Centrica announced a major agreement with Norwegian state energy giant Equinor on Thursday, to deliver an additional one billion cubic metres of gas supplies to the UK for each of the next three winters.
The British Gas owner said amid a “difficult” geopolitical and macroeconomic environment, the deal would provide further energy security for the UK.
It said the agreement would see Equinor, formerly known as Statoil, deliver sufficient gas to heat an additional 4.5 million homes over the next three winters.
Centrica would now buy a total of 10 billion cubic metres of gas per year from Equinor.
“This agreement is good news for our customers and the country,” said Centrica group chief executive Chris O’Shea,
“At a time when energy security is paramount, I’m pleased that we are able to do our bit to ease the pressure and provide some more certainty ahead of what may be a difficult winter.
“This major supply deal agreed today will help underpin British energy security over the next few years, and also reinforce our partnership with Norway as a key international energy ally.”
Secretary of state for business and energy, Kwasi Kwarteng, said that while “cheap renewables” ramped up and British nuclear was accelerated to boost the UK’s energy independence, natural gas would still be needed for “many decades to come”.
“With Russia’s criminal invasion of Ukraine, it is more important than ever that we source more of the gas we need domestically, but also from safe and reliable import partners while we transition.
“This major supply deal agreed today will help underpin British energy security over the next few years, and also reinforce our partnership with Norway as a key international energy ally.”
At 1108 BST, shares in Centrica were down 2.43% at 77.02p.
Reporting by Josh White at Sharecast.com.
