Saudi Arabia plans to begin storing crude oil in Singapore’s underground Jurong Rock Caverns in the second half of 2027, in a strategic move to strengthen energy security and improve the resilience of oil supplies across Southeast Asia. Announced on 26 October 2026 by the countries’ energy ministers at Singapore International Energy Week, the proposed arrangement will bring Saudi crude closer to major Asian markets, providing greater flexibility in responding to supply disruptions. According to Reuters, Singapore’s Minister for Energy, Trade and Industry, Tan See Leng, said Saudi Arabia and Singapore had agreed on the joint intention to establish the arrangement, with Saudi Aramco, Singapore’s Energy Market Authority and JTC Corporation taking steps towards its implementation through a memorandum of understanding. Negotiations are expected to conclude within the coming months.
The planned storage location is significant to the region’s energy infrastructure. Situated approximately 150 metres beneath Jurong Island, the Jurong Rock Caverns can accommodate up to 1.47 million cubic metres of liquid hydrocarbons, equivalent to roughly nine million barrels of crude oil and condensate. While the precise volume Saudi Arabia intends to store has not been disclosed, the arrangement is designed to improve the reliability of supplies while supporting Singapore’s preparedness for potential shortages. Saudi Energy Minister Prince Abdulaziz bin Salman said bringing crude closer to key Asian markets would strengthen supply network flexibility. The initiative also builds on Saudi Aramco’s existing overseas storage arrangements in Japan and South Korea, where host governments have priority access to stored oil during unexpected supply emergencies.
The agreement comes amid heightened concern over Asia’s dependence on Middle Eastern energy supplies following severe disruptions to oil shipments through the Strait of Hormuz. Before the conflict involving the United States, Israel and Iran, Asia sourced approximately two-thirds of its oil imports from the Middle East, leaving regional economies exposed to geopolitical shocks affecting critical shipping routes. For Saudi Arabia, storing crude in Singapore offers a way to position supplies closer to customers and reinforce distribution resilience. For Singapore, a major global oil trading and refining hub that relies heavily on imported energy, the arrangement strengthens its strategic role in regional energy security. The initiative reflects a wider shift towards diversified storage locations and more resilient supply networks as governments and energy producers seek to manage uncertainty in global oil markets.
