Equinor, Centrica Strike 10-Year UK Gas Supply Agreement

Equinor ASA EQNR, the Norwegian energy giant, and Centrica plc, owner of British Gas, have inked a £20 billion gas supply agreement for 10 years starting Oct. 1, 2025. Under the terms of the deal, Equinor will supply 55 terawatt-hours (TWh) of natural gas annually, equivalent to around 5 billion cubic meters, meeting nearly 10% of the UK’s total gas demand.The agreement, priced at market rates, stands out as one of the largest bilateral gas supply deals in Equinor’s portfolio and marks a milestone in the UK’s efforts to stabilize energy supplies amid geopolitical uncertainty and the ongoing energy transition.As Europe continues to adjust to the decline in Russian gas exports, the UK has increasingly leaned on Norway, which already accounts for around two-thirds of Britain’s gas supply, with Equinor being the dominant supplier. This long-term agreement ensures a stable gas flow from the Norwegian Continental Shelf, giving the UK a critical buffer against market volatility and supply disruptions, especially as the country prepares for future winter demands.Equinor CEO Anders Opedal highlighted that the agreement supports both energy reliability and decarbonization efforts, noting the flexible and strategic role of natural gas in the energy transition. He also underscored the UK’s position as a key and longstanding partner for Equinor.Centrica’s CEO Chris O’Shea called the deal a “significant investment in the UK’s future,” positioning natural gas as a key bridge fuel that supports both current energy needs and emerging low-carbon technologies like hydrogen and carbon capture.With energy markets still grappling with the fallout of Russia’s supply cuts, long-term gas contracts are regaining favor among utilities and governments aiming to hedge against price spikes and ensure continuity. For Centrica, this deal complements efforts to strengthen domestic infrastructure, including gas storage, while maintaining flexibility during the energy transition.At the same time, the agreement aligns with the UK’s push for energy resilience without undermining climate commitments. O’Shea also indicated that Centrica plans to collaborate with the government on expanding national gas storage capacity, further enhancing the country’s energy security.Beyond conventional gas supply, Equinor is playing a leading role in the UK’s shift toward a low-carbon future. The company already operates three offshore wind farms, including Hywind Scotland, the world’s first floating wind facility, and is developing Dogger Bank, which is on track to become the world’s largest offshore wind farm.Equinor is also advancing carbon capture and storage projects in the UK, including the nation’s first CO2 transport and storage initiative and a gas-fired power plant designed with integrated carbon capture capabilities.This new supply agreement strengthens Equinor’s position across the UK energy value chain, from upstream gas to renewable and low-carbon infrastructure, reinforcing its role as a key partner in the country’s evolving energy landscape.As the UK navigates an increasingly complex energy environment shaped by global supply disruptions and climate commitments, the £20 billion Equinor-Centrica deal serves as a pragmatic yet forward-looking strategy. It ensures secure, long-term gas supplies while laying the groundwork for a more resilient and sustainable energy future.EQNR’s Zacks Rank & Key PicksEQNR currently carries a Zack Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY, Energy Transfer LP ET and RPC Inc. RES. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Energy Transfer and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.Energy Transfer is poised to benefit from long-term fee-based commitments. It is also focused on expanding operations through organic and inorganic initiatives. The firm is looking for solutions to meet growing energy demands from additional demand centers through its pipeline network. Energy Transfer’s systematic investments should boost its total fractionation capacity at Mont Belvieu and raise its top line.The Zacks Consensus Estimate for ET’s 2025 EPS is pegged at $1.44. The company has a Value Score of A.RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities. The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energy Transfer LP (ET): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks