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Pacific Link - Canada's New Pacific Gateway and What It Means for the Skeena RegionAs Canada faces a more uncertain trad...
10/05/2026

Pacific Link - Canada's New Pacific Gateway and What It Means for the Skeena Region

As Canada faces a more uncertain trading relationship with the United States, Mark Carney's Pacific Link project is being advanced as part of a broader effort to diversify Canada's markets, strengthen the national economy and create new routes for Canadian resources to reach the world.

Canada is entering a different economic era.

For generations, the United States has been Canada's largest trading partner and the principal destination for many of the country's exports. The relationship remains enormously important, but the trade disputes and tariffs of the past two years have demonstrated how exposed Canada can be when so much of its economy depends on one market.

Prime Minister Mark Carney's government has increasingly responded by emphasizing a stronger Canadian economy at home and greater diversification abroad. In August, Carney said Canada needed to build its strength at home while diversifying its trading relationships, following a series of U.S. tariff measures and a suspension of Canada-U.S. trade negotiations.

It is against that backdrop that the federal government has designated the proposed Pacific Link pipeline as a Project of National Interest.

The project, formerly known as the West Coast Oil Pipeline, would move up to one million barrels of Canadian crude oil a day from Alberta to a proposed marine export terminal near Roberts Bank in British Columbia. Ottawa estimates that the project could create approximately 140,000 jobs across Canada, generate more than $20 billion in GDP annually and contribute more than $100 billion in government revenue by 2060. Those figures are federal projections, but they illustrate the scale of the project and why Ottawa is treating it as part of a national economic strategy.

The central idea is diversification. Canada would continue to trade extensively with the United States, but Canadian energy producers would have another major route to international customers, particularly in Asia. According to the federal government, about 90 per cent of Alberta's oil currently goes to the United States, making additional market access a significant part of the project's rationale.

That makes Pacific Link much more than an Alberta infrastructure proposal. It is part of a larger question facing Canada: how does a country with enormous natural resources, a relatively small domestic market and one of the world's longest coastlines build an economy that is resilient enough to withstand changes in global trade?

The Pacific coast is an important part of that answer.

A new western Canadian connection

Pacific Link would connect Alberta's resource base with British Columbia's Pacific coast, creating another route for Canadian energy to reach international markets. The proposed pipeline would head south toward Roberts Bank rather than north toward Prince Rupert or Kitimat.

That distinction matters for Northwest B.C.

Pacific Link is not a Skeena pipeline. Its proposed corridor does not run through Terrace, Smithers, Kitimat or Prince Rupert, and the region would not host the pipeline itself or its proposed crude export terminal.

But the absence of a physical route does not mean the project exists outside the economic story of the Skeena region.

Northwest B.C. is itself becoming an increasingly important part of Canada's Pacific-facing economy. Prince Rupert has developed into a major international gateway, Kitimat is becoming one of the country's most significant energy and industrial centres, and Terrace serves as a regional transportation, service and workforce hub for a large part of the North Coast and Interior.

At the same time, major projects are reshaping the region's economic landscape, including LNG Canada, Cedar LNG, natural-gas infrastructure, electricity transmission, port expansion and mining and critical-mineral development.

Pacific Link therefore belongs to a much larger Canadian infrastructure story in which different parts of the Pacific coast are developing different roles.

What this means for Prince Rupert

For Prince Rupert, Pacific Link does not mean becoming an oil-export port.

The proposed crude terminal would be located at Roberts Bank in the Lower Mainland, leaving Prince Rupert to continue developing its own role as a northern Pacific gateway for containers, bulk commodities and other forms of international trade.

That distinction could ultimately become an advantage for Canada.

Rather than relying on a single West Coast port or attempting to concentrate every commodity through one location, Canada is developing multiple gateways with different strengths. Prince Rupert can continue expanding its container and diversified cargo business while Roberts Bank would provide the proposed Pacific Link crude export connection.

For the Skeena region, the larger opportunity is therefore not the pipeline itself but the possibility of Northwest B.C. becoming an increasingly important part of Canada's broader Pacific trade network.

The federal government has already identified the expansion of Pacific trade infrastructure, including investment involving Prince Rupert and Stewart, as part of its wider economic and maritime strategy.

Kitimat and the North Coast

Kitimat's position is different again.

The community is becoming a major Canadian energy and industrial centre, with LNG Canada, Cedar LNG and associated natural-gas and infrastructure investments establishing a significant industrial presence on the North Coast.

