A venture to build the largest independent water infrastructure platform in the Permian Basin is advancing after Five Point Energy LLC secured a partnership with Diamondback Energy Inc., its second in a month’s time.

Diamondback and the private equity firm’s Deep Blue Midland Basin LLC is a joint venture (JV) to build water infrastructure in the Permian Midland sub-basin. The JV includes 800 miles of water pipelines for gathering, transport, disposal and reuse, with permitting disposal capacity of 2 million barrels/day and 65 million-plus barrels of water storage.

Also included in the package are “extensive recycle facilities…with capacity to supply over 500,000 barrels/day of recycled water for completions activity, “ the partners said. The initial dedication would...