.