After extensive research in 2007/2008 a huge opportunity within the South African Compressed Natural Gas (CNG) sector was discovered. It was evident that, based on then-current international market trends, South Africa was severely behind the global curve to find a cleaner, more environmentally-friendly source of fuel. The push by international governments and corporations for alternate and renewable energy sources was significant, leading the National Energy Regulator of South Africa (NERSA) and other governmental bodies to create a platform to open up competition and issue gas trading licences to operators. This was imperative for the future development of the country to access untapped resources.
Due to underdeveloped natural gas resources within the southern African market and the uncompetitive nature of this energy resource, the market had stalled and become stagnant. CNG Holdings identified these shortfalls within the compressed natural gas market and moved to open the market for further development.