Saudi Arabia plans to store crude oil in Singapore from the second half of 2027, with the oil held in the Jurong Rock Caverns beneath Jurong Island.
Saudi Arabia’s Ministry of Energy announced on Monday a joint intent to set up the crude oil arrangement, CNA reported. Storage operations are expected to start in the second half of 2027.
Singapore’s Energy Market Authority (EMA) and JTC Corporation exchanged a memorandum of understanding with Saudi Aramco as a first step toward the arrangement.
The stored crude will support Singapore’s energy needs if supplies are disrupted. It would also “enhance the resilience of Saudi crude oil supply chain in Southeast Asia,” according to the announcement.
The Jurong Rock Caverns sit 150 meters below Jurong Island and have a total storage capacity of 1.47 million cubic meters, The Straits Times reported.
Tan See Leng, Singapore’s Minister for Energy, Trade and Industry (Energy and Industry), referred to the Saudi agreement in his opening lecture at Singapore International Energy Week on Monday.
He said Singapore could not insulate itself from shocks such as the crisis in the Strait of Hormuz. “This trend of resource nationalism is particularly concerning, especially if it undermines established contractual agreements,” he said.
Indonesia began cutting gas supplies to Singapore over the weekend. Tan said the reduction amounts to less than 2% of Singapore’s total daily gas demand.
The deal follows comments by Aramco President and Chief Executive Officer Amin Nasser on October 22 that the company is seeking access to strategic oil storage held by foreign governments and aims to double its storage capacity abroad, particularly in Asia.
Aramco already holds commercial oil storage in South Korea, Japan, the Netherlands and at Sidi Kerir in Egypt.
