TotalEnergies cancels two US offshore wind projects for $1B, shifting focus to gas and power amid political and market challenges.
French energy company TotalEnergies has agreed to cancel two US offshore wind projects in exchange for a US$1 billion payment from the Trump administration, shifting focus to gas and power facilities, reports London's S&P Global.
The deal covers the Carolina Long Bay and New York Bight projects, which were still in the pre-environmental review stage. TotalEnergies chairman and CEO Patrick Pouyanne stated that offshore wind development was not in the country's interest, and the company would reinvest refunded lease fees into gas production and export projects, including NextDecade Corp's Rio Grande LNG plant in Texas.
US offshore wind has faced setbacks since President Donald Trump banned new projects in January 2025. In December, the Bureau of Ocean Energy Management issued stop-work orders on five East Coast projects that were already permitted and partly built. The payout to TotalEnergies followed court rulings that allowed developers to resume work on those projects.
Sam Salustro of the industry group Oceantic Network mentioned that the cancelled projects were not advanced enough to affect logistics activity, adding that offshore wind remains a secure long-term power source despite political opposition. He described the cancellations as political theatre amid rising energy prices.
The pivot comes as US LNG export capacity, already the largest globally, is expected to nearly double in five years, according to the Energy Information Administration. Ports such as Vancouver USA have reported more wind cargo shifting to Canada, with facilities in Washington state capturing business linked to wind farms in Alberta, Saskatchewan, and British Columbia.
