TOYO Receives Additional Order for Large-Scale Pipeline Project from Brazil

Toyo Engineering Corporation (TOYO) has been awarded a contract by Petroleo Brasileiro S.A. (PETROBRAS, head office Rio de Janeiro) to construct an approximately 500 km pipeline (*) between Catu and Pilar and connecting two other sections in northeastern Brazil. This is part of a large-scale project to build a total 3,000 km natural gas pipeline network in northeastern and southeastern Brazil for supply of natural gas to power generation facilities and other markets. Aiming at a steadier energy supply, Brazil is hastening to construct natural gas based power plants and a gas pipeline network in the northeastern Brazil. TOYO is to now, including that from projects awarded in 2002 and 2003, construct a total 1,300 km of the natural gas pipeline network and its related facilities such as metering stations.

Under the contract amounting to about \40 billion, TOYO will provide lump-sum services for detail design, procurement of equipment and materials, construction, and commissioning supervision. Project completion is scheduled for the third quarter of 2006. The client's appreciation of TOYO's capabilities already shown through several projects including the ongoing pipeline projects, their cost competitiveness, and their technological capabilities have led to TOYO's winning this project. TOYO will intensify its marketing efforts toward winning the other portions of the pipeline network and other energy-related facility projects in Brazil.