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Centrica and Equinor have struck a deal to deliver an additional 1 billion cubic meters (bcm) of gas to the UK for each of the next three winters.
Britain currently imports around a third of its gas supplies from Norway and Centrica said the deal announced on Thursday (16 June) “underlines the strategic importance of the Norwegian relationship to UK energy security”.
The deal adds to the firm’s existing bilateral contract with Equinor and will see Centrica buy a total of 10bcm of gas per year from the Norwegian state-owned energy company.
Centrica said the agreement will provide enough gas to heat an additional 4.5 million homes.
Centrica chief executive Chris O’Shea said: ‘‘This agreement is good news for our customers and the country. At a time when energy security is paramount, I’m pleased 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.
“As Britain’s biggest gas and electricity supplier we take our responsibility to over 8 million British Gas domestic and business customers very seriously. This important agreement with Equinor underpins vital domestic supplies and strengthens the strategic relationship between the UK and Norway.’’
Business and energy secretary Kwasi Kwarteng said: “While we ramp up cheap renewables and accelerate British nuclear to boost our greater energy independence, we will still need natural gas for many decades to come.
“With Russia’s criminal invasion of Ukraine, it is more important than ever that we source more of the gas we need domestically, but also from safe and reliable import partners while we transition. We cannot, and will not, turn off the taps overnight.
“This major supply deal agreed today will help underpin British energy security over the next few years, and also reinforce our partnership with Norway as a key international energy ally.”
Helge Haugane, senior vice president gas and power, Equinor, said: “Equinor is proud to be a long-term energy partner with the UK and Centrica, and I am very happy that through this agreement we are able to contribute to securing further energy supply for the coming winters.”
“We are committed to further strengthen the strategic relationship with Centrica and the UK, both in supplying oil and gas and by playing a leading role in delivering on the UK’s decarbonisation ambitions,” Haugane added.
Earlier this week EDF announced that it has agreed to defer the closure of two units at its West Burton A power station by a further six months to 31 March next year in response to the government’s request to keep them available over the coming winter.
Kwarteng said of the closure on Twitter: “In May, I asked National Grid to explore keeping 3 coal power stations open this winter, if needed.
“With uncertainty in Europe following the invasion, it’s right we explore all options to bolster supply. I’m pleased EDF has today confirmed West Burton will remain online.”
He added that discussions with two other plants are “ongoing”.
“If we have available back-up power, let’s keep it online just in case. I’m not taking chances. For our long-term energy security, we’re accelerating renewables and nuclear – while maximising North Sea oil and gas production,” he said.
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