Oryx Midstream Services, a privately-held midstream crude operator in the Permian Basin, announced that an affiliate of Qatar Investment Authority (QIA) has acquired a significant stake in Oryx from an affiliate of Stonepeak Infrastructure Partners.

Apart from acquiring the stake, QIA has also committed to investing in the development of Oryx along with Stonepeak. The overall QIA investment in the midstream company will be nearly $550m (£451m).

Oryx was established in 2013, and has become one of the top midstream operators in the Permian Basin in the Southwest US, transporting crude oil to market hubs for delivery to the Gulf Coast.

QIA CEO Mansoor Al-Mahmoud said: “We believe that Oryx represents a strong midstream platform with tremendous growth potential, and we look forward to working with our new partners at Stonepeak. This acquisition is a further demonstration of QIA’s strategy to increase the size of our US portfolio, and to invest more in major infrastructure projects.”

Oryx’s transport system supplies domestic refineries

The Oryx’s transport system supplies domestic refineries and the growing US export market, and when the remaining part of the system is completed, its total transportation capacity will exceed 900,000 barrels per day.

The company’s crude oil gathering and transportation system are supported by nearly one million acres under long-term dedications from over 20 customers.

Oryx CEO Brett Wiggs said: “The significant investment and commitment from QIA alongside Stonepeak’s strong operational and capital support will allow us to continue to grow our footprint in the Permian Basin and deliver the highest level of service to current and future customers. We are thrilled to lead Oryx in partnership with these world-class investors.”

QIA targets to increase investment in the US to $45bn (£37.2bn) in the coming years and the partnership with Oryx is the latest in a series of its investments.

QIA is a sovereign wealth fund aimed at diversifying and maximising long-term investments and sustainable growth to contribute to the Qatar National Vision of 2030.