FILE PHOTO – The ticker and trading information for Blackstone Group is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE) April 4, 2016. REUTERS/Brendan McDermid
(Reuters) – Private equity firm Blackstone Group LP said on Tuesday it has set up a midstream unit in the Permian Basin to build facilities that treat water in one of the world’s largest oilfields.
Huge levels of dirty water produced by U.S. shale firms are driving up investment in water-handling facilities, as cash-conscious oil and gas companies try to cut costs.
Blackstone said it has an equity commitment of $500 million in Waterfield Midstream.
The Permian Basin of West Texas and New Mexico is at the centre of the U.S. shale boom.
Reporting by Shanti S Nair in Bengaluru; Editing by James Emmanuel
