Mutual-aid fire crews contained the early-morning blaze to work camp trailers, protecting Pembina’s Watson Island LPG terminal and Prince Rupert’s export logistics corridor.
PRINCE RUPERT, B.C. — In the early hours of Friday, January 2, 2026, a massive structure fire erupted at the entrance to Watson Island, threatening the logistics framework of one of North America’s most critical energy export hubs.
The blaze, which concentrated on the modular work camp trailers servicing the Pembina Liquefied Petroleum Gas (LPG) Terminal, prompted a joint tactical response that successfully prevented a regional economic catastrophe.
Tactical Chronology: A Race Against Time
The fire was first detected by on-site maintenance staff at approximately 2:00 a.m.. At the time, the site was vacant of regular work crews due to the holiday transition, a factor that ultimately resulted in zero casualties.
- Emergency Dispatch: Port Edward and Prince Rupert Fire Rescue departments were mobilized at 2:28 a.m. under the regional Fire Service Mutual Aid Agreement.
- The Fire Break: Firefighting crews successfully established a strategic fire break, isolating the flames within the work camp trailers and protecting the administrative buildings and high-value bulk liquid storage further inland.
- Containment: The blaze was brought under control before dawn, though the modular units used for worker housing were reported as a total loss.
Strategic and Economic Context
Watson Island’s transformation from a derelict pulp mill into the Watson Intermodal Trade and Logistics Park has been a multi-year triumph of municipal resilience.
- Revenue Source: Lease income from the Pembina LPG Terminal is a primary driver for Prince Rupert’s infrastructure funding, including the “BIG Project” to replace aging water and sewer mains.
- LPG Logistics: The terminal provides a vital link for Western Canadian propane and butane to reach Asian markets, arriving at ports two days faster than from other North American hubs.
The destruction of the work camp trailers creates a logistical bottleneck for Pembina’s 2026 optimization program. This project, funded through a $255 million facilities division spend, aims to increase storage and throughput capacity to meet 2026 growth targets.
Investigative and Safety Landscape
The fire is currently under investigation by the Fire Department and the local RCMP. This inquiry occurs amidst heightened regional concern:
- Regional Arson History: Prince Rupert has faced several deliberate fires in recent years, including a Christmas 2024 arson that displaced 100 residents.
- Public Safety Context: The Prince Rupert RCMP is concurrently under investigation by the Independent Investigations Office (IIO) regarding an in-custody death in late 2025.
Infrastructure Resilience in 2026
Despite the disruption at Watson Island, the City of Prince Rupert remains committed to several major 2026 projects:
- The BIG Project: Moving into its second phase to address downtown water security.
- Wastewater Treatment: Construction began this month on the Park Avenue Wastewater Wetland Treatment system, the city’s first implementation of such infrastructure.
- Waterfront Enhancement: The first phase of public access improvements at Bill Murray Way is slated for early 2026.
