Oslo, Norway — Norwegian energy firm Equinor said Thursday it had signed a 10-year contract to supply gas to British firm Centrica in a deal worth around $27 billion.
Equinor will provide around five billion cubic meters of natural gas per year to Centrica, covering nearly 10 percent of Britain’s demand for the fuel.
“This agreement will continue to support the UK’s energy security with reliable gas supplies from the Norwegian continental shelf,” Equinor chief executive Anders Opedal said in a statement.
Natural gas accounts for 38 percent of Britain’s total energy supply, according to the International Energy Agency, making it the top fuel source, and the nation depends heavily on imports.
Russia’s invasion of Ukraine and Western sanctions roiled energy markets, sparking a rise in prices that British consumers are still struggling with.
Centrica owns British Gas, the country’s largest gas supplier.
“Over the last few years, we’ve seen first-hand how important energy security is,” Centrica chief executive Chris O’Shea was quoted as saying in a statement.
“Today’s deal not only ensures the UK’s energy security has improved but also paves the way for a burgeoning hydrogen market,” he added.
The two companies said that natural gas has an important role to play as a transition fuel as countries shift to renewables due to its flexibility.
