Toyo Setal has signed two contracts for the execution of significant projects in the energy sector. One, under an EPC (Engineering, Procurement, Construction, Integration, and Commissioning) contract, is Parnaíba VI at the Parnaíba Complex in the State of Maranhão, a natural gas power plant. The second project is the construction of a 500 kV transmission line connecting the Governador Valadares 6 substation to the Mutum substation, both in Minas Gerais.
In addition to being important for the country, as they expand energy generation and transmission capacity, these projects create job opportunities for the local community. Developed for Eneva, the only private power generation company in Brazil with access to onshore gas, the Parnaíba VI project will generate around 600 direct jobs during the contract, in various roles such as helper, carpenter, welder, foreman, supervisor, engineer, and technician.
The transmission line project, commissioned by SPE Transmissora de Energia Linha Verde I S.A., part of the Terna Group, will generate another 800 direct jobs in the region. “In both projects, we will prioritize local workers and provide training courses for some roles, such as welding,” says Rafael Ribeiro de Mendonça Lima, Toyo Setal’s Commercial Director.
The executive also notes that these projects contribute to generating and maintaining indirect jobs in industry and services, such as transport, food, and accommodation.
Increased capacity and greater efficiency
For the Parnaíba VI project, Toyo Setal was contracted to execute the cycle closure of the Parnaíba III unit, which currently operates in open cycle and will be converted to closed cycle. This project will improve process safety and efficiency, reducing the cost per MW produced. It also includes the installation of a heat recovery steam generator (HRSG) and a steam turbine generator (STG), along with other Balance of Plant (BOP) equipment, increasing generation capacity from 178 MW to 270 MW, a 51% boost.
In the bidding process, Toyo Setal won by presenting the best technical and commercial solution, supported by its in-house engineering team. Another favorable factor was the company’s ability to optimize the client’s original schedule, reducing overall project costs and enabling earlier operation and energy commercialization. According to Rafael Lima, shortening a project schedule is a major challenge, especially in a region with high rainfall. “We studied this issue carefully and defined actions to mitigate the impact of rain on the work,” says Felipe Ferreira Pinto, Commercial Manager. “We are also prepared to minimize risks related to COVID-19, with PPE, hand sanitation, distancing in housing, cafeterias, buses, awareness campaigns, as well as testing and isolation plans,” adds Rafael Lima.
Toyo Setal’s unique integrated management system, continuously improved since 2010, was another strength in its proposal. Developed in-house, the system integrates all disciplines and includes multiple tools covering every stage — from engineering and planning to costs, procurement, and other controls. Award-winning at international management and engineering fairs, the system eliminates paper documentation and allows the client to monitor project progress in real time via the internet
Leading the consortium
In the transmission line project, aimed at strengthening transmission system reliability and making better use of renewable generation in the region, Toyo Setal leads the consortium contracted to install a 152 km, 500 kV line, as stipulated in auction 002, lot 07, held in 2017. The client is SPE Transmissora de Energia Linha Verde I S.A., part of the Terna Group. This transmission line will link the Governador Valadares 6 and Mutum substations, located in the Vale do Rio Doce, an area with rugged terrain, difficult access, and heavy rainfall.
The contract includes civil works, partial material supply, electromechanical assembly, installation of around 300 towers, cable stringing, and commissioning. The scope also foresees the construction of one bay at the Governador Valadares substation and another at the Mutum substation. The executive engineering project and the supply of main equipment and materials are the responsibility of Terna.
“The delivery deadline is aggressive. We managed to optimize the schedule and will deliver the project ahead of the client’s requested date, despite the rain and difficult access, which require extra safety measures,” says Felipe.
Strategic segment
Toyo Setal (TSE) is a Brazilian company specialized in implementing onshore industrial projects, focused on developing and executing complex projects, mainly under the EPC (Engineering, Procurement, Construction, and Commissioning) model.
The company has more than 60 years of experience in the Oil & Gas, Chemical, Petrochemical, Mining, Steel, Fertilizer, Infrastructure, and Energy sectors. “Currently, the energy sector is one of the company’s priorities. In our strategic planning, we set the goal of maintaining a strong portfolio in this sector and are investing efforts in preparing competitive technical and commercial proposals for upcoming bids,” concludes Rafael.