Saudi Arabia to Store Crude Oil in Singapore's Jurong Rock Caverns Starting 2027
Saudi Arabia and Singapore have agreed to store up to 9 million barrels of Saudi crude in underground caverns in Singapore beginning in the second half of 2027, aiming to bolster supply resilience for Asian markets.
Saudi Arabia has reached an agreement with the Singaporean government to store crude oil in the Jurong Rock Caverns, an underground facility at a petrochemical complex in southern Singapore. Deliveries are scheduled to start in the second half of 2027, with the caverns capable of holding about 1.47 million cubic metres, or roughly 9 million barrels, of crude, condensates and other liquids.
The move follows recent attacks on Saudi oil infrastructure, which have disrupted exports and led Saudi Aramco to use ship-to-ship transfers in the Gulf of Oman and route tankers through the Suez Canal.
"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," said Tan See Leng, Singapore’s energy minister.
"Bringing supply closer to the key Asian market would strengthen the flexibility of our supply network and support Singapore’s security of supply and preparedness," said Saudi energy minister Prince Abdulaziz bin Salman.
The partnership is part of Saudi Aramco’s broader search for additional overseas storage capacity as it seeks to mitigate the impact of regional disruptions on its export flows to Asia, a major market for Middle Eastern oil.