TotalEnergies Exits U.S. Offshore Wind, Signals Increased Investment in Gas Projects

TotalEnergies has signed settlement agreements with the United States Department of the Interior to exit offshore wind development projects in the United States.

Under the agreements, the company will relinquish its Carolina Long Bay and New York Bight leases, which were awarded in 2022. The move marks a strategic shift in TotalEnergies’ investment approach, effectively ending its pursuit of offshore wind projects in the U.S.

As part of the settlement, TotalEnergies will recover the lease fees it previously paid and reinvest an equivalent amount into U.S. gas and power production, as well as export projects.

The company stated that its studies indicate offshore wind projects in the United States remain costly and could negatively impact electricity affordability for consumers. It added that alternative technologies can meet rising electricity demand more efficiently, leading to its decision not to allocate further capital to offshore wind in the country.

Commenting on the development, Chairman and CEO Patrick Pouyanné said the company supports current U.S. energy policy.

“TotalEnergies is pleased to sign these settlement agreements with the DOI and to support the Administration’s energy policy. Considering that the development of offshore wind projects is not in the country’s interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees.”

He added that the refunded funds will be redirected toward gas investments, including the construction of the 29 million tonnes Rio Grande LNG plant and the expansion of oil and gas activities.

“Furthermore, these agreements, under which we will reinvest the refunded lease fees to finance the construction of the 29 Mt Rio Grande LNG plant and the development of our oil and gas activities, allow us to support the development of U.S. gas production and exports. These investments will contribute to supplying Europe with much-needed LNG from the U.S. and provide gas for U.S. data center development. We believe this is a more efficient use of capital in the United States.”

In addition, TotalEnergies recently signed a Letter of Intent with Glenfarne for the long-term offtake of 2 million tonnes per year of LNG from the Alaska LNG project over a 20-year period, subject to a final investment decision.

TotalEnergies continues to expand its integrated energy model in the United States, where it has operated since 1957. Since 2022, the company has invested nearly $12 billion in U.S. energy projects, focusing on oil, LNG, and electricity development. It also maintains upstream gas production assets in Texas and offshore U.S. regions.