Blackstone Faces Fraud Suit From Energy Transfer Over Pipeline

Multiple units of Blackstone Inc. are accused of fraud for profiting from natural gas liquids that Energy Transfer says should’ve gone to them, according to a lawsuit filed in Texas state court.

Blackstone directed EagleClaw, a midstream oil and gas company that it acquired in 2017, to deliver natural gas liquids to its pipeline even though it had an existing contract to first provide the gas to competitor Energy Transfer, according the suit filed in Reeves County.

“EagleClaw agreed to sell the daily volumes to Energy Transfer before anyone else,” Energy Transfer alleges, claiming that it had spent millions on ...