Centrica, the owner of British Gas, and Norwegian energy giant Equinor have announced a landmark agreement worth more than £20 billion to deliver natural gas to the United Kingdom over the next decade, in a move hailed as critical for the nation’s energy security and transition to a low-carbon future.
Under the terms of the deal, Centrica will receive five billion cubic metres (bcm) of gas per year from Equinor until 2035, covering nearly 10% of the UK’s annual gas demand – enough to supply approximately five million homes.
The contract, which begins on 1 October 2025, continues a longstanding partnership between the two companies that dates back to 2005, and replaces a previous ten-year supply agreement set to expire this year.
The UK currently imports almost two-thirds of its gas requirements, with about half of those imports coming from Norway.
This dependency has grown in recent years, underscoring the strategic importance of reliable Norwegian supplies as domestic North Sea production declines and the UK seeks to reduce its reliance on fossil fuels in line with climate targets.
Chris O’Shea, Group Chief Executive of Centrica, emphasised the significance of the agreement: “Over the last few years, we’ve seen first-hand how important energy security is.
“Today’s deal not only ensures the UK’s energy security has improved but also paves the way for a burgeoning hydrogen market.
“The deal represents a significant investment in the UK’s future, showing that Centrica will make bold investments that drive forward the energy transition while delivering value for our shareholders.”
Anders Opedal, President and CEO of Equinor, highlighted the company’s nearly 50-year history of supplying the UK with gas and its commitment to supporting the UK’s energy transition: “We are pleased to strengthen the energy partnership further through a new gas sales agreement with our longstanding customer and partner Centrica.
“The flexibility that natural gas offers will play a key role in enabling further development of renewable power and decarbonisation in the UK.”
The contract includes provisions for the future substitution of natural gas with hydrogen, aligning with the UK’s ambitions to develop a hydrogen economy and decarbonise its energy system.
Both companies stressed the role of natural gas as a “transition fuel” that will support the growth of renewables and the shift to a low-carbon energy mix.
Equinor is already a major investor in UK renewable energy, operating several offshore wind farms and developing projects in carbon capture and storage, further cementing the UK-Norway energy partnership as a cornerstone of Britain’s evolving energy landscape.
This £20 billion deal between Centrica and Equinor represents one of the largest bilateral gas agreements in the UK’s history.
It secures a significant portion of the nation’s gas needs for the next decade, supports energy security amid global uncertainties, and provides a pathway for future decarbonisation through hydrogen and renewables
