[Editor's note: This story was updated at 9:55 a.m. CT May 9.]

Enbridge Inc. (NYSE: ENB) will sell a U.S. gas pipelines business and part of its renewable energy assets for a combined $2.5 billion, the Canadian pipeline operator said May 9, as it seeks to shed secondary assets and reduce its massive debt load.

Enbridge said it had sealed a C$1.75 billion (US$1.35 billion) agreement with the Canada Pension Plan Investment Board (CPPIB) to sell a 49% stake in wind and solar power assets in North America and Germany.

The Calgary, Alberta-based firm will also sell Midcoast Operating LP, its U.S. gas pipelines unit, to an affiliate of private equity firm ArcLight Capital Partners LLC for $1.12 billion. Midcoast operates facilities to process and treat natural gas and NGL.

Both deals advance Enbridge's goal of selling assets worth C$3 billion (US$2.33 billion) this year. The company has faced pressure from investors to sell assets that are not integral to its main oil and natural gas pipelines business since its $28 billion purchase last year of U.S.-based Spectra Energy.

Enbridge currently has about $61 billion in long-term debt.

"The sale of Midcoast is an important step in our shift towards a pure regulated pipeline and utility model," Enbridge CEO Al Monaco said in a statement.

For the CPPIB, its deal with Enbridge represents the second bet in as many months on renewable energy, as it takes advantage of low prices in the sector. The pension fund manager said last month it would buy U.S. utility NextEra Energy Partners LP's (NYSE: NEP) wind and solar assets in Ontario for about $582 million.

The CPPIB and Enbridge will also form a joint venture focused on future European offshore wind energy projects.

Both the Midcoast and renewable energy transactions are expected to close in the third quarter.

CIBC Capital Markets was exclusive financial adviser and Dentons was exclusive legal adviser to Enbridge. Gibson, Dunn & Crutcher LLP represented ArcLight in its acquisition of Midcoast from Enbridge.

Enbridge expects to retain its stake in other U.S. renewable power assets, which may be monetized or sold at a later date, it said.

Enbridge's shares rose 2 pct to C$41.22 on the Toronto Stock Exchange, while its U.S.-listed stock was up 2.8% in the morning May 9. (US$1 = C$1.2922)