Winter blackouts could be avoided if ministers haggling with energy giant Equinor seal multi-billion pound 20-year deal

MINISTERS are haggling with Norwegian energy giant Equinor to guarantee there will not be blackouts this winter.

A multi-billion pound deal for 20 years with the gas firm would secure Britain’s energy needs — but come with a hefty price tag.

PA

Liz Truss wants to seal the deal after promising to secure Britain’s ‘long-term energy needs’[/caption]

AFP

It is understood Business Secretary Jacob Rees-Mogg is haggling over the exact cost of the deal with Norwegian energy giant Equinor[/caption]

The extra borrowing needed could trigger further market instability, with Chancellor Kwasi Kwarteng said to be urging caution.

Gas prices have quadrupled in 12 months so locking in a discount on prices now could see us over-paying by a huge amount if the market settles.

But PM Liz Truss wants to seal the deal after promising to secure Britain’s “long-term energy needs” in her campaign for the Tory leadership.

It is understood Business Secretary Jacob Rees-Mogg is haggling over the exact cost of the deal.

Norway already supplies 42 per cent of the UK’s oil and gas demands, exporting £36.4billion to Britain last year.

Equinor also struck a similar ten-year deal to supply Poland with 15 per cent of its annual gas consumption.

Senior energy sector figures have lobbied the Government to broker the Norway deal amid fears France and Germany will not have enough supply to export to the UK.

Ms Truss has said: “We are looking at long-term contracts with other countries because energy security is vitally important.”