Here are the factsCovid impact on HL
Heartland Petrochemical Complex
Inter Pipeline continues to remain highly focused on executing construction, commercial and operational readiness activities for the Heartland Petrochemical Complex (HPC). The project construction site remains active, with rigorous sanitation and social distancing controls in place to protect workers during the COVID-19 pandemic. To date there have been no reported COVID-19 cases at HPC, however increased precautionary measures have lowered construction site staffing and impacted near-term planned productivity.
First quarter 2020 expenditures for this project were $255 million, bringing the total project spend since inception to approximately $2.5 billion.
Inter Pipeline recently completed a detailed analysis of the remaining capital costs for the polypropylene plant (PP) and refreshed the contingency costs for the propane dehydrogenation facility (PDH). A full review of project commissioning and start-up plans has also been completed and Inter Pipeline has elected to devote additional resources to support these critical activities. Additionally, the COVID-19 pandemic has affected Inter Pipeline's near-term construction execution plans, which will impact capital costs and may extend the construction schedule. As a result, the estimated cost of HPC is now approximately $4.0 billion, with the majority of incremental costs expected to be incurred in 2021 and 2022. The project in service date may shift to early 2022, however mitigation plans to address this are under development.
The 14 percent increase over the original estimate of $3.5 billion is broken down as follows:
| Incremental Cost (millions) | |
| Revised PP/PDH Design and Construction | $100 |
| Incremental Commissioning and Start Up | $170 |
| COVID-19 Impact | $150 |
| Incremental Interest During Construction | $80 |
| Total | $500 |