U.S. deal ends TotalEnergies offshore wind plans, accelerates LNG investment

(WO) - TotalEnergies has agreed to relinquish its U.S. offshore wind leases under a settlement with the Department of the Interior, redirecting capital toward LNG, gas production and export infrastructure.

The company will exit the Carolina Long Bay and New York Bight leases, both awarded in 2022, effectively ending its offshore wind development plans in the United States. Under the agreement, TotalEnergies will recover the lease fees paid and reinvest an equivalent amount into U.S. gas and power projects.

The move reflects a broader shift in capital allocation as the company prioritizes investments aligned with growing global demand for natural gas and LNG. TotalEnergies said its evaluation of the U.S. offshore wind projects indicated higher development costs compared to similar projects in Europe, raising concerns over long-term power affordability.

Reallocated funds are expected to support key LNG developments, including the 29-MMtpa Rio Grande LNG project, as well as upstream oil and gas activities. The company is also advancing its LNG portfolio through a recently signed letter of intent for the long-term offtake of 2 MMtpa from the proposed Alaska LNG project, subject to final investment decision.

The pivot comes as U.S. energy policy increasingly favors domestic production and export capacity, particularly for natural gas, amid rising global demand and ongoing supply uncertainty in international markets.

For TotalEnergies, the strategy underscores a focus on scalable, lower-cost energy sources and export-oriented infrastructure. LNG continues to play a central role in the company’s global portfolio, supporting both energy security and long-term supply commitments to key markets, including Europe.

The exit from offshore wind in the U.S. highlights diverging regional economics for renewable projects, while reinforcing the company’s near-term emphasis on gas and LNG as core growth drivers.