Saudi Arabia and Singapore to Store Crude in Jurong Caverns

Saudi Arabia and Singapore announced a joint intent on Monday to store Saudi crude oil in underground caverns on Jurong Island starting in the second half of 2027. The arrangement, unveiled during Singapore International Energy Week, follows severe shipment disruptions through the Strait of Hormuz caused by the US-Israeli war with Iran.

Tan See Leng, Singapore's Minister for Energy, Trade and Industry, stated the move contributes to Singapore's energy security and resilience during supply disruptions. The storage facility is located 150 meters underground and can hold up to 1.47 million cubic metres of liquid hydrocarbons. By placing supplies closer to Asian refiners, Saudi Arabia aims to defend its regional market share and maintain supply chains if Gulf export routes are blocked.

Saudi Aramco is signing a memorandum of understanding with Singapore's Energy Market Authority and JTC Corporation to finalize the deal within a few months. This strategic move follows similar storage agreements Saudi Arabia has established in Japan and South Korea to strengthen the flexibility of its supply network.