Pacific Link would not supply those facilities and has no direct operational connection to LNG Canada or Cedar LNG. Instead, it represents another Pacific export corridor being developed elsewhere in British Columbia.

Taken together, these projects point toward a more diversified Pacific economy in which Alberta oil, Canadian LNG, minerals, manufactured goods and other commodities can reach international markets through different infrastructure systems.

For Northwest B.C., that creates a broader economic opportunity. The region does not have to host every national infrastructure project to participate in the investment and supply chains that develop around them.

The workforce question

One of the more practical connections between Pacific Link and the Skeena region could be the demand for people and businesses capable of building Canada's next generation of infrastructure.

Pacific Link would require engineers, tradespeople, construction workers, equipment operators, transportation companies and a large network of suppliers and professional services. At the same time, Northwest B.C. is already experiencing significant demand for many of those same skills as major projects move forward.

LNG Canada Phase 2, Prince Rupert Gas Transmission, electricity transmission projects, port development and resource projects will all require skilled workers and specialized contractors.

That creates an opportunity for businesses and workers in communities such as Terrace, Prince Rupert and throughout the Northwest to participate in a much larger western Canadian construction and infrastructure economy.

It also means the region could face increased competition for skilled labour, equipment and contractor capacity as major projects proceed simultaneously.

For communities already dealing with housing and workforce pressures, the scale and timing of these projects will matter.

Indigenous participation and a changing infrastructure model

Pacific Link also reflects a broader change in the way major Canadian infrastructure projects are being developed.

The federal government has proposed a minimum 10 per cent Indigenous ownership opportunity in the project, supported by financing mechanisms intended to facilitate participation.

That approach is particularly relevant in British Columbia, where Indigenous governments and economic-development organizations have become increasingly important participants in major resource and infrastructure projects.

Northwest B.C. has already seen Indigenous partnerships become part of the economic structure surrounding energy, transportation and resource development. Pacific Link will add another major example to that national discussion.

The question is no longer simply whether major infrastructure can be built. Increasingly, the question is how the economic benefits of that infrastructure can be shared with the Indigenous communities whose territories and economies are involved.

The Northern Gateway connection

There is also a significant historical reason why Pacific Link deserves attention in the Skeena region.

For years, the Northern Gateway project proposed moving Alberta oil westward to a marine terminal near Kitimat. Had that project proceeded, Northwest B.C. would have been directly connected to Alberta's crude-export strategy.

Pacific Link is taking a fundamentally different route.

Instead of bringing Alberta crude north to Kitimat, the current proposal would move it south to Roberts Bank.

That means Northwest B.C. is developing along a different economic path from the one envisioned under Northern Gateway. The region's major opportunities are increasingly concentrated around LNG, natural gas, international trade, mining, critical minerals, electricity and other forms of industrial development.

That difference is important when considering what Canada's Pacific economy could look like over the next several decades.

Why the project matters beyond oil

The most significant argument for Pacific Link from Ottawa's perspective is ultimately not about one commodity.

It is about Canada's ability to choose where its products go.

If Canadian oil can reach customers in Asia as well as the United States, producers have a larger potential customer base. If Prince Rupert can expand its international container trade, Canada has another major gateway to global markets. If Kitimat continues expanding its LNG and industrial capacity, Canada gains another Pacific export platform.

The same principle applies to critical minerals, agriculture, forestry, manufactured goods and other Canadian exports.

A more diversified trade network gives Canadian businesses more options and potentially makes the country less vulnerable when conditions in one market change.

That is particularly significant at a time when Canada's relationship with the United States is being tested by tariffs and disagreements over trade.

Carney has repeatedly described diversification and stronger domestic economic capacity as central elements of his government's response. In August, he said Canada could not control developments in Washington but could strengthen its economy at home and diversify its trading relationships abroad.

Pacific Link fits directly into that broader strategy.

What Canada is trying to build

The pipeline is only one part of the infrastructure required for that strategy to work.

Pacific Link would require a route to the coast, a new export terminal, additional marine infrastructure, environmental safeguards, Indigenous partnerships and investment in supporting infrastructure. Carney described the project as part of a broader nation-building effort rather than an isolated pipeline development.

That broader approach is important for Northwest B.C.

The economic future of the Skeena region will not be determined by one pipeline. It will be shaped by whether Canada continues to invest in the transportation, energy, port, telecommunications, housing and workforce infrastructure needed to support economic growth in the North.

Prince Rupert's port infrastructure, Kitimat's industrial development and Terrace's position as a regional service and transportation centre all become more significant as Canada's Pacific trade network expands.

