NACG Lands C$135 Million Heavy Equipment Fuel Services Contract in the Canadian Oil Sands
North American Construction Group Ltd. (NACG) has secured its largest-ever heavy equipment services contract focused on fuel operations, with subsidiary ML Northern Services Ltd. winning a five-year mobile fuel services deal valued at approximately C$135 million (≈ USD $100 million).
The contract, awarded by a major Canadian oil sands operator whose name has not been disclosed, covers mobile fuel services for the customer's fleet of ultra-class and other large mining equipment across multiple mine sites in the Fort McMurray region of Alberta. Services are set to commence on September 30, 2026, with full operational capacity expected by late Q4 2026. The agreement runs through July 5, 2031.
"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, CEO 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."
To support the expanded scope, NACG will deploy approximately C$5 million in growth capital. This investment covers 25 new on-highway units and additional support equipment, which will supplement ML Northern's existing fleet. The capital-light nature of the investment — roughly 3.7% of the total contract value — underscores the efficiency of ML Northern's operating model.
Strategic Significance
The contract represents a major validation of NACG's organic growth strategy in the oil sands region. The opportunity had been flagged in NACG's active tender and bid pipeline, and its successful conversion into a long-duration contract demonstrates the company's ability to move from pipeline opportunities to revenue-generating operations.
For NACG, this is the largest heavy equipment services contract focused on fuel services in the company's history. For ML Northern, it is the single largest award the subsidiary has ever secured since NACG acquired it in 2022.
About ML Northern Services
Founded in 2007 and headquartered in the Fort McMurray region, ML Northern Services Ltd. specializes in mobile fueling, lubrication, and steaming services for mission-critical heavy equipment operations. The company has built a reputation as a leading heavy equipment support services provider in Alberta's oil sands, serving mining operators who depend on around-the-clock equipment availability.
ML Northern was acquired by NACG in 2022 and has since become a key pillar of the parent company's heavy equipment services offering. NACG itself is a premier provider of heavy civil construction and mining services with over 70 years of history, operating across Canada, the United States, and Australia.
Market Context
The oil sands region around Fort McMurray remains one of the world's most intensive environments for ultra-class mining equipment. Keeping fleets of massive haul trucks, excavators, and support vehicles fueled and operational around the clock is a logistical challenge that demands dedicated mobile fuel service providers. Contracts of this scale signal continued long-term investment in oil sands production, even as the broader energy industry navigates the transition toward lower-carbon operations.
NACG shares (NOA.TO on the Toronto Stock Exchange) rose 2.46% on the day of the announcement, reflecting investor confidence in the contract's contribution to the company's backlog and recurring revenue profile.