TotalEnergies has finalised settlement agreements with the US Department of the Interior (DOI) to relinquish its offshore wind leases in both the Carolina Long Bay and New York Bight areas, marking a full departure from offshore wind development in the United States.
The agreements cover Lease OCS-A 0545 and Lease OCS-A 0538, both originally awarded to the company and its partners in 2022.
Under the settlements, TotalEnergies will be reimbursed for the lease fees it had previously paid and will reinvest an equivalent amount (approximately US$1 billion) into domestic oil, gas, and liquefied natural gas (LNG) projects.
The company stated that its studies of the US offshore wind market revealed higher costs and lower economic efficiency compared with similar projects in Europe.
It concluded that offshore wind developments could negatively affect power affordability for American consumers, prompting the decision to redirect its US energy investments toward more cost-effective technologies.
As part of the agreement, TotalEnergies has committed to supporting the Administration’s energy policy by refocusing its capital toward American natural gas production and export.
The company will invest approximately US$928 million into the development of the Rio Grande LNG plant in Texas, including Trains 1 to 4, as well as the advancement of upstream conventional oil projects in the Gulf of Mexico and shale gas production operations.
Following these investments, the US government will terminate the company’s two offshore wind leases and reimburse the corresponding payments: $133 million for the Carolina Long Bay area lease and $795 million for the New York Bight lease.
According to the Department of the Interior, the agreement is part of an effort to prioritise affordable, reliable energy production and reduce dependence on high-cost renewable technologies.
The initiative aligns with President Donald J. Trump’s Energy Dominance Agenda, which emphasises enhancing energy security, lowering consumer costs, and supporting domestic production over subsidised renewable ventures.
TotalEnergies’ shift highlights its view that the most efficient use of capital in the United States lies in gas and LNG development.
The company emphasised that these projects will contribute to supplying Europe with additional LNG exports and meeting the increasing energy needs of US data centres—two sectors experiencing rapid growth.
In parallel, TotalEnergies recently signed a Letter of Intent with Glenfarne Group, developer of the Alaska LNG project, for the long-term purchase of 1.81 million tonnes per year of LNG over a 20-year period, contingent upon a final investment decision.
With the settlement now complete, TotalEnergies has formally committed not to pursue future offshore wind projects in the United States.
The company’s pivot toward natural gas and LNG reflects a broader strategic move to balance environmental goals with economic viability, while aligning its energy portfolio with market realities and policy direction in its target regions.
