Natural gas can be directly used for heating of flats by gas distribution system. Indirectly, heating power plant can disburse natural gas and deliver hot water or steam for heating of flats. Decision of optimal way for gas heating usage is done based on spatial disposal of building, number and size of buildings in settlement, etc. Optimal solution, between gas distribution and district heating system (local or district heating by natural gas), can be done according to methodology (model approach) shown in this paper. According to variety of Serbian settlements (in density, size and layout of buildings) model which has ability to represent their different characteristics is formed. This model could be simple and useful tool for initial decision about energy supply system.