Saudi Arabia to store crude oil in Singapore in mid-2027

SINGAPORE — Saudi Arabia will soon store crude oil in Singapore’s Jurong Rock Caverns through a strategic partnership that aims to strengthen energy security as well as Saudi’s supply chain in the region, Singapore’s Minister for Energy, Trade and Industry Dr. Tan See Leng said. 

The announcement was made during the first day of the Singapore International Energy Week (SIEW).

“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. 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.

The Jurong Rock Caverns is an underground facility for storing liquid hydrocarbons in Southeast Asia.

Saudi Arabia’s Minister of Energy and Minister of Industry and Mineral Resources HRH Prince Abdul Aziz Bin Salaman Al Saud highlighted Saudi Arabia’s commitment to supply energy reliably to markets globally, despite the ongoing geopolitical tensions that threaten to disrupt supply chains. 

“Bringing supply close to key Asian markets will strengthen the flexibility of our supply network and support Singapore’s security of supply and preparedness… This effort is also reflective in wider regional efforts…to strengthen energy and supply chain resilience,” Al Saud said in a video message.

Prices in fuel-importing countries, including the Philippines, have skyrocketed once again, roughly four years after the 2022 energy crisis. 

“Why do these crises matter? Because energy is an existential priority. Our economic growth and the quality of life depends on continued access to reliable and affordable energy,” Tan said.

Saudi Aramco is expected to sign a Memorandum of Understanding with the Energy Market Authority of Singapore, Tan said.