The energy ministry in April lowered the price of natural gas sold to power plants to $6 per million British thermal units (mmBtu) from $8.40.

But the price cap has created hurdles for a few gas projects, namely one with Repsol [REPIF.UL],
which last year announced Indonesia's biggest gas discovery in 18 years. [https://reut.rs/2XC3BJo]

"We are having a tough discussion... we are determining whether (the project) can continue or not," Arief Setiawan Handoko, deputy head of finance at SKK Migas, told a virtual conference.

"The price should not be more than $6, even though according to contractors, the economic price is above $7," he added.

Other projects that are seeing a similar tussle about prices included Genting Oil's project in West Papua and Inpex Corp's $20 billion Masela natural gas project, Handoko said.

Indonesia also has capped gas prices at $6 per mmBtu for the fertiliser, petrochemical, oleochemical, steel, ceramics, glass and rubber gloves industries.

(Reporting by Bernadette Christina Munthe; writing by Fathin Ungku; editing by Jason Neely)