Vardah Gill
2 min read
In This Article:
Equinor ASA (NYSE:EQNR) has signed a new long-term deal with U.K. energy company Centrica, worth roughly £20 billion ($27.1 billion), to supply natural gas to the U.K. over the next decade.
Starting October 1, the agreement is based on current market prices and will provide about 10% of the country’s annual gas needs.
Despite efforts to cut back on fossil fuels, around 70% of U.K. homes still rely on gas for heating, and gas power plants contribute roughly 25% of the nation’s electricity. Under the agreement, Equinor ASA (NYSE:EQNR) will deliver about 5 billion cubic meters of gas per year, compared to the U.K.'s 2024 total demand of 55.8 billion cubic meters.
Equinor ASA (NYSE:EQNR) Chief Executive Anders Opedal made the following statement:
“This agreement will continue to support the U.K.’s energy security with reliable gas supplies from the Norwegian continental shelf.”
This deal replaces an earlier 10-year contract between the two companies that began in 2015 and ends in 2025. Last year, the U.K. imported nearly two-thirds of its gas supply, with Norway accounting for half of those imports, especially after Russian gas exports to Europe dropped following the 2022 invasion of Ukraine.
EQNR has surged by over 4% in the past month.
While we acknowledge the potential of EQNR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: Why These Energy Stocks Are Losing This Week and 20 Best Dividend Growth Stocks with High Yields
Disclosure. None.
