LONDON, June 5 (Reuters) - British Energy owner Centrica (CNA.L) , opens new tab has signed a 10-year deal worth more than 20 billion pounds ($27.07 billion) to receive gas from Norwegian producer Equinor (EQNR.OL) , opens new tab, the companies said on Thursday.

Britain is seeking to cut its reliance on gas to help meet climate targets but around 70% of its homes are heated using the fossil fuel while gas-fired power plants account for around a quarter of the country's electricity supply.

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"This landmark agreement underscores the vital role that natural gas plays as a transition fuel as we navigate towards a low carbon energy future," Centrica CEO Chris O’Shea said in a press release.

Equinor will supply five billion cubic meters (bcm) of gas a year until 2035, equivalent to around 8% of Britain’s gas demand.

The contract also allows for natural gas sales to be replaced with hydrogen in the future.

Britain’s North Sea fossil fuel production has declined sharply since its peak in the late 1990s and the Labour government has said it will not issue any new oil and gas licences as part of its efforts to meet climate goals.

Britain imported almost two-thirds of its gas demand last year, with half of the imports coming from Norway.

Centrica last signed a deal with Equinor in June 2022 for the firm to deliver additional gas for the following three winters as countries across Europe grappled with supply concerns following Russia’s invasion of Ukraine and a huge reduction in Russian gas flows to Europe.

Centrica also has liquefied natural gas deals with U.S. firms Coterra Energy and Delfin Midstream, and Brazil’s Petrobras.

($1 = 0.7389 pounds)

https://www.reuters.com/sustainability/climate-energy/britains-centrica-signs-27-billion-deal-gas-norways-equinor-2025-06-05/