KIEV, Oct. 31 - Naftogaz Ukrayiny, the state oil and gas company, plans to dramatically expand this year on the market of heat energy generation and distribution to residential sector, the company said Monday.

Naftogaz, through its heat energy arm Gaz-Teplo, will deliver up to 4 billion cubic meters of natural gas to regional heat generating companies, up from 2.2bcm delivered in 2004, Naftogaz said.