Italian utility Enel is considering the sale of its gas and electricity networks in order to reduce its debt.

The company has confirmed that it is in talks with Terna, the owner of Italy’s power transmission grid, over the sale of part of its electricity network. It says it is also considering the sale of its gas network, according to the Financial Times.

Enel’s debt has risen to EUR56 billion following the purchase of Spain’s Endesa and acquisitions in Russia. The sale of network assets could raise up to EUR4 billion, while the recently agreed deal to sell a number of assets to Germany’s E.ON will raise EUR8.4 billion.

Enel is now Europe’s second largest utility by installed capacity and has a presence in 21 countries. It is aiming to become a fully integrated gas and electricity utility and recently signed an agreement giving it access to natural gas assets in Egypt.