Saudi Arabia plans crude oil storage in Singapore from 2027

Saudi Arabia and Singapore plan to store Saudi crude at Jurong Rock Caverns from the second half of 2027. The arrangement aims to strengthen Southeast Asian supply resilience and Singapore's energy security.

In Short

• Saudi Arabia to store crude oil in Singapore's Jurong Rock Caverns from mid-2027
• Plan supports Singapore's energy security amid possible supply disruptions
• Saudi Aramco to sign MoU with Singapore's Energy Market Authority soon

Saudi Arabia plans to store crude oil in Singapore’s Jurong Rock Caverns from the second half of 2027, in a move aimed at strengthening its oil supply chain in Southeast Asia and supporting Singapore’s energy security, reported news agency Reuters.

Singapore’s Minister for Energy, Trade and Industry Tan See Leng announced the joint intention at the Singapore International Energy Week conference on Monday, October 26.

“Saudi Arabia and Singapore are announcing our joint intent to establish an arrangement for Saudi crude oil to be stored at the Jurong Rock Caverns from the second half of 2027,” Tan said as per the report.

The arrangement is expected to make Saudi Arabia’s crude oil supply chain in Southeast Asia more resilient and help Singapore manage potential supply disruptions.

“This arrangement enhances the resilience of the Saudi crude oil supply chain in Southeast Asia, as well as contributes to Singapore's energy security and resilience in the event of supply disruptions,” Tan said.

AGREEMENT WITH SAUDI ARAMCO

Saudi Aramco is expected to sign a memorandum of understanding with Singapore’s Energy Market Authority and JTC Corporation on Monday, Tan said.

Negotiations on the arrangement are expected to be concluded within a few months, he added.

The planned storage arrangement will use Singapore’s Jurong Rock Caverns, an underground facility, to store Saudi crude oil. The report did not specify the volume of crude oil to be stored or the financial value of the arrangement.

The plan is intended to strengthen the reliability of Saudi crude oil supplies to Southeast Asia while adding to Singapore’s ability to manage potential disruptions to energy supplies.

- Ends