The Wall Street Journal first reported the news, citing unnamed sources.
Carlyle/Riverstone Global Energy and Power Fund picked up almost all of Encana’s gas storage business in 2006 in a $1.5bn deal, and both firms have been heavily involved in energy deals since.
The WSJ said Encana was currently looking to shift its focus away from natural gas and towards more lucrative drilling for oil and natural gas liquids.
Carlyle bought a 47.5 per cent stake in NGP Energy Capital for $424m in 2012.
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