Saudi Arabia intends to store crude oil in Singapore starting in the second half of 2027. The arrangement aims to strengthen the supply chain across Southeast Asia and support the energy security of the city-state.
Singapore authorities exchanged a memorandum of understanding with Saudi Aramco during the Singapore International Energy Week. Representatives from Singapore’s Energy Market Authority, JTC Corp., and the state-backed oil giant swapped the documents.
The agreement places Saudi crude inside the Jurong Rock Caverns on Jurong Island. A joint government announcement stated the strategic reserve is designed to support Singapore’s energy needs if supply disruptions occur.
This initiative comes after severe energy supply disruptions caused by the conflict involving the United States, Israel, and Iran. The fighting has affected oil shipments passing through the Strait of Hormuz, forcing Asian nations to draw down their existing inventories.
Before the war, Asia imported approximately two-thirds of its oil supplies from the Middle East, according to Reuters data. Singapore’s Minister for Energy, Trade and Industry, Tan See Leng, spoke at the energy week event regarding the timeline.
"We aim to conclude negotiations in a few months’ time," Tan told the gathering.
Neither government disclosed the volume of crude oil slated for storage nor the financial terms of the arrangement. Officials from the Singaporean Ministry of Energy, Trade and Industry and the Saudi Ministry of Energy stated they would coordinate implementation with relevant entities.
The Jurong Rock Caverns facility sits 150 metres underground and possesses a total storage capacity of up to 1.47 million cubic metres of liquid hydrocarbons, based on figures from JTC. The joint announcement did not specify how much of this capacity will be allocated specifically to the Saudi arrangement.
The proposal mirrors an existing partnership between Saudi Arabia and Japan. Aramco and the Japan Organization for Metals and Energy Security renewed an agreement in November covering roughly 8.2 million barrels of crude oil storage in Okinawa for a three-year term.
Japan receives preferential access to that stored oil during emergencies. Aramco uses the Okinawa site as a strategic distribution hub for Asian customers. That specific partnership has been active since 2010.
Singapore has simultaneously pursued broader energy cooperation across the Gulf region. Tan noted that Singapore renewed a memorandum of understanding on liquefied natural gas and low-carbon technology cooperation with QatarEnergy, alongside signing a taskforce agreement with the Abu Dhabi National Oil Co.
