Turbine Inlet Air Cooling (TIAC) is an established and proven power augmentation technology for GT power plants. It cools the compressor inlet air to boost GT generator power output and efficiency. The technologies adopted for TIAC includes mechanical chilling, evaporative cooling and fogging.

1. PROJECT EXECUTIVE SUMMARY
PROPOSED DEVELOPMENT OF TURBINE INLET AIR COOLING
(TIAC) PLANT ON A BUILD, OWN AND TRANSFER (BOT) IN
PETRONAS LNG COMPLEX’s NATURAL GAS LIQUEFACTION
PLANT, BINTULU, SARAWAK.
This Green project is a WIN-WIN for both the Sponsor and Petronas

2. PURPOSE OF PROJECT
This proposed Cooling Plant which use Turbine Inlet Air Cooling (TIAC)
technology, will increase existing operating gas turbine performance, and as
the result it will increase production of LNG about 10% valued at RM 2.00
billion a year.
Other advantages of the application of TIAC technology is that it will reduce
operating cost by reducing the fuel quantity. In addition, this technology is
only uses waste heat generated by the hot turbines as the fuel source,
reduce CO2, extend life cycle of equipment and reduce maintenance cost.
This is a green project since it use waste heat generated by gas turbines,
converting it to steam and finally into chilled water.
(Note: With reference to the project papers presented by our consortium leaded by
our EPCC contractor to MNLG PETRONAS on 15 January 2015 at LNG Processing
Plant, Bintulu, Sarawak pertaining the abovementioned subject.)

3. Rationale (reasons)of the Project
1. Increase the LNG production of MLNG Petronas Sdn Bhd, Bintulu processing
plant by RM2.0 billion per year
2. By BOT concept it will save Petronas money in term of CAPEX & the money
can be used for other Petronas CORE business
3. Even by BOT concept MLNG Petronas still gains the revenue about 75%
because ONLY 25% to be used to pay Chilled Water cost ( to the developer) to
operate the Cooling Plant
4. Since this Cooling Plant is not a CORE business of Petronas ( it is just a utility
support) it is better private sector to invest.
5. This Cooling Plant use TIAC technology which reduce OPEX of MLNG Petronas.
6. This TIAC technology is a GREEN technology as it reduce Carbon Dioxide by
increasing turbine performance( reduce gas fuel)
7. By BOT concept, this cooling Plant industries can go into global market if
implemented by TPE rather than MLNG Petronas.
8. Sarawakian companies such as Sarawak GLCs or/and subsidiaries will take
major contract of the project.

4. Project Financial Summary
1. Investment cost: About RMXX billion
2. EPCC cost: RMXXX million
3. Project ROI: 25%
4. Project Payback: 4 years
5. Revenue : XXX million per year
6. Operation &maint (OPEX): RMXXmillion a year
7. DSCR: 1.8
8. NPV AT 20YRS: XXXMILION

5. This Project will be financed by Xxxxx Capital LLC USA. The investment cost
is expected to be about RMXXX billion and will be returned back by selling
the chilled water ( used to operate the TIAC plant) to MLNG Petronas at an
agreed price.
Tati Pro Energy Sdn Bhd who will be the project lead promoter, supported
by EPCC Contractor as the technology provider, express our interest (EOI) to
develop the project under the concept of Build Own and Transfer (BOT).
TPE is looking for a concession agreement with MLNG Petronas for selling
chilled water to MNLG Petronas at an agreed price. The chilled water
produced by the Proposed Cooling Plant is used to cool the existing Gas
Turbines.
Financing

