The Department of the Interior announced on Mar. 23 a new agreement with TotalEnergies that will see the company move funds from offshore wind leases to oil, natural gas, and liquefied natural gas (LNG) projects in the United States.
The agreement is significant as it redirects about $1 billion—originally spent by TotalEnergies on offshore wind leases—toward energy sources described as more affordable and reliable. The Department said this step aligns with President Donald J. Trump’s Energy Dominance Agenda and aims to reduce costs for American families while enhancing national energy security.
Under the terms of the deal, TotalEnergies will invest $928 million in U.S. energy infrastructure during 2026. This includes developing Train 1 to 4 of the Rio Grande LNG plant in Texas, as well as expanding conventional oil production in the Gulf of America and increasing shale gas output. In exchange for these investments, the U.S. government will reimburse TotalEnergies up to the amount paid for two previously acquired offshore wind leases: Lease No. OCS-A 0535 in Carolina Long Bay ($133 million) and Lease No. OCS-A 0538 in New York Bight ($795 million).
Secretary of the Interior Doug Burgum said, “This agreement is yet another win for President Trump’s commitment to affordable and reliable energy for all Americans.” Burgum added that offshore wind was "one of the most expensive, unreliable, environmentally disruptive, and subsidy-dependent schemes ever forced on American ratepayers and taxpayers." Attorney General Pamela Bondi also commented on the deal: “Today’s agreement prioritizes affordability for hardworking American consumers over the prior administration’s ideological, ineffective energy policies.”
Patrick Pouyanné, Chairman of TotalEnergies’ Board of Directors and Chief Executive Officer said: “TotalEnergies is pleased to sign this settlement agreements with the DOI and to support the Administration’s Energy Policy... We have decided to renounce offshore wind development in the United States... we will reinvest the refunded lease fees to finance construction of [the] Rio Grande LNG plant... These investments will contribute to supplying Europe with much-needed LNG from the U.S. and provide gas for U.S. data center development.”
According to officials involved in announcing this agreement, these actions are intended not only to lower monthly bills but also support secure baseload power generation now and into future years.
