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Centrica, a British company, signs a $27 billion gas deal with Equinor in Norway

British Energy's Centrica signed a 10-year contract worth over 20 billion pounds ($27.07billion) with Norwegian producer Equinor to receive gas, the companies announced on Thursday.

Gas-fired power stations account for about a quarter (70%) of Britain's electricity.

In a press statement, Centrica CEO Chris O'Shea stated that "this landmark agreement highlights the vital role natural gas plays in our transition to a low-carbon energy future."

Equinor is supplying five billion cubic metres (bcm), or around 8%, of the gas required by Britain until 2035.

The contract allows the sale of natural gas to be replaced in future with hydrogen.

The Labour government announced that it would not be issuing any new oil or gas licenses in order to achieve its climate goals.

Last year, Britain imported nearly two-thirds its gas needs. Half of these imports came from Norway.

In June 2022, Centrica signed its last agreement with Equinor to supply additional gas to Europe for three winters. This was in response to the concerns about gas supplies in Europe following the Russian invasion of Ukraine.

Centrica has also signed liquefied gas agreements with U.S. companies Coterra Energy, Delfin Midstream and Brazil's Petrobras. ($1 = 0.7389 pounds)

(source: Reuters)