- Relinquished two 2022 offshore wind leases: Carolina Long Bay (OCS-A 0545) and New York Bight (OCS-A 0538).
- Settlement returns paid lease fees and requires reinvestment of an equal amount into U.S. gas and power production and exports.
- Reinvestment will help finance the 29 Mt Rio Grande LNG plant and additional oil and gas development.
- Signed an LOI with Glenfarne for a 2 Mtpa LNG offtake over 20 years, subject to final investment decision.
Settlement with DOI
TotalEnergies signed settlement agreements with the U.S. Department of the Interior to relinquish two offshore wind leases awarded in 2022: Carolina Long Bay (OCS-A 0545) and New York Bight (OCS-A 0538); it will no longer develop offshore wind projects in the United States.
Financial terms
Under the settlement TotalEnergies will recover the lease fees it paid and reinvest an equal amount into U.S. gas and power production and exports.
Rationale
Company studies concluded that U.S. offshore wind is costlier than in Europe and could negatively affect power affordability for U.S. consumers, and that other technologies can meet growing electricity demand more affordably.
Planned reinvestments and agreements
The refunded lease fees will help finance the 29 Mt Rio Grande LNG plant and further oil and gas development to support U.S. gas production and exports; TotalEnergies also signed a Letter of Intent with Glenfarne for a 2 Mtpa LNG offtake over 20 years, subject to final investment decision.
