Trump Administration Reimburses TotalEnergies $928M to Scrap Offshore Wind Leases, Pivot to LNG

The Trump administration has struck a $928 million deal with TotalEnergies to abandon two major U.S. offshore wind leases and redirect the capital into LNG and oil and gas development, marking a decisive shift in strategy after federal courts blocked efforts to halt projects on national security grounds.

Under agreements announced Monday, TotalEnergies will relinquish its Carolina Long Bay lease (OCS-A 0545) and New York Bight lease (OCS-A 0538)—both awarded in 2022—and exit offshore wind development in the United States entirely.

In return, the company will recover the value of its lease payments—approximately $928 million—and reinvest an equivalent amount into U.S. energy projects, including the Rio Grande LNG export facility in Texas and upstream oil and gas development.

Strategic Pivot After Legal Defeats

The agreement follows a string of federal court rulings that dismantled the administration’s attempt to suspend offshore wind construction along the East Coast.

Judges in multiple jurisdictions cleared five major projects—including Sunrise Wind, Vineyard Wind, Empire Wind, Coastal Virginia Offshore Wind, and Revolution Wind—to resume construction, finding the government’s national security justification likely unlawful or overly broad.

Those rulings effectively removed the administration’s ability to stop projects already in motion.

The TotalEnergies deal signals a new approach: financially unwinding leases rather than blocking development outright.

From Offshore Wind to LNG Expansion

TotalEnergies said its analysis found U.S. offshore wind projects to be costly and less competitive than alternative energy sources.

“We have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees,” said CEO Patrick Pouyanné.

The company will redirect the funds into LNG and upstream investments, including the 29 million ton-per-year Rio Grande LNG project, positioning the U.S. to expand exports to global markets, particularly Europe.

TotalEnergies is also deepening its LNG footprint with a 20-year agreement for 2 million tons per year from Alaska LNG, further strengthening its role in the U.S. export chain.

Lease Details Highlight Discrepancies

The agreement covers two high-profile leases awarded during the Biden administration’s offshore wind push: OCS-A 0545 (Carolina Long Bay), originally awarded with a $160 million winning bid, and OCS-A 0538 (New York Bight), awarded with a $795 million bid.

Together, they total roughly $928 million.

However, the Interior Department said it would reimburse $133.3 million for the Carolina lease—below the original bid. The agency also initially misstated the Carolina lease number as OCS-A 0535, with TotalEnergies confirming the correct designation is OCS-A 0545.

The deal represents one of the clearest financial reversals of U.S. offshore wind expansion to date—and a major pivot toward LNG.

It also raises a broader question: whether this agreement becomes a template for additional offshore wind exits as the administration reshapes U.S. energy policy.

With courts allowing construction to resume but policy shifting in another direction, the battle over offshore wind is now moving from the courtroom to the balance sheet.

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