Saudi Arabia Plans Singapore Crude Storage From 2027

Saudi Arabia and Singapore announced on Monday a plan for Saudi crude oil to be stored at the Jurong Rock Caverns on Jurong Island starting in the second half of 2027. Singapore energy minister Tan See Leng and Saudi energy minister Prince Abdulaziz bin Salman Al-Saud made the joint announcement at Singapore International Energy Week. Tan said the countries are announcing joint intent to establish the arrangement. Copies of a memorandum of understanding were exchanged between Singapore's Energy Market Authority and JTC Corporation and Saudi Aramco, with negotiations expected to conclude within a few months. Tan warned about continued disruption to energy flows through the Strait of Hormuz and potential escalation after Houthi attacks on Saudi infrastructure following the US-Iran conflict that broke out in February. "Energy is an existential priority," he said. "Our economic growth and quality of life depend on continued access to reliable and affordable energy." Before the war, nearly two-thirds of Asia's imported oil came from the Middle East, per Reuters. Speaking by video, Prince Abdulaziz said bringing supply closer to key Asian markets would strengthen supply-network flexibility and support Singapore's security of supply and preparedness. The caverns lie 150 metres underground and hold up to 1.47 million cubic metres of liquid hydrocarbons. Saudi Aramco already stores crude in Japan and South Korea.