TotalEnergies Recovers $928 Million by Abandoning US Offshore Wind Concessions
TotalEnergies and the Trump administration have signed a deal allowing the group to recoup $928 million invested in two offshore wind concessions, to be redirected toward LNG and oil.
| Countries | États-Unis, Norvège, Ukraine, Russie |
|---|---|
| Companies | TotalEnergies, Orsted, Equinor |
| Sector | Gaz, Gaz naturel, GNL, Énergie Éolienne |
| Theme | Investissements & Transactions, Transfert d'Actifs Énergétiques |
TotalEnergies and the US government signed on Monday a reimbursement agreement worth nearly one billion dollars, compensating the French group's abandonment of its offshore wind concessions in the United States. The signing took place on the sidelines of CERAWeek in Houston, Texas, between Interior Secretary Doug Burgum and CEO Patrick Pouyanné, who described the deal as a "win-win." This development follows the group's decision to exit US offshore wind concessions to reinvest in LNG. Every dollar recovered will be reinvested in liquefied natural gas (LNG) projects and electricity production, according to TotalEnergies.
$928 Million in Royalties Reimbursed
TotalEnergies had acquired in 2022, for $928 million in royalties, two offshore wind concessions — one off the coast of New York and another off North Carolina. The group suspended them in late 2024, citing the Trump administration's hostility toward offshore wind, a sector that globally reached 100 GW of installed capacity. Rather than pursuing legal action, as rivals Ørsted and Equinor chose to do, Patrick Pouyanné opted for direct negotiation with Washington. "With this agreement, we allow this great company to redirect those dollars paid to the Treasury toward reliable, secure, and affordable natural gas and oil production," said Doug Burgum. "This administration believes in energy realities, not climate fantasies," he added.
The Trump administration had attempted to block the five most advanced offshore wind projects in the country on national security grounds, without success so far, as federal courts allowed their continuation. The Revolution Wind project off Rhode Island has been completed and recently began supplying electricity to the grid. Construction continues on Sunrise Wind and Empire Wind off New York, Coastal Virginia Offshore Wind and Vineyard Wind off Massachusetts. Patrick Pouyanné argued that, in the US context, "offshore wind is not the most affordable way to produce electricity."
Rio Grande LNG and the European Export Strategy
TotalEnergies intends to accelerate in particular the construction of the Rio Grande LNG plant, with a capacity of 29 million tonnes, according to the group. The company positions itself as the leading US LNG exporter, with 19 million tonnes exported in 2025, representing 18% of national production. Of that volume, 14 million tonnes supplied the European market, where pipeline gas deliveries from Russia have significantly declined since the beginning of the war in Ukraine in 2022. TotalEnergies has also signed an agreement to export 2 million tonnes per year from the future Alaska LNG project over a 20-year period.
In 2025, the United States accounted for 26% of the European Union's (EU) total gas imports — LNG and pipeline combined — trailing only Norway. Patrick Pouyanné stressed in a statement that these investments will help "bring Europe the LNG it needs," while also "supplying gas" to power plants meeting the electricity demands of data centers. TotalEnergies also claims the title of fifth-largest renewable electricity producer in the United States, with 10 GW of installed capacity — solar, onshore wind, and batteries — and 20 GW under development.
