Investors line up to bid for National Grid’s massive £11bn gas pipeline

Billy Bambrough
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National Grid says it wants to refocus its investments into higher growth areas, such as its electricity networks (Source: Getty)

Investors are teaming up to bid for a controlling stake in National Grid’s £11bn gas pipeline arm that was put on sale last year.

The consortium includes Canada’s Borealis Infrastructure; the Universities Superannuation Scheme, and Wren House, an arm of Kuwait’s sovereign wealth fund. Bankers at Rothschild and Citi have been recruited as advisors, the Sunday Times reported.

Meanwhile, interest from the Ontario Teachers’ Pension Plan and Borealis has reportedly cooled.

National Grid's gas business owns 82,000 miles of pipeline, and delivers gas to around 11m customers.

Announcing the sale in November, National Grid said it wanted to "realise the value it has created in the networks" and has promised to return the money it generates to shareholders. The company said it wants to move away from the gas distribution, which is growing at around two per cent each year, to focus on its electricity network in England and Wales that’s seeing growth of five per cent.

National Grid’s US electricity network in Massachusetts, New York and Rhode Island last year saw seven per cent growth.

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