Saudi Arabia to Store Crude Oil in Singapore from H2 2027 to Bolster Asian Supply

Saudi Arabia will begin storing crude oil in Singapore starting in the second half of 2027, a move designed to strengthen energy security and supply chain resilience for its key markets in Asia. The plan was announced Monday by energy ministers from both nations at the Singapore International Energy Week conference.

The Agreement

Under the terms of the new partnership, state-owned oil giant Saudi Aramco will store its crude at Singapore's Jurong Rock Caverns. A memorandum of understanding is set to be signed by Saudi Aramco, Singapore's Energy Market Authority, and JTC Corporation, with negotiations expected to conclude in the coming months.

"This arrangement will enhance the resilience of the Saudi crude oil supply chain to the Southeast Asian region," said Chan Chun Sing, Singapore's Minister for Trade and Industry. He added that it would also "bolster Singapore's energy security and resilience in the event of a supply disruption."

In a video address, Saudi Energy Minister Prince Abdulaziz bin Salman stated that the move would enhance the flexibility of the kingdom's supply network. "Deploying supplies in closer proximity to key Asian markets will... support Singapore's supply security and emergency preparedness," he said.

Strategic Rationale and Capacity

The decision comes amid broad market concerns over the stability of global energy supplies and the security of critical shipping routes. By pre-positioning crude in a major Asian trading hub, Saudi Arabia can respond more quickly to regional demand and mitigate risks associated with potential chokepoints in its supply chain.

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The Jurong Rock Caverns, located 150 meters underground, have a storage capacity for up to 1.47 million cubic meters of liquid hydrocarbons, which is equivalent to approximately 9 million barrels of crude oil and condensate.

Expansion of Saudi's Asian Storage Network

This partnership expands Saudi Aramco's existing strategic storage network in Asia, which is a core part of its strategy to serve its largest customer base. These arrangements typically grant the host nation priority access to the stored oil during a supply emergency.

Saudi Aramco's other key storage locations in the region include:

• Japan: An agreement allows for the storage of up to 8.2 million barrels of crude in Okinawa.
• South Korea: A five-year contract provides for 5.3 million barrels of storage at a facility in the port of Ulsan.