Construction is underway on a major electricity transmission project in British Columbia’s north, a project the federal and provincial governments say will contribute nearly $10 billion a year to B.C.’s economy.

The North Coast Transmission Line expansion will link Prince George to Terrace near the North Coast, and is expected to more than double electricity supply to the coast.

The project, which was referred to the federal Major Projects Office in November 2025 for possible fast-tracking, is expected to power major initiatives in the works such as the Ksi Lisims liquefied natural gas facility and mining in B.C.’s Golden Triangle near the Alaskan border.

Its first phase consists of a 165-kilometre stretch from Prince George to near Fraser Lake.

The federal government says in a statement that the transmission line is “the foundation” for the development of northwestern B.C.’s resources, while B.C.’s government says it will help reduce the province’s economic reliance on the United States.

Both Ottawa and the B.C. government estimate the project will create close to 10,000 direct, full-time jobs once operational, as well as 1,400 jobs at peak construction.

The federal and provincial governments agreed in July to commit a combined $3.9 billion to the project, which they say will generate about $950 million a year in provincial and municipal revenue.

Premier David Eby, who was attending a groundbreaking event in Prince George with federal Energy Minister Tim Hodgson on Thursday, said it would help “make our province the economic engine of a stronger Canada.”

“The North Coast Transmission Line is a generational project that will power clean growth and deliver thousands of jobs for families across B.C.,” he said in a statement ahead of the event.

Hodgson called the project a major step in Canada “taking control of our own future and getting big things built in Canada again.”

“Canadians and our allies are looking for a strong grid, critical minerals, LNG, and more — and none of that is possible without affordable power,” Hodgson said in a statement.

“The North Coast Transmission Line will deliver the clean electricity needed to unlock B.C.’s world-class deposits, power new processing facilities, and secure Canada’s role as a trusted global supplier.”

The project has also been supported by a loan of close to $140 million from the Canada Infrastructure Bank to BC Hydro for fast-tracking preconstruction work to expedite the groundbreaking.

This report by The Canadian Press was first published Sept. 3, 2026.