David Black proposes $13-billion refinery despite rating agency concern about his newspaper chain
Victoria-based newspaper publisher David Black has announced that he wants to build a $13-billion oil refinery near Kitimat.
The former chair of the B.C. Progress Board has told reporters that he will file an application to have the project undergo an environmental assessment.
It would process bitumen transported from the Alberta tar sands through Enbridge's proposed Northern Gateway Project.
According to the National Energy Board, there hasn't been an oil refinery built in Canada since 1984.
The news comes a couple of months after Standard & Poor's dropped its outlook on his newspaper chain, Black Press, from "B/stable" to "B/negative".
Black Press owns community papers across the province as well as newspapers in Washington state, Hawaii, Ohio, and Alberta.
Standard & Poor's stated that Black Press "has less-than-adequate liquidity based on refinancing risk and the company's tight leverage covenant cushion".
The rating agency's concern arose as a result of an unfavourable foreign-exchange rate, a lost printing contract, and declining advertising sales.
Follow Charlie Smith on Twitter at twitter.com/csmithstraight.