Saudi Arabia to store crude oil in Singapore from H2 2027

Saudi Arabia’s Ministry of Energy and Singapore’s Ministry of Energy, Trade, and Industry announced plans to make arrangements for storing Saudi crude oil in Singapore.

As a first step toward implementing the arrangements, memoranda of understanding were exchanged today, Oct. 26, between Singapore’s Energy Market Authority and JTC Corporation and Saudi Aramco, according to a statement from the Ministry of Energy.

Both ministries will work closely to finalize the necessary arrangements and coordinate with relevant entities on their implementation.

Under the proposed arrangements, Saudi crude oil will be stored in the Jurong Rock Caverns on Jurong Island in Singapore, with storage operations expected to begin in the second half of 2027.

The arrangements are expected to strengthen the resilience and reliability of Saudi crude oil supply chains to Southeast Asia. The stored crude will also help meet Singapore’s energy needs in the event of supply disruptions, enhancing the security and reliability of its energy supplies.

The ministry said the proposed arrangements mark a new phase of energy cooperation between Saudi Arabia and Singapore, reflect the two countries’ shared commitment to strengthening energy security in Southeast Asia, and underscore Singapore’s role as a major regional energy hub.