Prince George has always been the service centre for northern BC, and the work around it is picking up again. In the past year, construction started on BC Hydro’s North Coast Transmission Line from Prince George to the coast. LNG Canada approved its $33 billion Phase 2, and Coastal GasLink confirmed new compressor stations along its route. Also, the Blackwater gold mine near Vanderhoof went into production and announced a $1.44 billion expansion. Finally, the province committed $1.579 billion to a new patient care tower at the Prince George hospital. Much of that activity sits along Highway 16 West, the Yellowhead, between Prince George and Vanderhoof. Below, we look at what is happening, and what it means for the communities and businesses along the highway.

What’s Coming: The North Coast Transmission Line

The biggest new build on Highway 16 West is BC Hydro’s North Coast Transmission Line. It twins the existing power lines from Prince George to Terrace and then extends north to Bob Quinn. The goal is to supply LNG, mining and industry on the north coast. Construction then began on September 3, 2026. The main yard is in Prince George, with satellite yards in Vanderhoof, Houston, Telkwa and Terrace.

The first phase runs from Prince George to the Fraser Lake area and should be complete around 2030. The second phase then reaches Terrace around 2032. The federal and provincial governments have committed $3.9 billion to these two phases. At peak, BC Hydro expects about 1,400 people on the job. In addition, the federal Major Projects Office lists it as a project of national interest. As a result, the communities between Prince George and Vanderhoof can count on six years of work running right along the highway.

LNG Canada Phase 2 and Coastal GasLink

On September 29, 2026, LNG Canada and its partners made a final investment decision on Phase 2 of the Kitimat terminal. The expansion doubles capacity to 28 million tonnes of LNG a year. To move the extra gas, TC Energy is proceeding with Coastal GasLink Phase 2. However, there is no new pipe. Instead, the project adds compressor stations and upgrades along the existing 670 km line from the Dawson Creek area to Kitimat. That route crosses central BC through the Prince George and Vanderhoof regions.

TC Energy expects up to 2,100 workers at peak across five sites, with construction starting in early 2027 and service in the early 2030s. TC Energy has not published the final station locations yet. Even so, Prince George is the natural supply and travel hub for the work.

Blackwater Mine: Production Now, Expansion Next

Artemis Gold’s Blackwater mine, about 110 km southwest of Vanderhoof, declared commercial production in May 2025. For 2026, it is guiding 265,000 to 290,000 ounces of gold. Today, the mine already employs about 900 people, including contractors.

Then, in December 2025, Artemis announced an expanded Phase 2 worth $1.44 billion. Early works began in January 2026, and major construction starts in the third quarter of 2026 for about two years. The build should peak at around 1,500 construction jobs, with about 1,200 permanent jobs once complete. Meanwhile, a smaller plant upgrade is on track to start up in late 2026.

North of Vanderhoof, near Fort St. James, the province approved the Mt. Milligan copper-gold mine extension in January 2026, extending its life to 2035 and supporting 574 jobs. Highway 27, the road between Vanderhoof and Fort St. James, is also slated for 75 km of resurfacing.

Prince George: Hospital Tower and Renewable Fuels

In the city itself, crews are scheduled to start building the new patient care tower at University Hospital of Northern BC in fall 2026. The 11-storey, $1.579 billion tower will more than double the hospital’s surgical, mental health and cardiac beds, from 102 to 211. Completion is planned for summer 2031. In other words, that is a five-year building project in the middle of town.

Prince George is also home to Tidewater Renewables’ renewable diesel and hydrogen complex. It ran at about 95 percent of capacity in early 2026 and expects 150 to 170 million litres of renewable diesel a year.

The Other Side of the Ledger: Forestry

Of course, not every headline is positive. In July 2026, Canfor announced the permanent closure of its Northwood pulp mill in Prince George, affecting about 300 jobs. Similarly, Canfor’s Plateau sawmill in Vanderhoof closed in December 2024. As a result, the District of Vanderhoof is absorbing about $580,000 in lost tax revenue in 2026. Overall, the region’s economy is shifting from forestry toward energy, mining and health care. The new projects are a big part of why the outlook remains steady.

Timelines to Watch

• North Coast Transmission Line: under construction since September 2026, Prince George to Fraser Lake by about 2030, to Terrace by about 2032.
• Blackwater Phase 2: major construction from the third quarter of 2026, about two years, first gold from the expansion in 2028.
• UHNBC patient care tower: construction from fall 2026, completion summer 2031.
• Coastal GasLink Phase 2: construction from early 2027, in service early 2030s.
• Mt. Milligan: mine life extended to 2035.
• Ksi Lisims LNG: the proposed north coast LNG terminal that the transmission line will supply, with a final investment decision targeted for 2026. Until the partners announce that decision, treat it as a project to watch.

What It Means for Highway 16 Commercial Property

Generally, large projects house most of their own workforce. Instead, the spin-off comes from everyone else: engineers, inspectors, surveyors, suppliers, subcontractors, consultants and visiting staff. On top of that, families, tourists and travellers already use Highway 16 every day. As a result, they book rooms, stay at RV parks, eat at restaurants and buy fuel along the highway. A transmission line, a mine expansion, pipeline work and a hospital build now overlap from 2026 into the 2030s. Because of that, demand should run for years rather than a single season.

For more on the energy projects further north and west, see our article on northern BC LNG projects from Chetwynd to Prince Rupert.

BC Commercial Group currently has properties listed in and around Prince George:

• Prince George region: Lakefront RV Park & Resort on Highway 16, an 82 site seasonal RV park on about 35 lakefront acres with a beach, dock and boat launch, plus a restaurant and pub building leased to a tenant
• Mackenzie: Williston Lake Lodge, a 24 unit motel about two hours north of Prince George

Related Articles

• Northern BC LNG Projects: Chetwynd to Prince Rupert
• Valemount and the Robson Valley: Today’s Demand and the Next Pipeline

Sources

• Major Projects Office: North Coast Transmission Line
• LNG Canada: Phase 2 final investment decision
• TC Energy: Coastal GasLink Phase 2 to proceed
• Artemis Gold: Expanded Phase 2 at Blackwater
• Artemis Gold: 2026 guidance
• Omineca Express: Blackwater expansion on schedule
• Business in Vancouver: Mt. Milligan extended to 2035
• CKPG: UHNBC expansion construction to begin in 2026
• Biomass Magazine: Tidewater Renewables Prince George
• Canfor: Northwood pulp mill closure
• Vanderhoof tax revenue after the Plateau mill closure
• CKPG: Highway improvements coming to northern BC