Investments in floating liquefied natural gas (FLNG) production terminals are poised to increase sharply in the next four years, driven by Europe’s need to displace Russian natural gas imports and Asia’s ongoing shift away from coal, according to an analysis from Westwood Global Energy Group.

Market research firm Westwood expects 18.3 million metric tons/year (mmty) of additional floating liquefaction facilities to come online by 2027. That would represent an engineering, procurement and construction (EPC) award value of $13 billion, according to Westwood’s Mark Adeosun, director of the firm’s PlatformLogix service, which covers fixed and floating production terminals worldwide.

“With increasing energy demand and the challenges of energy security, the need for gas to...