The U.S. Department of Energy (DOE) will not reconsider its decision denying an Energy Transfer LP (ET) affiliate’s request to again extend the deadline to begin exports from the proposed Lake Charles LNG facility in Louisiana. 

In a 48-page order, DOE denied a request for rehearing filed in May, in which ET claimed the agency’s decision was arbitrary and capricious. The proceeding has previewed the legal arguments both sides could make in a court challenge, which could have broader implications for other U.S. liquefied natural gas projects attempting to advance. It’s not certain, though, if ET will challenge DOE’s latest decision.

Spokesperson Cassidy Lamb said ET was disappointed with DOE’s order, but it plans to continue developing the project given “significant...