Saudi Arabia to Store Crude in Singapore's Jurong Rock Caverns from 2027

Saudi Arabia will begin storing crude oil at Singapore's Jurong Rock Caverns from the second half of 2027, energy ministers from both countries said on Monday. The arrangement is intended to bolster supply resilience for Southeast Asian markets after recent disruptions to oil flows through the Strait of Hormuz.

"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," Singapore's minister for energy, trade and industry Tan See Leng said at the Singapore International Energy Week conference. He added that the storage will enhance the resilience of the Saudi supply chain in the region and contribute to Singapore's energy security.

Saudi Energy Minister Prince Abdulaziz bin Salman Al-Saud said the move would bring supply closer to key Asian markets, strengthening the flexibility of the supply network and supporting Singapore's preparedness for disruptions.

The underground caverns, located about 150 metres below ground on Jurong Island, can hold roughly 1.47 million cubic metres – about 9 million barrels – of liquid hydrocarbons. Saudi Aramco will sign a memorandum of understanding with Singapore's Energy Market Authority and JTC Corp, with negotiations expected to conclude within a few months.

Aramco already stores crude in Japan and South Korea, where local governments have priority access in case of shortages. The new Singapore facility adds to regional efforts, including Japan's POWERR Asia initiative, to expand crude reserves across Asia.