A federal court on Tuesday ordered FERC to review its approvals of two planned liquefied natural gas (LNG) export projects in South Texas, saying the agency had not adequately explained its approach in evaluating the potential impacts on climate change and environmental justice (EJ) communities.

The decision handed down from the U.S. Court of Appeals for the District of Columbia (DC) Circuit remands the Federal Energy Regulatory Commission’s authorizations, clearing the facilities for construction and operation, but it does not vacate them. That leaves the authorizations in place, allowing the developers to continue work on the facilities while the review proceeds.

“We find it reasonably likely that on remand, the Commission can redress its failure of explanation with regard...