It does not remove or make the Fog look distant. The Mod changes the fog power from 8 to 1 to reduce the lag issues in certain areas. The Mod also addresses the severe fog problem in the game, especially in Interior places and locations. If you are facing serious lag issues at random areas or times, then I highly recommend using the Mod. It will also bend the color of Night areas and the shadows would look lighter compared to before. Once the Mod is installed and enabled, the shadows in your game would be removed, for the most part, or slightly tweaked to reduce the lag.
This mod specifically aims to reduce the lag and stuttering in the game simply by tweaking a few graphic related options. You may visit the official pages of the Mod to know more about it and also how to use it on your PC to fix the lag issues in your game. There are actually a handful number of Mods available, created by third-party developers from the community itself. See also Fix Err_Tunnel_Connection_Failed