Jurong Island, Singapore: Saudi Arabia plans to begin storing crude oil at Singapore’s Jurong Rock Caverns in the second half of 2027, in a move aimed at strengthening its oil supply chain across Southeast Asia and improving Singapore’s energy security.

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

Saudi Aramco Partners with Singapore Authorities

Under the proposed arrangement, Saudi Aramco will work with Singapore’s Energy Market Authority and JTC Corporation to establish a framework for storing Saudi crude oil at the underground facility on Jurong Island.

The parties exchanged a memorandum of understanding as the first step towards implementing the plan. Further negotiations are expected to be completed in the coming months.

Focus on Regional Energy Security

The initiative is designed to bring Saudi crude supplies closer to key Asian markets, improving the flexibility and resilience of the supply network.

The stored oil could also help Singapore meet its energy needs during unexpected supply disruptions, strengthening the city-state’s preparedness for global energy market volatility.

Storage Capacity and Costs Yet to Be Detailed

Jurong Rock Caverns is an underground liquid-hydrocarbon storage facility on Singapore’s Jurong Island. The facility has a total capacity of approximately nine million barrels of crude oil and condensate.

However, the volume of Saudi crude that will be stored under the proposed arrangement, along with the financial value of the deal, has not yet been disclosed.

The agreement marks a new phase of energy cooperation between Saudi Arabia and Singapore as both countries seek to strengthen regional energy supply security and reduce vulnerability to disruptions in global oil markets.