Saudi Arabia to store oil in Singapore to bolster Asia supply security

Saudi Arabia plans to begin storing crude at Singapore’s Jurong Rock Caverns in the second half of 2027, Business Recorder reported. Energy ministers from the two countries said the arrangement is intended to reinforce supply security in Asia after disruptions to shipments through the Strait of Hormuz raised concerns about regional and global inventories.

Saudi Aramco is expected to sign a memorandum of understanding with Singapore’s Energy Market Authority and JTC Corp, with negotiations targeted for completion within a few months. The underground facility can hold up to 1.47 million cubic metres, equivalent to roughly 9 million barrels of liquid hydrocarbons. Aramco already stores oil in Japan and South Korea, while other Asian countries generally have smaller buffers against supply shocks.