National Grid has agreed to the potential sale of its 25% stake in Cadent, its former gas distribution business, to Quadgas.
National Grid sold a 61% stake to consortium Quadgas, in March last year, with an agreement that it could sell a further 14% at a later date.
If both options are exercised by the consortium, it will be left as the sole owner of Cadent, which operates four of Great Britain's eight gas distribution networks.
Cadent owns the gas distribution networks in north London, central England, the east of England and northwest England.
The deal is expected to be completed between 1 March 2019 and 31 October 2019.