Sept 26 (Reuters) - Activist investor Engine Capital on Tuesday urged fuel marketer Parkland to reduce its debt and announce new share buyback plans.

In its latest letter to the board, the investor asked the company to use the proceeds from asset sales to pay down around C$600 million ($444.87 million) over the next two years.

Engine owns about 2.5% stake in Parkland, which has a long-term debt of C$6.28 billion as of June 30.

It could also allocate the excess cash it generates in 2024 and 2025 for share repurchases worth C$800 million, Engine said.

In March, Engine had asked the company to consider strategic options, including a sale or spinoff of non-core assets to become a more focused fuel and convenience retailer.

Parkland had then announced monetization of C$500 million of its non-core assets by 2025 and C$100 million in cost savings.

Engine said on Tuesday that Parkland could save another C$100 million by selling few other non-core assets like its heating oil business.

Parkland said it aims to share growth plans and capital allocation priorities with shareholders at its Investor Day on Nov. 14. ($1 = 1.3487 Canadian dollars) (Reporting by Sourasis Bose in Bengaluru)