The Petroleum (Natural Gas Pricing) Regulations, 2020

1. The mechanism for arriving to the weighted average well head natural gas price has two steps. The first step involve validating the volumes and prices per each gas field as outlined below- (a) GF1 is gas field 1, with V1 as projected volume for domestic gas and P1 as the projected price for domestic gas negotiated by the parties and approved by PURA; GF2 is gas field 2, with V2 as projected volume for domestic gas and P2 as the projected price for domestic gas negotiated by the parties and approved by PURA; and GF3 is gas field 3, with V3 as projected volume for domestic gas and P3 as the projected price for domestic gas negotiated by the parties and approved by PURA. (b) (c)

2. Derivation of uniform delivered pool price of weighted average natural gas price for all natural gas fields- where, WAP is the weighted average price of natural gas P1 is the natural gas price for gas field 1 negotiated by the parties and approved by PURA; P2 is the natural gas price for gas field 2 negotiated by the parties and approved by PURA; P3 is the natural gas price for gas field 3 negotiated by the parties and approved by PURA; V1 is the projected volume of domestic natural gas from gas field 1; V2 is the projected volume of domestic natural gas from gas field 2; and V3 is the projected volume of domestic natural gas from gas field 3. Dodoma, 4th May, 2020 MEDARD M. C. KALEMANI Minister for Energy 27