A Canadian project with a Skeena connection

Pacific Link should therefore be understood on two levels.

At the national level, it is a proposed major energy corridor intended to give Canadian oil producers greater access to international markets, attract investment, create employment and reduce Canada's dependence on the United States as the dominant destination for Canadian crude.

At the regional level, it is another piece of the rapidly developing Pacific economy in which Northwest B.C. has an increasingly important role.

The pipeline itself will not pass through the Skeena region. There will be no Pacific Link terminal at Prince Rupert or Kitimat. The project's direct infrastructure footprint will be elsewhere.

But Canada's decision to build additional Pacific export capacity has implications for the economic environment in which Northwest B.C. operates.

For Prince Rupert, it reinforces the importance of having multiple Canadian Pacific gateways. For Kitimat, it highlights the different energy-export role developing on the North Coast. For Terrace and surrounding communities, it adds to the wider demand for workers, contractors, businesses and infrastructure created by a new generation of Canadian projects.

And for Canada as a whole, Pacific Link represents an attempt to make sure that the country's enormous resource base does not depend on one market or one direction of trade.

The United States will remain Canada's closest economic partner. Nothing about Pacific Link changes that reality.

But Canada's experience over the past two years has demonstrated the value of having alternatives.

The country has resources that the world needs, a Pacific coastline that provides access to some of the world's largest markets and communities across the West that are capable of building the infrastructure required to connect those resources with global customers.

The challenge is turning that potential into a functioning national network.

Pacific Link is one part of that effort.

And while the pipeline may bypass the Skeena region geographically, the larger economic strategy behind it reaches directly into the future of Northwest B.C. — a region that is increasingly positioned not at the edge of Canada's economy, but as one of the country's gateways to the Pacific.

Skeena at a Turning Point as LNG, Ports, Power and Minerals ConvergeKITIMAT / TERRACE / PRINCE RUPERT — Northwest Britis...
09/30/2026

Skeena at a Turning Point as LNG, Ports, Power and Minerals Converge

KITIMAT / TERRACE / PRINCE RUPERT — Northwest British Columbia has entered a new phase of industrial development, with major decisions and announcements over the past several days bringing energy, trade, electricity, critical minerals and regional infrastructure into the same conversation.

At the centre of the latest developments is LNG Canada’s decision to proceed with Phase 2 of its Kitimat export facility — a roughly C$33-billion expansion that will double the plant’s production capacity from 14 million to 28 million tonnes of LNG per year.

The Final Investment Decision was announced Sept. 28 by LNG Canada’s joint-venture participants — Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS. The expansion will add two LNG processing trains, a new storage tank, a condensate tank, another loading berth and expanded utility and process systems within the existing facility.

The decision is significant for Kitimat in its own right. But its implications extend far beyond the industrial site.

The same week, Premier David Eby announced a campaign commitment in Prince Rupert to double British Columbia’s critical-mineral exports within five years and expand the Port of Prince Rupert. Meanwhile, B.C. Conservative interim leader Lorne Doerkson unveiled a campaign plan calling for LNG production in the province to double by 2032 and triple by 2035.

And beneath those resource and trade ambitions is another major piece of infrastructure already moving into construction: the North Coast Transmission Line, which is being developed to increase electricity capacity from Prince George toward Terrace and farther north.

Taken together, these developments point to a broader regional question.

Can Northwest B.C.'s communities, infrastructure and workforce expand at the same pace as the investment and industrial activity now moving toward the North Coast?

LNG Canada Phase 2 changes the scale of the Kitimat story

LNG Canada says Phase 2 will double the facility's production capacity to 28 million tonnes per year. The company has also entered commercial agreements with Coastal GasLink to expand the existing 670-kilometre pipeline through five new compressor stations.

At peak construction, LNG Canada expects Phase 2 to support as many as 4,000 construction jobs in Kitimat, while approximately 2,100 jobs are expected to be associated with construction of the new Coastal GasLink compressor stations.

The company estimates Phase 2 could generate more than C$50 billion in government revenues over the life of the project, including direct spending, taxes, royalties and other revenues associated with direct and indirect economic activity.

The significance for the region is therefore not limited to the number of people working inside the LNG Canada facility.

A new construction cycle means demand for accommodation, food services, transportation, equipment, contractors, tradespeople, professional services and other suppliers. It also means renewed pressure on communities that have already experienced the effects of major industrial construction.

For Kitimat, the immediate question will be how the community accommodates another large construction workforce.

For Terrace, the effects could extend across the regional service economy — from hotels and rental housing to contractors, restaurants, retail businesses, transportation providers and skilled trades.

