Norwegian power company Equinor said on Thursday it would bring more gas to UK’s Century for the next three winters, as European countries look to strengthen their assets during the ongoing war between Russia and Ukraine.
Equinor, Norway, with 67% of its shares, said the new agreement would add an estimated $ 1 billion cubic meters a year to the existing two-state contract with Centrica, the largest gas and electricity supplier in the U.K. to consumers through Britain. Gas.
In a statement, Centrica said it would now buy 10 bcm of gas per year from Equinor. “Against the backdrop of a difficult geopolitical and macroeconomic situation, this provision agreement will provide energy security for the UK,” he said.
“This new gas supply agreement will see Equinor bring enough gas to Centrica in the next three winters to burn an additional 4.5 million homes,” the company added.
Concerns related to both energy change and energy security have been thrown into sharp strands over Russia’s invasion of Ukraine, as prices for both oil and gas have continued to rise in recent months.
On Thursday, Dutch TTF Gas Futures of July 2022 traded at about 145 euros per megawatt hour, compared to 71.66 euros earlier this year.
Russia is an important supplier of both oil and gas, and a number of major economies have made plans to reduce their dependence on their hydrocarbons in recent months.
The UK has previously stated that the purchase of Russian goods should be less than 4% of its total gas volume by 2021, but the agreement between Equinor and Centrica highlights the importance of finding deals between the ongoing uncertainty and instability.
In a video message sent Thursday morning, Kwasi Kwarteng, secretary of trade and energy in the U.K., spoke about a new reality that many countries are facing following the Ukraine conflict.
“If we look at Russia, we look at Ukraine, we look at the demand for gas, it is very important to get goods from a united country like Norway.”
The agreement, says Kwarteng, does not mean “we turn our backs on renewable energy, to exciting new technologies like hydrogen. But it does mean we will find global security where we can rely on electricity for many years to come.”
Kwarteng’s statement on the dependence on electricity for the foreseeable future points to the great work the great economies are facing as they try to move from a fossil fuels to fossil fuels.
In May, the European Commission – the EU’s top branch – released details of a plan to boost the EU’s renewable energy base and reduce its reliance on Russian oil.
It also acknowledged that existing coal mines could be used “for longer than expected.”
The situation is challenging. Russia was the largest supplier of both petroleum and natural gas to the EU last year, according to Eurostat.
And when it comes to finding the same thing among the 27 EU members – the U.
Last week, Hungarian Foreign Minister Peter Szijjarto issued a decision banning Russian gas from the next European Union sanctions plan, saying it “could not happen.”