New York investment firm Blackstone has funded a new company to provide water management and infrastructure services to oil and natural gas sites in the arid Permian Basin of West Texas.

Visit Oilfield1 Shop

Blackstone announced on Tuesday that firm’s energy arm Blackstone Energy Partners LP has invested $500 million of private equity into the newly formed Waterfield Midstream LLC.

Headquartered in The Woodlands, Waterfield will focus on developing and acquiring water infrastructure projects ranging from delivering freshwater to hydraulic fracturing sites to treating, recycling and disposing of wastewater from oil and natural gas wells.

“We believe that Waterfield addresses a critical need of producers in the Permian Basin both in terms of infrastructure and quality of service,” Blackstone Principal Erik Belz said in a statement. “Waterfield’s subsurface capabilities and engineering track record set it apart from other offerings in the market. [read more]