GIP is believed to be working with banks to fund a $1.8bn proposal to buy a 40 per cent interest in the Jemena gas business from Singapore Power.
DataRoom reported last week that Singapore Power was in advanced talks about a deal.
Stonepeak, advised by JPMorgan and Macquarie Capital, was earlier considered the most likely suitor, but has stopped working on a bid.
GIP, which has a low cost of capital and owns other gas-related assets, is understood to have lenders in place to fund an acquisition.
The asset, up for sale through Goldman Sachs, is on Singapore Power’s books for $1.6bn. Final bids were received recently.
Jemena owns Australian energy infrastructure assets including gas pipelines and gas and electricity networks in Victoria, NSW, Queensland and the Northern Territory.
China’s State Grid owns 60 per cent and Singapore Power the remainder.
US-based GIP is a leading infrastructure investor with more than $US100bn ($147bn) of assets under management globally.
In Australia, it owns stakes in Sydney Airport, the ports of Brisbane and Melbourne, and the GLNG plant on Curtis Island near Gladstone.
It is currently bidding with Dexus to buy Gold Coast Airport owner Queensland Airport, competing against Skip Capital (with KKR) and the Bank of America-advised AustralianSuper, which is bidding alone.
GIP is also in the contest for the $20bn data centre operator AirTrunk, bidding against Blackstone and Canada Pension Plan Investment Board as part of a consortium with Digital Bridge, Silver Lake and IFM.
Final bids were due last week.
The sale of Jemena comes as energy sources and supplies remain high on the agenda in the political debate.
Goldman Sachs well placed with Real Pet Food sale imminent
Investment bankers have recently entered a beauty parade in the hope of landing the job of selling the pet food company.
KKR weighing up $8bn office landlord Dexus
Blackstone made another bid for the real estate and infrastructure group last year, and now its major private equity rival is said to have been looking.