Equinor and Centrica have signed long-term gas sales agreement of 55 TWh of natural gas per year, or around 5 billion cubic meters – bcm, for a period of 10 years, to be delivered to U.K.

Starting October 1, 2025 at terms reflecting market prices, the total contract value would be around $27 billion (£20 billion) assuming current prices.

For nearly 50 years, Equinor and partners have developed the Norwegian Continental Shelf to be the largest provider of energy to Europe.

Britain currently imports nearly 2/3 of its gas requirements from Norway, with Equinor being the major supplier.

The annual volumes under this agreement will cover nearly 10% of total annual U.K. gas demand, making the agreement among the largest in Equinor bilateral portfolio.

“The U.K. and the North Sea is a core area in our long-term ambitions to remain a supplier of reliable energy and to help decarbonize societies and industries. The new gas sales agreement with Centrica will be a key element in this. Energy security and decarbonization must go hand in hand, and I am proud that Equinor is actively delivering both,” said Alex Grant, Equinor’s U.K. Country Manager.

“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 U.K.’s future, showing that Centrica will make bold investments that drive forward the energy transition while delivering value for our shareholders. We will continue to focus on further improving energy security by working with the UK Government to ensure the right levels of gas storage are in place to complement this landmark gas importation agreement,” added Chris O'Shea, Group Chief Executive of Centrica.