© Supplied by Centrica 
Norwegian energy company Equinor has agreed to supply natural gas to the UK until 2035 through a £20 billion deal with British utility Centrica.
In a statement, Centrica said it had secured the supply of five billion cubic metres (Bcm) of gas per year for the ten years to 2035.
The UK has relied on Norwegian gas imports to meet an increasing volume of domestic demand since the onset of the energy crisis following Russia’s invasion of Ukraine.
Last year, the UK met almost two thirds of its domestic gas demand with imports, though supply was down by 7.9% compared to 2023. Approximately half of total gas imports came from Norway, up from one third three years ago.
The latest supply contract will also allow for natural gas sales to be replaced with hydrogen at some point in the future, Centrica said.
Following the energy crisis, Centrica reopened the Rough gas storage facility in the North Sea to bolster UK gas supplies. But in April, the energy company stopped refilling the gas facility after warning that it was making a financial loss.
Centrica is seeking to redevelop the Rough facility so it can store hydrogen, a low-carbon fuel that can be combusted without producing carbon, as well as natural gas.
The utility has said it will invest £2bn of its capital in the redevelopment if it secures a cap-and-floor agreement to stabilise the price of hydrogen.
Energy Voice reported earlier this year that UK energy secretary Ed Miliband had broached talks with the energy company around providing an incentive for the £2bn redevelopment.
Centrica chief executive Chris O’Shea said: “This landmark agreement underscores the vital role that natural gas plays as a transition fuel as we navigate towards a low-carbon energy future.
“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.”