And for Prince Rupert, LNG is only one part of an increasingly complicated infrastructure and industrial picture.

Prince Rupert is becoming part of the same conversation

Prince Rupert's role in the regional economy has traditionally centred on its port, rail connections, forestry exports, cruise tourism and other trade activity.

The latest political announcements are placing another emphasis on the city's role: as a gateway for critical minerals and a more diversified Canadian export economy.

On Sept. 28, Eby announced a campaign commitment to double B.C.'s critical-mineral production and exports within five years and continue expanding the Port of Prince Rupert's network connecting ships, trains and trucks. The plan also proposes accelerating mine approvals, expanding smelting and refining capacity and advancing transmission infrastructure.

Those are campaign commitments, rather than completed projects.

That distinction matters.

LNG Canada's Phase 2 Final Investment Decision is a confirmed private-sector investment. The North Coast Transmission Line has already entered construction. By contrast, the proposed expansion of critical-mineral exports and additional port development described in the NDP campaign plan remain commitments that would require further government action, investment and approvals.

The result is nevertheless a clear policy direction being placed before voters during the provincial election campaign: whether B.C. should attempt to accelerate resource development and build the infrastructure needed to move more of those resources to global markets.

The power system may determine what comes next

For years, Northwest B.C.'s industrial development has been constrained not only by geography and transportation but also by the availability of electricity.

That makes the North Coast Transmission Line particularly important to the broader story.

The project would twin existing transmission infrastructure from Prince George to Terrace and extend north toward the Bob Quinn substation. The federal government's Major Projects Office says the project is intended to more than double clean electricity availability along Canada's West Coast and support projects including Ksi Lisims LNG and critical-mineral developments in the Golden Triangle.

Phase 1 construction officially began Sept. 3.

Canada and British Columbia have committed C$3.9 billion toward Phases 1 and 2 under the Canada-British Columbia Cooperative Prosperity Agreement. The federal government says the completed project could create approximately C$10 billion in new economic activity and nearly 10,000 jobs.

The project also contains an important Indigenous economic-participation component. First Nations participating through the K'uul Power consortium have agreements providing an option to acquire up to 50 per cent equity in the transmission project.

The connection between electricity and industrial development is therefore becoming increasingly direct.

LNG facilities, mines, ports and other industrial projects all require infrastructure. The transmission system is one of the pieces that determines how much additional development the region can physically support.

The Golden Triangle adds another layer

Northwest B.C.'s mineral potential has long been one of the region's major economic stories.

The Golden Triangle — extending through some of the province's most remote terrain — contains significant mineral deposits, but developing those resources requires more than geological potential.

Mines need electricity.

They need transportation.

They need access to ports.

They need skilled workers.

And projects must move through environmental assessment, permitting and engagement processes.

That is why the mining story increasingly intersects with the same infrastructure projects being discussed in Kitimat and Prince Rupert.

The provincial government's latest campaign platform explicitly connects critical-mineral development with the North Coast Transmission Line and with expansion of British Columbia's processing and refining capacity.

Whether those proposals ultimately become projects is a separate question. But the infrastructure strategy being discussed is increasingly regional rather than project-by-project.

Indigenous economic participation is becoming a central part of the equation

The economic story also cannot be separated from the First Nations whose territories encompass the region.

LNG Canada Phase 2 is located in Kitimat on the traditional territory of the Haisla Nation.

The Phase 2 decision also enables an equity option involving MNT Investments LP, representing economic development organizations associated with the Gitga'at, Gitxaała, Haisla, Kitselas and Kitsumkalum First Nations.

Under the arrangement, the five First Nations have the option to invest up to C$1 billion in a special-purpose entity that would purchase the future LNG storage tank being constructed as part of Phase 2. LNG Canada describes the transaction as one of the largest Indigenous ownership positions in major Canadian infrastructure.

That is significant because it represents a different model of participation from employment or contracting alone.

Across the wider infrastructure corridor, Indigenous economic participation is also being built into the transmission system, where participating First Nations have an option for up to 50 per cent ownership of the NCTL.

As more projects move forward, questions of economic participation, ownership, contracting, employment, rights and environmental responsibilities will remain central to the regional development debate.

Prince Rupert's infrastructure challenge is already here

The growth discussion comes at a time when Prince Rupert is already dealing with significant infrastructure needs.

The City of Prince Rupert has secured $65 million in provincial funding toward replacement of failing underground water infrastructure and is seeking additional support for water-treatment infrastructure. The city says water treatment was a central topic in five of nine meetings with provincial ministries during the recent Union of B.C. Municipalities conference.

