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US to pay nearly $1bn to TotalEnergies to cancel east coast offshore wind leases

Mar 23rd 2026 ยท United States

The Interior Department will reimburse TotalEnergies $928 million to drop two east coast offshore wind leases, with the company agreeing to invest in US LNG and fossil fuel projects instead.

  • Department of the Interior will reimburse TotalEnergies $928 million for two offshore leases purchased under the Biden administration.
  • TotalEnergies agreed to relinquish leases off New York and North Carolina and pledged not to develop new offshore wind projects in the US.
  • As part of the agreement, TotalEnergies will invest about $1 billion in Rio Grande LNG trains in Texas and in US Gulf oil and shale gas development.
  • The announcement was made by TotalEnergies CEO Patrick Pouyanne and Interior Secretary Doug Burgum at CERAWeek in Houston.
  • The deal comes amid a global fuel supply disruption tied to US-Israeli strikes on Iran and rising fossil fuel prices.
  • Despite administration efforts to halt projects, some East Coast wind farms have proceeded, with Vineyard Wind completed and Revolution Wind already delivering power to New England.