A federal appeals court panel has struck down the Federal Energy Regulatory Commission’s approval of a natural gas pipeline that runs through parts of Missouri and Illinois.

A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit ruled Tuesday that the commission “failed to adequately balance public benefits and adverse impacts” in approving the Spire STL Pipeline.

The court also says the commission failed to prove that the line was really needed. A statement from St. Louis-based Spire calls the ruling disappointing.

The company is considering its next move. The statement says the ruling jeopardizes reliable energy access to 650,000 homes and businesses in the St. Louis area.