The city is also seeking support for cruise-related infrastructure and improvements to regional power transmission.

According to the city, cruise traffic is expected to continue growing, while it is simultaneously advocating for transmission upgrades that could support clean-energy industries on the North Coast.

That combination illustrates one of the central challenges facing the region.

Economic growth does not occur only at industrial sites.

It puts demands on municipal water systems, sewer systems, roads, housing, airports, emergency services, transportation networks and local businesses.

The infrastructure required to support a billion-dollar project is often discussed separately from the infrastructure required to support the people living around it.

For communities such as Prince Rupert, Kitimat and Terrace, those two questions increasingly overlap.

Terrace sits between the major pieces

Terrace does not have an LNG export terminal or a deep-sea container port.

Its role is different.

The city sits at the centre of a regional transportation and service network connecting the North Coast with the Interior and northern resource developments.

As industrial activity increases in Kitimat, Prince Rupert and the wider Northwest, Terrace can be affected through housing demand, construction services, transportation, professional services, retail, hospitality and labour supply.

That makes housing one of the most important issues to watch.

The next construction cycle will not simply ask whether companies can find enough workers. It will ask whether the communities around the projects have enough places for those workers and their families to live.

It will also test whether local businesses can retain employees when large industrial projects can offer wages that smaller employers may struggle to match.

Those pressures are familiar from Phase 1.

The question is whether the next cycle will be larger.

The election puts competing resource strategies on the table

The provincial election adds another dimension to the timing.

The vote is scheduled for Oct. 24, placing the resource-development debate directly alongside the announcements now coming out of the Northwest.

Eby's campaign has placed critical minerals, trade diversification, LNG development and port expansion among its economic priorities.

Doerkson's Conservative campaign has proposed an alternative resource-development strategy centred heavily on expanding LNG, with a stated goal of doubling provincial LNG production by 2032 and tripling it by 2035. The party also proposes faster permitting and changes intended to attract additional investment.

Those are competing political commitments.

They should not be confused with projects that have already received investment decisions or entered construction.

The LNG Canada Phase 2 investment is happening regardless of the election campaign currently underway. The North Coast Transmission Line has already broken ground. The political question is what additional projects, infrastructure and regulatory changes a future provincial government would pursue.

That distinction will matter to communities throughout the Skeena region.

The real test will be on the ground

The language surrounding the latest announcements is inevitably large: nation-building, critical minerals, energy security, trade diversification, industrial corridors and global markets.

But the effects will ultimately be measured much closer to home.

Can Kitimat accommodate another major construction workforce?

Can Terrace provide enough housing and regional services?

Can Prince Rupert upgrade water, sewer, transportation and port-related infrastructure fast enough?

Can northern communities train and retain the workers needed for multiple major projects at once?

Can local businesses participate in the supply chains rather than being pushed aside by larger outside contractors?

And can First Nations secure meaningful economic participation alongside the rights and environmental responsibilities associated with development?

Those questions are harder to answer than announcing a project.

They are also the questions that will determine whether a new investment cycle produces lasting regional benefits.

One corridor, several economies

The developments of the past several days are significant individually.

LNG Canada Phase 2 represents a C$33-billion private investment and will double the Kitimat facility's production capacity.

The North Coast Transmission Line is moving into construction and is designed to expand electricity availability for communities and industrial projects along the coast.

Prince Rupert remains the region's major international trade gateway, while new political commitments are placing greater emphasis on critical minerals and export diversification.

The Golden Triangle represents another potential source of mineral development, but one dependent on infrastructure, power, transportation and approvals.

And First Nations are increasingly participating not only through employment and contracting, but also through equity and ownership structures.

Together, those developments form something larger than a collection of project announcements.

They represent the emergence of an increasingly interconnected Northwest B.C. economic corridor.

Kitimat is at the centre of the LNG expansion.

Terrace remains a critical regional service and transportation hub.

Prince Rupert provides the international port connection.

The Golden Triangle represents one of the region's major mineral opportunities.

The transmission network provides the electricity infrastructure needed for additional industrial development.

And First Nations are central to the territory, partnerships and economic structures underpinning projects across the region.

For Skeena communities, the next chapter will not be defined simply by how much money is invested.

It will be defined by whether the region can build housing, infrastructure, workforce capacity, transportation systems and durable partnerships at the same pace as the projects themselves.

The construction cranes may be the most visible sign of what is coming.

The more important measure will be what remains in the communities when the construction cycle is over.

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