The Board of Directors of Southern Automobiles Ltd. conceived the idea for set-up of CNG Conversion Center and CNG Re-fueling Station in April, 2000. Accordingly the company Southern Automobiles Ltd. was registered with the registrar of Joint Stock Companies, Bangladesh on 1st February 2001. After In-corporation with Joint Stock Company, Southern started the CNG business on 12 November, 2001 as per the approved by the Energy and Mineral Resource Division, Ministry of Power Energy and Mineral Resources, Govt. of the People’s Republic of Bangladesh, vide letter No. EN&MR (op-1) CNG/BPC-12/2001 dated 08 July 2001.

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 Natural Gas the indigenous mineral resources plays a significant role for development of Socio-economic condition for the people of Bangladesh. Large quantities of fuel is imported from abroad for the transport sector in the country. As a result a huge amount of foreign currencies are spent. In1982 Petro Bangla on behalf of the Govt. of the People’s Republic of Bangladesh under took a pilot project for the use of CNG (Compressed Natural Gas) as alternative fuel in transport sector. About 29 Vehicles (16 Petrol vehicles and 13 Diesel Bus/Truck) were converted into CNG System under the pilot project. On the basis of successful out-come of the project Govt. started commercial use of CNG in Bangladesh.