NACG's ML Northern Wins Five-Year, $135M Oil Sands Fuel Services Contract
North American Construction Group (“NACG”) announced its wholly owned subsidiary ML Northern Services has been awarded a five-year heavy equipment services contract with a major Canadian oil sands customer, according to a GlobeNewswire release carried by Oil & Gas 360. The Acheson, Alberta-based company will supply mobile fuel services to the customer’s fleet of ultra-class and other large mining equipment across multiple mine sites in the Fort McMurray region.
The contract commences September 30, 2026, and reaches full operational capacity by late Q4 2026, running through its expiry on July 5, 2031. NACG says it is the largest award in ML Northern’s history and the largest heavy equipment services contract focused on fuel services in the company’s history, adding approximately $135 million to NACG’s contractual backlog. The scope will be supported by a mix of existing fleet plus roughly $5 million in growth capital for 25 new 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, adding that the deal “reinforces our confidence in the incremental opportunities we see across the Fort McMurray region, including additional opportunities for similar heavy equipment services contracts.”
ML Northern, acquired by NACG in 2022, has operated in the Fort McMurray region since 2007, specializing in mobile fueling, lubrication, and steaming services for oil sands mining equipment.
What It Means for Subcontractors
For fuel, lubrication, and mobile equipment service providers in the oil sands, this is a signal that major operators are locking in long-duration service contracts rather than one-off arrangements, and that NACG sees more similar opportunities coming in the region. The $5 million growth-capital commitment for 25 new on-highway units also points to near-term equipment and driver hiring needs at ML Northern as it ramps toward full capacity late this year.