6. PROJECT CASH FLOW
<< Assumed Development >> A. MLNG Chiller Plant Cash Flow Study
Items Project year -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Calendar year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
1 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 0.0
2 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 260.8 0.0
3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 0.00
5 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.00
6 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cash inflow (Million RM) 0.0 0.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 0.0
1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
2 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 313.0 0.0
Cash outflow (Million RM) 173.5 199.7 222.3 220.3 216.4 212.4 208.4 204.4 200.4 196.4 192.5 188.5 111.6 111.6 111.6 111.6 111.6 111.6 111.6 111.6 111.6 111.6 0.0
1 173.5 199.7 0.0 0.0 0.0 0.0
2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
3 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 30.1 0.00
4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 0.00
5 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 9.1 0.0
6 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.0
7 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 0.0
8 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 0.0
10 47.2 44.5 39.3 34.1 28.8 23.6 18.3 13.1 7.9 2.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
200.1 202.7 208.0 213.2 218.4 223.7 228.9 234.2 239.4 244.6 247.3 247.3 247.3 247.3 247.3 247.3 247.3 247.3 247.3 247.3 0.0
1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8 1,121.8
11 34.6 35.2 36.4 37.7 39.0 40.2 41.5 42.7 44.0 45.3 45.9 45.9 45.9 45.9 45.9 45.9 45.9 45.9 45.9 45.9 0.0
12 74.9 74.9 74.9 74.9 74.9 74.9 74.9 74.9 74.9 74.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
673.7 598.9 524.0 449.2 374.3 299.4 224.6 149.7 74.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net cash flow (A - B) (Million RM) -173.5 -199.7 90.7 92.7 96.7 100.6 104.6 108.6 112.6 116.6 120.5 124.5 201.4 201.4 201.4 201.4 201.4 201.4 201.4 201.4 201.4 201.4 0.0
Cumulative -173.5 -373.2 -282.5 -189.9 -93.2 7.4 112.0 220.6 333.2 449.8 570.3 694.9 896.2 1,097.6 1,299.0 1,500.4 1,701.8 1,903.1 2,104.5 2,305.9 2,507.3 2,708.7 2,708.7
Debt service coverage ratio 1.7 1.8 1.8 1.9 2.0 2.1 2.2 2.3 2.5 2.6 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Revised net cash flow (Million RM) -173.5 -199.7 90.7 92.7 96.7 100.6 104.6 108.6 112.6 116.6 120.5 124.5 201.4 201.4 201.4 201.4 201.4 201.4 201.4 201.4 201.4 201.4 0.0
Cumulative -173.5 -373.2 -282.5 -189.9 -93.2 7.4 112.0 220.6 333.2 449.8 570.3 694.9 896.2 1,097.6 1,299.0 1,500.4 1,701.8 1,903.1 2,104.5 2,305.9 2,507.3 2,708.7 2,708.7
Net present value (Million RM) -173.5 -182.6 75.8 70.8 67.5 64.2 61.0 57.9 54.9 51.9 49.1 46.4 68.5 62.6 57.2 52.3 47.8 43.7 40.0 36.5 33.4 30.5 0.0
Discount factor: 9.400% 1.00 0.91 0.84 0.76 0.70 0.64 0.58 0.53 0.49 0.45 0.41 0.37 0.34 0.31 0.28 0.26 0.24 0.22 0.20 0.18 0.17 0.15 0.14
Cumulative -173.5 -356.1 -280.3 -209.5 -142.0 -77.8 -16.8 41.1 96.0 147.9 197.0 243.3 311.9 374.5 431.7 484.1 531.9 575.6 615.6 652.1 685.5 716.0 716.0
IRR on the equity invested: 25.9%
Note:
1 Contract demandcharge 400 RM/RT/ Month 4,800 RM/RT/ Yr. 6 Water cost 1.21 RM/m3 10 Depreciation 20 year straight line 14 Loan ratio 70.0%
109.59 7 Chemicals cost Estimated 11 Taxrate 24% 15 Electricity S'wak Industrial Tar
2 Exchange rate 3.65 RM/USD 12 Loan repayment 10 years 16 Annual Escalation 0%
3 Fixed O&M (Salary and Admin Exp) 3.000 8 Fixed O&M (Non Salary & Admin) 100.000 RM/RT 13 Termloan 7% interest 17 Utility Escalation 0%
0.0% annual increase 9 Variable O&M 0.050 RM/RTH 18 Land rental 4.17
4 Chilledwater energy charge 0.326 RM/RTh 0.09 USD/RTh 1.200 RM/RTh Flat Rate Basis
0.09 USD/RTH 0.33 USD/RTh Flat Rate Basis
USD/RT/Month
million RM of year 2015
Interest paid on long-term loan
Before-tax operating profit
Capitalized costs
Corporate income tax
Long-term loan repayment
Outstanding loan
Cost of water
Cost of chemicals
Cost of land rental
Fixed O&M
Variable O&M
Cost of Electricity
Total contract demand (Thousand RT)
Total chilled water sale (Million RTh)
Total electricity energy sale ( G Wh)
Contract demand charge (Thousand RM/RT)
Energy charge of chilled water (RM/RTh)
Natural gas cost ( RM$/m3)
Sales revenue ( electricity) (Million RM)
Sales revenue ( chilled water sales) (Million RM)
Equity invested (incl. Interest during constr.)
Cost of natural gas

