Saudi Arabia to Store Crude Oil in Singapore Starting from 2027

Saudi Arabia’s and Singapore’s energy ministries announced their intention to arrange for the storage of Saudi crude oil in Singapore’s Jurong rock caverns, with storage operations set to begin in the second half of 2027, in a move aimed at enhancing the reliability of oil supplies to Southeast Asia and Singapore’s energy security.

The Saudi Ministry of Energy said in a statement on Monday that the Singapore Energy Market Authority and JTC Corporation exchanged drafts of a memorandum of understanding with Saudi Aramco during the Singapore International Energy Week, marking the first step toward implementing the proposed arrangements.

The ministry added that the Saudi and Singaporean sides would work to finalize the necessary arrangements and coordinate with relevant authorities to implement them, noting that the stored crude would help meet Singapore’s energy needs in the event of supply disruptions.

Bloomberg reported earlier on Monday that Singapore is preparing to store Saudi crude in the Jurong rock caverns starting in the second half of next year, as part of the kingdom’s efforts to bolster the resilience of its oil supplies amid disruptions stemming from the war between the United States and Iran.

The agency quoted Singapore’s Minister for Energy, Trade and Industry, Tan See Leng, as saying at the Singapore International Energy Week conference that storing Saudi crude in Jurong would enhance the resilience of supply chains to Southeast Asia against disruptions, while also supporting Singapore’s energy security.

The Jurong rock caverns are located underground within a petrochemical and refining complex in southern Singapore, with a storage capacity of approximately 1.47 million cubic meters of liquid hydrocarbons, including crude oil and condensates, equivalent to about 9 million barrels, according to the website of JTC Corporation, the government agency that owns the facility.

This capacity does not necessarily reflect the volume that Aramco will store under the proposed arrangements, as the statement did not specify the amount of Saudi crude targeted for storage. Earlier in October, Amin Nasser, CEO of Saudi Aramco, revealed that the kingdom was holding talks with foreign governments to secure storage facilities for the company abroad.

These moves follow disruptions affecting the Strait of Hormuz and the Red Sea, two key shipping routes for Saudi oil exports, as well as attacks targeting a major pipeline and other energy facilities in the kingdom.

Saudi Minister of Energy and Minister of Industry and Mineral Resources, Prince Abdulaziz bin Salman, said in a recorded speech shown at the conference in Singapore that bringing supplies closer to major Asian markets would enhance the resilience of Saudi supply networks and support energy security and Singapore’s preparedness to handle any disruptions, according to Bloomberg.

He added that there is potential to expand cooperation between the two countries, while the Saudi Ministry of Energy confirmed that the proposed arrangements represent a new phase of partnership in the energy sector and strengthen Singapore’s role as a key regional energy hub in Southeast Asia.