The pipeline has the potential to move over 2.3 million barrels of freshwater per day for oil and gas operations located throughout the Permian Basin, the nation’s highest-producing oilfield. The acquisition expands RRIG Water Solutions’ freshwater capabilities and overall footprint in the Permian Basin, enabling the company to transport freshwater to oil and gas companies active in the region.

Terms of the deal were not disclosed.

“RRIG Water Solutions understands that the most expensive water in the oil patch is the water that never arrives. With that in mind, we are committed to investing in pipeline infrastructure to improve access to large volumes of water throughout the Permian Basin,” said Stratton Haley, president of RRIG Water Solutions. “By delivering water to large central facilities and directly to well pads through pipelines instead of relying on trucks, we are doing our part to help producers lower drilling and completion costs, raise operational efficiency, and improve health, safety and environmental conditions in the oilfield.”

RRIG Water Solutions joins a parade of pipeline buyers in the Permian Basin amid a drilling rebound spurred by higher oil prices. While most producers are targeting oil, it often comes mixed with substantial natural gas. In 2017, the total number of rigs drilling in the nation’s biggest crude field rose to 370, the most in nearly three years, according to Baker Hughes data.