7. PROJECT SCHEDULE

8. PROJECT TECH
SUMMARY
Location: Petronas MLNG processing plant , Bintulu
Land Owner: Petronas MLNG Sdn Bhd
Fuel Source: Waste Heat from existing gas turbine
Off-taker: Petronas MLNG to purchase chilled water
produced by the TIAC plant
Approval: Authority approval not applicable(captive use).
Project Study: EIA to be complete as addendum. Financial
model prepared. Project prelim study issued to
Petronas MLNG.
Present Production LNG: XXX Metric Ton
Additional Production : XXX metric ton(10% increase)
Additional sales of LNG: X billion RM/year
Chilled water Prdn: XXXXX RT / hr

9. This project development is
based on Build, Own, and
Transfer (BOT). The Project’s
funder will provide the 100%
financing. Funder work as a
consortium with Tati Pro
Energy Sdn. Bhd. who will be
the project management
leader to undertake the
contract implementation.
The technology is licensed by XXXXXXXX. They will undertake the construction
through the EPCC contractor supported by Sarawakian Companies as contractor.
PROJECT SCHEME

10. Turbine Inlet Air Cooling (TIAC)
technology will increase the existing
gas turbine performance by cooling
its inlet and as the result it will
increase production of LNG about
10%. The additional production of
LNG by calculation worth of RM2.0
billion per year.
The TIAC technology use waste heat generated by hot turbines as fuel
source, converting it into steam using HRSG & then further convert it into
chilled water using chillers. The chilled water is then used to cool turbine
inlet temperature.
TIAC will reduce carbon dioxide emission & extended life cycle of
equipment. Therefore, cost of maintenance will also be reduced. TIAC system
have others benefit such as it will reduce operating cost by reducing the fuel
quantity.
THE TECHNOLOGY

11. Chilled water produced by the TIAC plant is used to cool the gas turbines and also LNG
processing system. Presently the LNG cooling system use electric chiller which contribute
a high operation cost. The electric chiller will be scrapped upon installation the TIAC plant.
TIAC OPERATION DIAGRAM

12. The EPCC Contractor, having vast experience in power generation using
cogeneration technology (see profile), is now moving forward with value
added technology TIAC, provides benefit to Petronas MNLG Bintulu LNG
processing plants.
The EPCC Contractor and Tati Pro Energy Sdn Bhd had inked an agreement
to develop the TIAC plant and now having a reputable sponsor to fund the
project 100%. The EPCC Contractor will be the exclusive lead EPCC
contractor.
The EPCC Contractor had constructed several TIAC projects of this kind in
USA and worldwide used for power plants and LNG processed plants which
works successfully.
In line with this proposed project, Petronas via its engineering arm, has
been in process of developing the FEED for this proposed project for the
past years.
Technology Provider

13. As the land owner, Petronas will provide land and waste heat from hot
turbines as the fuel source for this TIAC plant.
Petronas MLNG will pay to the developer for the chilled water used to
cool the turbines at an agreed price.
Petronas MLNG will get an additional production of LNG valued at RM
2billion per year by selling the LNG derived from increase of performance
of the turbines by 10% which is being cooled by the chilled water
The good thing for Petronas MLNG is that it get the benefit (additional
LNG production) at no cost in building the TIAC plant as it is on BOT
concept.
Petronas MLNG will owned the operating plant after handover upon 20
years maturity.
This Green project is a WIN-WIN for both the Sponsor and Petronas
MLNG Petronas benefit

14. The Project sponsor will earn from the selling of chilled water to Petronas MLNG
which is produced by the TIAC cooling plant. The chilled water is used to cool
the inlet of gas turbines and also be used to cool the LNG cooling system within
the processing complex.
We as the consortium partners, supported with the EPCC contractor as the
technology provider, express our interest (EOI) to develop the project under the
concept of Build Own and Transfer (BOT).
The EPCC contractor proposed consortium between Tati Pro Energy Sdn Bhd
and the Financier, whereby the EPCC contractor will be the exclusive lead EPCC
contractor.
In line with this proposed project, Petronas via its engineering arm, has been in
process of developing the FEED for this proposed project.
This Green project is a WIN-WIN for both the Sponsor and Petronas
Developer Benefit

15. This Project will help to intensify the vision of the Sarawak
Government to produce more qualified Sarawakian involving in high
technology pursuit in oil and gas sector.
It helps to spur the economic growth to the State by having this Private
Investment.
It will help to develop more activities for Sarawak subcontractors,
suppliers and other downstream business in Sarawak.
As state government is also a shareholder for MNLG Petronas, It is also
at no cost to Sarawak State to develop the TIAC plant as it is on BOT
concept.
State Government Benefit

16. Thank You
Prepared by:
Dato’ Ir. Hj. Mat Isa Kadir
for
TATI Pro Energy Sdn Bhd
datohjmatisa@gmail.com