LA DEFENSE (dpa-AFX) - The U.S. Department of the Interior said it has reached an agreement with TotalEnergies SE (TTE.PA) under which the company decided not to pursue costly offshore wind leases. Instead it will redirect about $1 billion in capital from offshore wind leases to less costly oil, natural gas and LNG projects in the United States.
Accordingly, the U.S. government will reimburse TotalEnergies for previously acquired offshore wind leases, on a dollar-for-dollar basis, in exchange for the company investing in domestic fossil fuel and LNG developments.
TotalEnergies also committed not to pursue new offshore wind projects in the United States.
The company said it plans to invest about $928 million in 2026, including development of the Rio Grande LNG plant in Texas and expansion of upstream oil and gas and shale production.
The agreement includes the termination of offshore wind leases in the Carolina Long Bay and New York Bight areas, for which TotalEnergies had paid a combined $928 million.
'Americans will benefit from this significant investment in our energy industry, which will also enhance our national security and grid reliability,' said Attorney General Pamela Bondi.
'TotalEnergies is pleased to sign this settlement agreements with the DOI and to support the Administration's Energy Policy. Considering that the development of offshore wind projects is not in the country's interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees,' said Patrick Pouyanné, Chairman of the Board of Directors and Chief Executive Officer of TotalEnergies.
(Amended: Removed the incorrect mention of 'Tuesday' from the intro)
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