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Centrica secures £20bn gas supply deal with Equinor to pave way for hydrogen

By securing five billion cubic metres of annual gas from Norway until 2035 with a clause to switch to emissions-free hydrogen, the deal underpins the UK’s net zero transition.

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Equinor’s deal with Centrica will supply enough gas for five million homes

Overview

  • Under a £20 billion deal starting this winter, Centrica will import five billion cubic metres of gas annually from Equinor until 2035.
  • The contract includes a provision allowing Centrica to swap future gas imports for emissions-free hydrogen from Equinor’s planned UK hydrogen plant.
  • Norway has supplied nearly two-thirds of Britain’s gas needs over the past 50 years, and this agreement reinforces their long-standing energy partnership.
  • The deal is designed to bolster the UK’s energy security by guaranteeing supply as North Sea production declines.
  • Government net zero targets call for 600,000 electric heat pumps installed each year and gas-fired plants limited to 5% usage by the 2030s, while the Climate Change Committee forecasts a steep fall in gas demand by 2050.