TotalEnergies Exits U.S. Offshore Wind to Double Down on LNG and Gas

An update from TotalEnergies SE ( (FR:TTE) ) is now available.

TotalEnergies has signed settlement agreements with the U.S. Department of the Interior to relinquish its Carolina Long Bay and New York Bight offshore wind leases, ending its plans to develop offshore wind projects in the United States. The company concluded that U.S. offshore wind is too costly compared with alternatives and could harm power affordability, prompting a strategic shift away from this technology in that market.

Under the settlement, TotalEnergies will recover its lease fees and reinvest an equivalent amount into U.S. gas and power production and exports, including financing the 29 Mt Rio Grande LNG plant and expanding oil and gas activities. The group also recently signed a letter of intent with Glenfarne for long-term offtake of 2 million tons per year of LNG from the Alaska LNG project, reinforcing its focus on U.S. LNG supply for Europe and domestic data center demand.

The decision underscores TotalEnergies’ view that gas and LNG offer a more efficient use of capital in the U.S. than offshore wind, while still aligning with U.S. energy policy priorities. For stakeholders, the move strengthens the company’s LNG and gas footprint and supports European energy security, but marks a retreat from a potentially significant segment of the U.S. renewables market.

More about TotalEnergies SE

TotalEnergies is a global integrated energy company active across oil and biofuels, natural gas and LNG, biogas, low-carbon hydrogen, renewables and electricity. Operating in about 120 countries and present in the United States since 1957, it has invested nearly $12 billion in U.S. oil, LNG and power since 2022, and is the leading exporter of U.S. LNG with 19 million tons expected in 2025.

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