fIRST mODULAR GAS

First Modular Gas Systems Limited (FMGSL) is a midstream energy company established in 2016 to develop, own and operate distributed gas processing plants in Nigeria.

Our goal is to create value by monetising natural gas that will otherwise be flared or stranded and processing to produce Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG or cooking gas) which will be sold under offtake agreements to key product distributors. In the future FMGSL will expand into mini-LNG and other additional virtual pipeline strategies.

The CNG and LPG which will ultimately be made available to commercial and industrial (C&I) users and households, are cheaper and cleaner sources of fuel and are expected to displace diesel, kerosene and firewood and other more polluting fuels and thus contribute to a cleaner and healthier environment.

FMGSL has commenced the development of its first gas processing plant at Umueje, Ayamelum Local Government Area in Anambra State. The plant is located near the early production facilities of Orient Petroleum Resources PLC (OPR), an upstream oil and gas producer and operator of Oil Prospecting Licenses (OPLs) 915 and 916. The plant will receive natural gas under a 20-year Gas Sale and Purchase Agreement (GSPA) executed with OPR, commencing with 5 million standard cubic feet per day (mmscf/d) and growing to a 10 mmscf/d within the first two years of operation.

• FMGSL has partnered with an experienced international Engineering, Procurement and Construction (EPC) firm with a track record of developing similar projects in Nigeria and other frontier and emerging markets under a turnkey agreement. The EPC will also provide operations and maintenance with a full process guarantee.
• FMGSL has secured its License to Establish (LTE) from the Department of Petroleum Resources and expects to receive its Authority to Construct (ATC) in Q3 2019.
• The Environmental Impact Assessment has been undertaken to cover required international and Nigerian standards and a final approval is expected in early Q3 2019.
• A 50 year lease for the land has been acquired as well as the execution of the tripartite Memorandum of Agreement (MOA) with OPR, the Host Community and FMGSL.

FMGSL has also executed a 5 mmscf/d GSPA with Millenium Oil and Gas operator of the Oza field in OML 11 and is progressing on the project development of that plant. The company is also in advanced discussions with other upstream gas suppliers to acquire their gas under long term agreements as well as expects to actively participate in the Nigeria Gas Flare Commercialisation Program (NGFCP).

These first two projects constitute the phase one development for a total of 15mmscf/d processing capacity. The resultant reduction in C02 emission from the deployment of the 15mmscf/d plant at the OPR and Millenium locations is detailed below:

• Avoiding the flaring of 15mmscf/d of gas will reduce C02 emissions by 271,013 tonnes annually.
• Replacing 129 million litres of diesel for power generation annually with CNG will lead to an annual reduction in C02 emission by 111,884 tonnes
• The projects provide up to ~ 56MW of low emission generation capacity
• Replacing kerosene, firewood, charcoal and other dirty fuels for cooking with LPG will provide additional reduction in C02 emissions and related pollution.

Increasing access to cleaner cooking fuels is also expected to improve the living standards of women and children who are most susceptible to the harmful effects of pollution from cooking fuels at home.

The second phase will see us developing additional facilities to build up to 50 mmscf/d of plant processing capacity by 2022.