The newspaper reported that the consortium has hired Rothschild and Citi to advise on the deal.
It said that the consortium behind the Thames Tideway supersewer, which includes Allianz, Dalmore Capital, DIF, Amber Infrastructure and Swiss Life Asset Managers, is also considering a bid.
Ofgem is currently consulting on the sale of the majority stake in National Grid’s four gas distribution businesses. The auction, which is due to start in spring, was announced last year.
Read Utility Week’s analysis of the valuation of gas distribution companies here