TotalEnergies (Paris: TTE) (LSE: TTE) (NYSE: TTE) has signed settlement agreements with the United States Department of the Interior (DOI) on 24 Mar 2026, relinquishing its Carolina Long Bay lease (OCS-A 0545) and its New York Bight lease (OCS-A 0538), both awarded in 2022, along with its partners. The TotalEnergies offshore wind exit marks a definitive end to the Company’s offshore wind ambitions in the United States.
Figure 1: TotalEnergies logo displayed on its office building exterior [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, 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. 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, making it the number one exporter of US LNG globally. Since 2022, the Company has invested nearly US$12 billion in the United States across oil, LNG and electricity.
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 active in the country since 1957 and currently operates 10 gigawatts of installed power capacity as part of its Integrated Power strategy. TotalEnergies describes itself as a global integrated energy company producing and marketing oil and biofuels, natural gas, biogas, low-carbon hydrogen, renewables and electricity across approximately 120 countries with more than 100,000 employees.
The Company’s US strategy continues to be guided by its integrated energy model, balancing gas and power with selective renewable deployment where economics support it. The TotalEnergies offshore wind exit in the US does not signal a global retreat from renewables but rather a capital allocation decision specific to the US market conditions.
TotalEnergies Share Price
TotalEnergies (Paris: TTE) (LSE: TTE) (NYSE: TTE) is currently trading at EUR 76.05 per share, with a market capitalisation of GBP 143,642.64 million. The 52-week range stands at EUR 47.66 to EUR 79.43 per share.
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 reflects growing industry-wide concerns about project economics in the American market. Rising construction costs, supply chain constraints and grid connection challenges have weighed on the sector, prompting several developers to reassess commitments.
Meanwhile, LNG export capacity from the United States continues to expand rapidly, driven by strong European demand for supply diversification away from Russian gas and growing Asian appetite. For integrated energy companies, the economics of US LNG investment currently present a more compelling risk-adjusted return than offshore wind development in 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 brought to final investment decision, would represent one of the largest LNG export facilities in the United States. Combined with the Alaska LNG offtake agreement, TotalEnergies is building a multi-project LNG portfolio with long-duration revenue visibility.
For investors, the settlement structure is notable: the Company recovers its lease fees in full and redeploys them into higher-conviction assets, avoiding a write-off while accelerating exposure to US gas and power growth.
Frequently Asked Questions
Q1. What is the TotalEnergies offshore wind exit?
Ans. TotalEnergies has signed settlement agreements with the US Department of the Interior to relinquish its two US offshore wind leases awarded in 2022, ending all offshore wind development activity in the United States.
Q2. What happens to the lease fees TotalEnergies paid?
Ans. Under the settlement terms, TotalEnergies will recover the full amount of lease fees paid and reinvest an equal amount into US gas and power production and exports, including the Rio Grande LNG project.
Q3. What is the Rio Grande LNG project?
Ans. The Rio Grande LNG project is a 29 Mtpa liquefied natural gas facility that TotalEnergies is financing as part of its US gas and power strategy, aimed at supplying Europe with LNG and supporting US data centre gas demand.
Q4. Does the US offshore wind exit affect TotalEnergies globally?
Ans. No. The decision is specific to US market economics. TotalEnergies continues to develop offshore wind projects in Europe and remains active in renewables globally as part of its integrated energy model.
Q5. What is the Alaska LNG offtake agreement?
Ans. TotalEnergies has signed a Letter of Intent with Glenfarne for the long-term offtake of 2 Mtpa of LNG from the Alaska LNG project over 20 years, subject to the project reaching a final investment decision.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. All content is based on the regulatory announcement issued by TotalEnergies on 24 Mar 2026 and supplementary reporting from published sources. Share price and market capitalisation data reflect figures provided at the time of publication. Investing in securities involves risk. Readers should conduct their own research and seek independent financial advice before making any investment decisions. Colitco does not hold any position in the companies or organisations mentioned.
Sources
https://www.londonstockexchange.com/stock/TTE/totalenergies-se/company-page
https://mining.com.au/totalenergies-ends-us-offshore-wind-projects/
