TotalEnergies has signed settlement agreements with the U.S. Department of the Interior to relinquish its Carolina Long Bay lease (OCS-A 0545) and its New York Bight lease (OCS-A 0538), both awarded in 2022, together with its partners. Following the agreements, the company will no longer develop offshore wind projects in the United States.
Under the settlement terms, TotalEnergies will recover the lease fees it paid and will invest an equal amount in the development of U.S. Gas & Power production and exports.
The company says its studies on the two leases showed that offshore wind developments in the United States, unlike those in Europe, are costly and could negatively affect power affordability for U.S. consumers. It also says other technologies are available to meet rising electricity demand in the U.S. at a more affordable cost, removing the need to allocate capital to this technology in the country.
Patrick Pouyanné, Chairman of the Board of Directors and Chief Executive Officer of TotalEnergies, says the agreements support the Administration’s energy policy and provide for reimbursement of lease fees in exchange for the company’s withdrawal from U.S. offshore wind. He adds that the refunded amount will be reinvested to finance the construction of the 29 Mt Rio Grande LNG plant and the development of the company’s oil and gas activities.
Separately, TotalEnergies recently signed a letter of intent with Glenfarne, lead developer of the Alaska LNG project, for the long-term offtake of 2 Mtpa of LNG over 20 years, subject to the project’s final investment decision.
