CPYYY - Equinor Centrica reach deal to supply more natural gas to U.K.

The U.K. will obtain more natural gas from Norway over the coming winters, as Equinor (NYSE:EQNR) said Thursday it signed an agreement with British energy supplier Centrica (OTCPK:CPYYF) to deliver additional gas supplies to the U.K. over the next three winters. Equinor (EQNR) will add ~1B cm/year of gas to its existing contract with Centrica (OTCPK:CPYYF), bringing total annual volumes to more than 10B cm. The agreement will "ease the pressure and provide some more certainty ahead of what may be a difficult winter," Centrica (OTCPK:CPYYF) CEO Chris O’Shea said. Equinor (EQNR) typically sends 20B-22B cm/year of gas to the U.K., covering more than a quarter of the country's demand; gas prices in Britain, which lacks storage capacity and relies heavily on imports, have surged nearly 90%. European gas futures have jumped ~75% this week to ~€130/MWhr, as Russian supply exerts its influence over European energy prices.

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Equinor, Centrica reach deal to supply more natural gas to U.K.