North American Construction Group says a five-year heavy equipment fuel services contract with a Canadian oil sands miner adds circa-C$135 million to its contract backlog.
Construction and mining contractor NACG will use existing fleet and about $5 million of new equipment to provide 25 on-highway fuelling units plus support gear to the unnamed miner.
It expects the contract to start at the end of September this year and reach full operational capacity before the end of 2026.
NACG said the contract was the largest in subsidiary ML Northern Service’s nearly 20-year history. The Alberta heavy equipment support services provider was acquired by NACG in 2022.
“This award marks an important milestone for ML Northern and further strengthens our recurring revenue profile with a blue-chip oil sands customer,” NACG CEO Barry Palmer said.
“The contract … reinforces our confidence in the incremental opportunities we see across the Fort McMurray region, including additional opportunities for similar heavy equipment services contracts.”
