British Gas owner Centrica have struck a new deal with Equinor a Norwegian state-owned oil company. This is in hopes to secure our domestic energy supplies, this comes as heavy gas and electricity prices have continued to rain on the UK for a lot of domestic energy consumers.
Equinor have agreed to give British gas an additional 1bn square foot of oil per year for the next 3 years. This adds to the previous deal which now means Equinor now makes up around 12% of Britain’s oil supplies. This new deal would be enough to heat up to 4.5million UK homes.
Since the begining of the year when the Russian Ukraine war happened, energy suppliers have been scrambling to find suppliers to secure Britain’s energy supply for the winter. Although the UK didn’t get much of its oil from Russia, the rest of Europe did. This means that there is going to be high competition for energy contracts from other realible sources.
The Energy sectary has stated with the ongoing issues with Russia it is becoming more important that we start sourcing more of the gas we need domestically. However, he also stated that we still also need to be sourcing energy from safe and reliable countries while we transition.
This new deal with Norway will help amplify Britain’s energy security over the next couple of years. This will also keep Britains partnership with Norway as an energy ally.