Centrica secures UK winter gas supplies in Equinor deal
Centrica has inked a gas supply deal with Norway's Equinor to source an additional 1bn m3 of gas for each of the next three winters, shoring up UK energy security with sufficient gas to heat 4.5mn homes, the companies said on June 16.
The UK already gets around a third of its gas requirements from Norway, through subsea interconnectors that run to Blyth in Northumberland and the Easingham gas terminal in Yorkshire.
Norwegian gas is relatively carbon efficient, with industry figures indicating it produces fewer emissions than domestic UK supplies. Equinor typically serves around 20 to 22bn m3 of gas each year, enough to cover more than 25% of UK gas demand.
Company officials say the new deal underscores the strategic importance of the Norwegian relationship to UK energy security. Centrica owns the UK's biggest gas utility British Gas, responsible for serving more than 8mn domestic and business customers.
Helge Haugane, senior vice president for gas and power, said: "In a period with a challenging geopolitical and macroeconomic environment with strong demand for natural gas, we at Equinor are doing what we can to export as much gas as possible to the market.
"Equinor is proud to be a long-term reliable energy partner with both Centrica and the UK, and I am very happy that through this agreement we are able to contribute to the UK securing further energy supply for the coming winters."
Neither Equinor nor Centrica disclosed the price of the contract. UK gas futures for delivery in Q3 2022 were priced at £2.904 ($3.52)/therm, at the start of trading June 16.
Chris O'Shea, chief executive at Centrica, said: "This agreement is good news for the country and for our customers.
"At a time where energy security is paramount, I’m delighted 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 important agreement with Equinor both underpins vital domestic supplies and strengthens the strategic relationship between the UK and Norway."