The transport divisions of gas utility E.ON Ruhrgas and distributor Bayerngas will form a joint delivery system in October 2008, in a bid to simplify shipping procedures, according to Reuters, which cited a joint statement by the two firms.

Reuters reported that Bayernets and E.ON Gastransport will handle half the H-gas type from Germany’s North Sea coast to the Alps. This will reportedly be a step towards more wholesale gas trading in the country with the reduction of gas market zones.

Reuters noted that the German energy regulator Bundesnetzagentur has been active in encouraging the gas industry to reduce the number of market zones to boost competition and ease the way for customers to switch utilities in a less expensive manner.

The new joint delivery system will reportedly bring down the number of gas market zones to 11 from 753 in 2006, according to Reuters.