TotalEnergies SE (NYSE: TTE) signed settlement agreements with the U.S. Department of the Interior to relinquish two offshore wind leases awarded in 2022, effectively ending its offshore wind development in the United States.

The French energy company will surrender its Carolina Long Bay lease and New York Bight lease. Under the settlement terms, TotalEnergies will recover the lease fees paid and invest an equivalent amount in U.S. gas and power production and exports.

The company stated that studies showed U.S. offshore wind developments are costly compared to European projects and could negatively impact power affordability for consumers. TotalEnergies cited the availability of other technologies to meet growing electricity demand in a more cost-effective manner.

"TotalEnergies is pleased to sign these settlement agreements with the DOI and to support the Administration's Energy Policy," said Patrick Pouyanné, chairman and chief executive officer. "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."

The company will redirect the refunded lease fees toward financing construction of the 29 Mt Rio Grande LNG plant and expanding oil and gas activities. These investments aim to support U.S. gas production and exports, including supplies to Europe and gas for data center development.

TotalEnergies also signed a letter of intent with Glenfarne for long-term offtake of 2 million tons per year of liquefied natural gas from the Alaska LNG project over 20 years, subject to final investment decision.

The company has invested nearly $12 billion in the U.S. since 2022 across oil, LNG and electricity sectors. TotalEnergies exported 19 million tons of U.S. LNG in 2025 and operates 10 GW of installed power capacity in the country.