^{Photo: CNN}

The White House has reached a $1 billion settlement with TotalEnergies, paying the French energy giant to abandon its planned East Coast offshore wind projects. Under the agreement, TotalEnergies will redirect the funds — equivalent to the value of its renounced wind leases — toward expanding oil, natural gas, and liquefied natural gas (LNG) production in the United States.

The Department of the Interior (DOI) described the arrangement as “a landmark agreement” designed to prioritize affordable and reliable energy for American consumers. TotalEnergies will shelve wind developments in New York and the Carolinas and invest instead in four LNG trains at the Rio Grande facility in Texas, alongside upstream conventional oil projects in the Gulf of Mexico and U.S. shale gas production. The U.S. will reimburse the company dollar-for-dollar for lease costs paid for the wind projects.

Patrick Pouyanné, TotalEnergies’ chairman and CEO, said the company was “pleased to sign the settlement agreement and to support the Administration’s Energy Policy.” He emphasized that the agreement allows the group to focus on “efficient use of capital to support U.S. gas production and export,” noting that LNG from the U.S. will be critical for both European markets and domestic industries such as data centers.

The deal comes as President Donald Trump has continued to criticize offshore wind developments as expensive, unreliable, and subsidy-dependent. Secretary of the Interior Doug Burgum praised TotalEnergies’ commitment, describing the move as a win for affordable and dependable energy in the U.S. “Offshore wind is one of the most costly and environmentally disruptive schemes ever imposed on American ratepayers,” he said, highlighting the national security and economic rationale for shifting investment toward natural gas and LNG production.

The announcement coincides with global energy market disruptions caused by the ongoing conflict in Iran, further increasing the strategic importance of U.S. LNG exports. By redirecting $1 billion from wind to fossil fuel projects, TotalEnergies and the U.S. government aim to strengthen domestic energy security while ensuring that Europe receives much-needed LNG supplies during a period of heightened geopolitical risk.

The deal marks a major pivot in U.S. energy policy, signaling a clear preference for fossil fuel infrastructure expansion over offshore renewable projects, and underscores the administration’s intent to leverage private investment for immediate energy reliability.