Africa Infra Plus Fund (or AIPF), a special situations infrastructure fund managed by Africa Plus Partners Nigeria, is investing equity in First Modular Gas Systems, (FMGSL), helping it reach financial close on a project to develop its first gas processing plant in Nigeria’s Anambra State. While the precise amount being invested by AIPF remains undisclosed, Africa Capital Digest has learned that it is the greater part of the $16 million needed to develop the new plant.
Africa Plus Partners Nigeria’s CEO Anhad Narula and CIO Adeniran Ajkaiye led the deal for AIPF which now holds a majority stake in FMGSL. Both join the company’s board of directors, along with their colleague Oladipo Lawore. FMGSL was originally founded by Àrgentil Capital Management in partnership with Dharmattan Gas Facilities with the aim of building a leading midstream energy company developing and operating distributed gas processing facilities in multiple locations in the near term, with a capacity of 50mmmscf/d. The company’s phase 1 development will see it deploy two plants in South Eastern Nigeria to process as much as 15mmscf/d that would otherwise be flared. This will replace the equivalent of 129 million litres of diesel power generation annually with compressed natural gas, directly reducing hundreds of thousands of CO2 emissions every year.