SSE Pipelines has over 130,000 gas connections and provides services to new residential and commercial developments.
SSE’s director of finance Gregor Alexander said the sale will help channel funds away from assets which are not core to the company, and towards its generation business.
“We have identified a range of assets and businesses which are not core to SSE’s future plans and this disposal represents the latest step in the programme to significantly simplify the SSE group and secure proceeds and debt reduction estimated to total around £1 billion,” he said.
“This transaction will ensure resources are fully focused on what is important and relevant to SSE plc’s core purpose of providing the energy people need in a reliable and sustainable way whilst supporting future investment in clean energy,” he added.