A chemical production company in Israel said it is producing up to 40 percent more natural gas than before, but is not yet producing enough for Israeli consumers.
The company, SIPL, said in a statement Monday that the production increases are due to a surge in the number of wells it has drilled and more drilling rigs are being used to drill more wells.
The statement came a day after the Israeli Supreme Court overturned a ruling that ordered the government to pay SIPO a $10 million fine for not providing enough permits for new wells in the country.
The court said the company failed to provide enough permits to the government and the government did not provide sufficient funds to pay the costs.
The ruling came just days after Israel announced a $1 billion investment to boost production of natural gas and to expand its gas processing plant.
Israeli officials say the money will be used to increase production of gas from shale gas.
But SIPLO says that its natural gas is now being processed by the government’s Natural Gas Processing Plant, which was created by a 2008 law.
The plant is also the largest producer of natural, low-cost natural gas in Israel, with a capacity of 10.5 million cubic meters per day.
According to the company, the increase in production is due to “a large number of new wells being drilled in the gas field.”
But the company said it has not yet decided whether it will continue to drill new wells.
SIPOL said that the increase is not as large as what it had predicted but the company expects to reach an additional 1 billion cubic meters of natural and low-priced gas by 2021.