TotalEnergies has signed agreements with the U.S. Department of the Interior to cease the development of offshore wind power projects in the country.
End of U.S. Offshore Wind Projects
Specifically, the company relinquished its concessions in Carolina Long Bay and New York Bight, granted in 2022 along with its partners. This decision implies the definitive abandonment of its expansion plans in offshore wind within U.S. territory.
As stipulated in the agreements, TotalEnergies will recover the previously paid lease rights. Furthermore, the company has committed to reinvesting an equivalent amount in energy projects focused on gas and electricity production and export in the United States.
High Costs and Reduced Competitiveness
On the other hand, the company’s internal studies concluded that offshore wind power projects in the United States present significantly higher costs compared to Europe. This situation could negatively impact electricity affordability for consumers.
Additionally, the U.S. energy landscape offers more competitive alternatives to meet the growing electricity demand. In this scenario, TotalEnergies considers that allocating capital to offshore wind is not economically efficient.
Reorientation towards Natural Gas and LNG
Consequently, the company will redirect its investment towards the development of natural gas, especially in liquefied natural gas (LNG) projects. Among these, the future Rio Grande LNG plant with a capacity of 29 million tons stands out.
This strategy also includes long-term supply agreements, such as the letter of intent signed with Glenfarne to acquire up to 2 million tons of LNG annually for 20 years, subject to the final investment decision.
Impact on Energy Policy and the Market
From the Department of the Interior, the agreement has been presented as a measure to prioritize more reliable and affordable energy sources, in line with the U.S. administration’s energy policy.
In the words of Patrick Pouyanné, CEO of TotalEnergies, this decision allows for optimizing capital use and supporting the development of gas exports from the United States, contributing to both domestic energy supply and international demand, especially in Europe.
United States, Key to TotalEnergies’ Strategy
It is worth noting that the United States remains a priority market for TotalEnergies. The company has invested nearly $12 billion since 2022 in the country and leads LNG exports with 19 million tons in 2025.
Likewise, it maintains an integrated energy strategy that encompasses oil, gas, and electricity, with an installed capacity of 10 GW in U.S. territory.
Source: TotalEnergies
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