North American Construction Group Ltd (NACG) has announced that its wholly owned subsidiary ML Northern Services Ltd has been awarded a five-year heavy equipment services contract with a major Canadian oil sands customer. The contract will service the customer’s fleet of ultra-class and other large mining equipment by supplying the customer with mobile fuel services across their various mine sites.
The contract is expected to commence on September 30, 2026 and reach full operational capacity in late 2026 Q4. It represents the largest award in ML Northern’s history and the largest heavy equipment services contract focused on fuel services in NACG’s history, it says validating its organic growth strategy in the region.
With an expiry date of July 5, 2031, the contract is expected to add approximately C$135 million to the company’s contractual backlog. The scope will be supported by a combination of existing fleet and approximately C$5 million of growth capital for 25 on-highway units and other support equipment.
“This award marks an important milestone for ML Northern and further strengthens our recurring revenue profile with a blue-chip oil sands customer,” said Barry Palmer, Chief Executive Officer of NACG. “The contract adds approximately C$135 million of long-duration backlog with modest growth capital requirements, highlighting the strength of ML Northern’s operating performance since acquisition, and reinforces our confidence in the incremental opportunities we see across the Fort McMurray region, including additional opportunities for similar heavy equipment services contracts.”
The award represents a successful conversion of a previously identified opportunity in NACG’s active tender and bid pipeline, underscoring the company’s ability to translate visible near-term opportunities into long-duration contractual backlog.
Operating since 2007, ML Northern is a leading heavy equipment support services provider in the Fort McMurray region of Alberta. Acquired by NACG in 2022, the company specialises in mobile fueling, lubrication, and steaming services, supporting mission-critical equipment operations across the oil sands industry.