Pembina Pipeline Corp. is buying the Vantage pipeline system and Mistral Midstream Inc.'s interest in the Saskatchewan ethane extraction plant for $650 million.

Pembina said Tuesday that the deal will help diversify its business.

The Vantage pipeline starts in Tioga, North Dakota and ends near Empress, Alberta, Canada. It links ethane from the North Dakota Bakken play to Alberta's petrochemical market. It's an approximately 40,000 barrel per day pipeline, with the potential to expand to about 60,000 bpd.

The Saskatchewan plant is a deep cut gas processing facility that services the southeast Saskatchewan Bakken region. The plant is expected to produce about 4,500 bpd of ethane and will connect into Vantage through a pipeline that is being built.

The deal is targeted to close in the fourth quarter. It still needs regulatory approvals and is subject to other conditions, including approval from the Toronto Stock Exchange.