TotalEnergies (Paris: TTE) (LSE: TTE) (NYSE: TTE) has reached settlement agreements with the United States Department of the Interior (DOI) to surrender its Carolina Long Bay lease (OCS-A 0545) and its New York Bight lease (OCS-A 0538), both of which were awarded in 2022. This offshore wind exit by TotalEnergies is basically a final chapter for the Company’s offshore wind plans in the U.S. market and reflects the Company’s latest company updates and strategies.
Figure 1: TotalEnergies logo on the outside of its office building [Courtesy: BNN Bloomberg]
Under the terms of the settlement, TotalEnergies will recover the lease fees paid and reinvest an equal amount into the development of US gas and power production and exports. The decision reflects a broader strategic pivot, with the Rio Grande LNG project and oil and gas activities now positioned as the primary beneficiaries of the redirected capital.
Costly Economics Drive the US Offshore Wind Exit
TotalEnergies’ internal studies on both leases concluded that offshore wind development in the United States, unlike projects in Europe, carries high costs that could have a negative impact on power affordability for American consumers. The Company determined that since other technologies are available to meet growing electricity demand in a more affordable way, there is no need to allocate capital to this technology in the US market.
Patrick Pouyanné Signals a Clear Shift in Capital Allocation
Chairman and Chief Executive Officer Patrick Pouyanné explained the rationale directly in the settlement announcement. He stated: “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.”
Figure 2: Patrick Pouyanné, as Chairman and CEO of TotalEnergies [Courtesy: TotalEnergies]
Pouyanné further added: “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 US gas production and export. We believe this is a more efficient use of capital in the United States.”
Rio Grande LNG Project Takes Centre Stage in the US Strategy
With the TotalEnergies offshore wind exit now formalised, the Rio Grande LNG project emerges as the centrepiece of the Company’s US investment strategy and one of its latest company updates and strategies. The project, a 29 million metric ton per annum (Mtpa) liquefied natural gas facility, is being positioned as a strategic export asset to supply Europe with LNG from the United States and to provide gas for US data centre development.
A 20-Year Offtake Agreement Adds Further LNG Commitment
TotalEnergies has also signed a Letter of Intent with Glenfarne, the lead developer of the Alaska LNG project, for the long-term offtake of 2 Mtpa of LNG over 20 years, subject to the project’s final investment decision. This agreement further deepens the Company’s integrated position across the US LNG value chain, from upstream gas production in Texas and offshore US assets through to export.
TotalEnergies exported 19 million metric tons of US LNG in 2025, which makes it kind of the number one exporter of US LNG worldwide. Like, since 2022, the Company has put almost US$12 billion into the United States across oil, LNG, and electricity, or what you could call energy generation.
TotalEnergies’ Broader US Footprint Remains Substantial
The US offshore wind exit does not diminish TotalEnergies’ overall presence in the United States. The Company has been doing things in the country since 1957, and at the moment, it handles about 10 gigawatts of installed power capacity as part of its Integrated Power strategy, pretty much. TotalEnergies says it’s a global integrated energy company, producing as well as merchandising oil and biofuels, while also dealing with natural gas, biogas, low-carbon hydrogen, renewables, and electricity across around 120 countries, and with over 100,000 employees.
For the Company’s US direction, the strategy stays guided by its integrated energy model. It keeps gas and power in balance, with selective renewables deployment, where the numbers make sense or where it supports economics. The TotalEnergies offshore wind exit in the US is not really a kind of worldwide retreat from renewables; it’s more like a capital allocation choice tied to the US market conditions.
TotalEnergies Share Price
TotalEnergies (Paris: TTE) (LSE: TTE) (NYSE: TTE) right now looks like it is trading at EUR 76.05 per share, and the overall company value sits around GBP 143,642.64 million. For the past 52 weeks, the trading corridor has been pretty wide, with EUR 47.66 on the low end up to EUR 79.43 per share, give or take.
Figure 3: TotalEnergies share price performance over the past year [Courtesy: LSE]
Industry Outlook
The US offshore wind exit by a major global energy player kind of reflects, in a roundabout way, growing industry-wide concerns about how the project economics are actually panning out in the American market. As construction costs keep climbing, plus supply chain constraints and grid connection challenges that feel pretty persistent have weighed on the whole sector, a number of developers are now slowly reassessing their commitments, like it’s not as straightforward as before.
At the same time, LNG export capacity from the United States keeps expanding quite rapidly. This is being driven by strong European demand for supply diversification away from Russian gas, and also by growing Asian appetite. So, for integrated energy companies, the economics of US LNG investment right now offer a more compelling risk-adjusted return than offshore wind development within the same market.
Future Direction and Impact on Energy Markets and Investors
The redirection of capital from the US offshore wind exit into the Rio Grande LNG project and oil and gas activities positions TotalEnergies as an increasingly important node in transatlantic energy supply chains. The 29 Mtpa Rio Grande LNG project, if it gets to a final investment decision, would, kind of, be among the largest LNG export facilities in the United States. Put together with the Alaska LNG offtake agreement, TotalEnergies is sort of assembling a multi- project LNG portfolio with long-duration revenue visibility.
For investors, the settlement structure is actually the part people notice, while also highlighting TotalEnergies’ latest company updates and strategies around LNG expansion and capital allocation. This way, there is no write-off, while exposure to US gas and power growth ramps up quickly.
Frequently Asked Questions
Q1. What is the TotalEnergies offshore wind exit?
TotalEnergies kind of exited the U.S. offshore wind scene by relinquishing its two leases that were awarded in 2022, so it is gone for now.
Q2. Where do the lease fees that TotalEnergies paid go?
Ans. As per the terms of the settlement, TotalEnergies will receive full reimbursement of the amount of lease fees paid and will inject the same amount of capital into production and exports of gas and power in the United States, including the Rio Grande LNG project.
Q3. What does the Rio Grande LNG project entail?
Ans. The Rio Grande LNG project is a 29 Mtpa LNG project being financed under TotalEnergies’ US gas and power strategy, to provide LNG to the European market and serve data centre gas demand in the United States.
Q4. Does the U.S. offshore wind position impact TotalEnergies around the world?
No. The choice is dependent on the economy in the United States. Offshore wind and renewable energy projects are ongoing at TotalEnergies around the world.
Q5. How many molecules of LNG are to be offtaken from Alaska?
TotalEnergies inked an LOI to procure 2 Mtpa LNG from Alaska LNG for 20 years in support of conditional FID.
Disclaimer
The information in this article is for information purposes only and should not be used as financial or investment advice. All information is taken from the TotalEnergies regulatory announcement of 24 Mar 2026 and supplementary reporting from published sources. Share Price and Market Capitalisation are as of the time of publishing the report. Securities investments are speculative. Any investment decisions should be made after readers have carried out their own research and obtained independent financial advice. There is no position of Colitco with any of the companies or organisations referred to.
Sources
- https://www.londonstockexchange.com/news-article/TTE/united-states-totalenergies-signs-agreements-with-u-s-department-of-interior-to-end-its-u-s-offshore-wind-projects/17516979
- https://www.londonstockexchange.com/stock/TTE/totalenergies-se/company-page
- https://mining.com.au/totalenergies-ends-us-offshore-wind-projects/
