Demand favours low cost transportation from Marcellus

Low natural gas prices mean the most viable plays remain those close to market

A mild summer, resurgent coal consumption and tumbling natural gas liquids (NGLs) prices have brought shale-gas producers back down to earth once again. Gas-focused players have been stung by sliding prices for gas and NGLs, while asset prices have slumped as companies focus on cutting costs and reducing capital expenditure in less profitable plays. With large-scale exports in the form of liquefied natural gas (LNG) still years away, costs are coming under greater scrutiny.   The low price for gas means costly long-haul shipping chews up too much value, so companies are slashing activity in the southern states. Liquids-rich plays in the south, particularly those that yield oil and condensate