Russian independent Novatek has increased capital investments this year despite the energy market turmoil and declining profitability of its operations.

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Investments into its upstream development projects, including Arctic LNG 2 on the Gydan Peninsula in West Siberia, rose to over 142 billion roubles ($1.8 billion) between January and September this year, up 29% year-on-year.

Its investments into Arctic LNG 2 since the start-up of the project totalled almost 239 billion roubles as of the end of last month.

Total investments to bring online three liquefaction trains at Arctic LNG 2 are estimated at $27 billion, with the project shareholders reportedly working on arranging financing from Russian, European, Japanese and Chinese financial institutions.

Novatek’s gas producing venture with state-controlled Gazprom Neft, Arcticgaz, took investments of 148 billion roubles from Novatek, as a massive construction effort continued at its gas and condensate fields in West Siberia to gradually bring the company’s output to planned plateau level.

Despite seeing wide-ranging support from the Russian government for its major liquefied natural gas projects, Novatek has not remained immune from the drop in international energy prices and contraction of demand, with revenues declining by 23% to 492 billion roubles in the first nine months of the year.

Novatek reported revenues of 126 billion roubles in the third quarter as against 141 billion roubles a year earlier, reflecting improvements in demand for gas and condensate.

It posted net income of just 24 billion roubles compared with 821 billion roubles a year earlier.

Novatek posted a slight growth in gas production to 56.7 billion cubic metres between January and September, while overall Russian gas production declined by over 9% to 430 Bcm, with shipments of LNG from company-led Yamal LNG rising under long-term contracts with its customers in Asia.