The US Department of the Interior (DOI) and TotalEnergies have finalized settlement agreements to terminate the company’s two offshore wind leases in the United States. The settlement confirms reports of a deal in which TotalEnergies will be reimbursed $928 million in lease fees.
TotalEnergies, along with its partners, will give up offshore wind lease areas in Carolina Long Bay and New York Bight, recovering the lease fees from the US government. The company plans to reinvest this amount in the construction of the 29 Mt Rio Grande LNG plant and expand its oil and gas activities in the US, according to TotalEnergies’ March 23 statement.
According to a DOI press release, TotalEnergies has also “pledged not to develop any new offshore wind projects in the United States.”
TotalEnergies secured the lease areas in 2022: first, the Attentive Energy lease area in New York Bight (OCS-A 0538) and then Carolina Long Bay (OCS-A 0545). The company and its partners bid $795 million for the New York Bight and $160 million for Carolina Long Bay.
The DOI noted that the New York Bight lease OCS-A 0538 was executed by Attentive Energy on May 1, 2022, after a $795 million payment. The Carolina Long Bay lease, listed as OCS-A 0535, was executed by TotalEnergies on June 1, 2022, after a payment exceeding $133.3 million.
The DOI confirmed on March 23 that TotalEnergies plans to invest the reimbursed $928 million in 2026 to develop Train 1 to 4 of the Rio Grande LNG plant in Texas, and in expanding oil and shale gas production in the Gulf of America.
TotalEnergies, NextDecade, and partners Global Infrastructure Partners (GIP), GIC, and Mubadala made the final investment decision for Train 4 of Rio Grande LNG in September 2025, according to a report from Offshore Energy.
Totally Not All Energies
The DOI indicated that TotalEnergies would redirect funds from “expensive, unreliable offshore wind leases toward affordable, reliable natural gas projects.”
The DOI stated in the press release that this agreement is part of “President Donald J. Trump’s Energy Dominance Agenda,” ensuring taxpayers no longer fund subsidies for the offshore wind industry.
TotalEnergies announced that US offshore wind developments are “costly and might negatively impact power affordability for U.S. consumers.” The company sees better technology alternatives to meet US electricity demand.
The company’s oil & gas projects will support both domestic and European demand. TotalEnergies has several gigawatt-scale offshore wind projects in Europe and Asia-Pacific and is exploring projects in Brazil.
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“This agreement allows us to reinvest refunded lease fees to finance U.S. gas production and export, contributing to Europe’s LNG supply and U.S. data center gas needs. It’s a more efficient use of capital in the U.S.,” said Patrick Pouyanné, TotalEnergies’ CEO.
Oceantic Network, representing the US offshore renewable energy industry, criticized the settlement for not aligning with national needs and impacting consumer bills.
“After attempts to block offshore wind through legal means, the administration is spending $1 billion to push developers out, wrapped in a false narrative about affordability and security,” said Sam Salustro, SVP of Policy & Market Affairs at Oceantic Network.
Salustro highlighted that security claims were dismissed by federal judges and approved by the DOI and Department of Defense before construction. Offshore wind remains a part of US energy policy, continuing to create jobs and maintain reliable, affordable power.
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Original Story at www.offshorewind.biz