The gas distributor, of The Strand, London, pleaded guilty to breaching Section 3(1) of the Health and Safety at Work etc Act 1974.
It was also ordered to pay over £36,102 in costs.
Preston Crown Court heard how 11-year-old Robbie Williamson and two friends were crossing the Leeds and Liverpool Canal using a pipeline running on the outside of Dugdale Bridge at Lowerhouse Lane, Burnley on 24 April 2014.
The boys were able to climb onto the pipe via a ramp running from the road to the canal tow path.
As he was crossing, Robbie fell from the pipe and into the canal. He was taken to hospital but died later that day, with the cause of death recorded as drowning and a head injury.
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The Health and Safety Executive (HSE) told the court that National Grid Gas failed to protect the risk of injury from falls from the pipeline.
The distributor has a procedure in place for inspecting this type of above ground pipe crossing, along with requirements for providing measures to prevent access on to the structures.
However, company records showed the pipe was stored within the bridge rather than exposed on the outside, meaning the crossing did not undergo an inspection and had no access prevention measures fitted.
In addition, maintenance work had been carried out on the pipe in the past but the records had not been updated.
HSE said pipe crossings typically have steel 'fans' or similar measures fitted to prevent access.
Such measures have now been fitted to the crossing following the incident after an HSE improvement notice was issued.
HSE Inspector Ian Redshaw said: "This was a tragic accident which has had a devastating impact on Robbie's family and friends.
"The company failed to assess the risks associated with this pipe to members of the public, and as a result they had not put in place any measures to prevent or deter access onto the pipe. This was a significant cause in Robbie's death."
(LM/CD)
