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By Stephanie Kelly and Jarrett Renshaw

HOUSTON, March 23 (Reuters) - The United States and

French energy major TotalEnergies said on Monday they

would redirect nearly $1 billion from offshore wind leases to

U.S. oil and natural gas production.

The deal is the latest blow to the U.S. offshore wind

industry, which has faced repeated disruptions to

multi-billion-dollar projects under U.S. President Donald Trump.

Trump has said he finds wind turbines ugly, costly and

inefficient, and his administration has moved to increase

domestic fossil fuel production.

The U.S. will reimburse Total around $1 billion the company

paid in lease purchases for offshore wind, and TotalEnergies has

pledged not to develop any new offshore wind projects in the

country, a U.S. Department of the Interior statement said.

Total will invest $928 million in 2026 in the development of

four trains at the Rio Grande LNG plant in Texas, and the

development of upstream conventional oil in the U.S. Gulf and

shale gas production, the statement said.

Following those investments, the U.S. will terminate leases

in the Carolina Long Bay area and the New York Bight area, both

executed in 2022, and reimburse Total.

Total CEO Patrick Pouyanne said offshore wind was not the

most affordable way to produce electricity in the U.S.

Pouyanne and U.S. Secretary of the Interior Doug Burgum

announced the agreement at the CERAWeek energy conference in

Houston.