Saudi Arabia plans to store crude oil in Singapore from the second half of 2027
Singapore Minister for Energy, Trade and Industry Tan See Leng said on Monday that Saudi Arabia plans to store crude oil in Singapore’s Jurong Rock Caverns from the second half of 2027. The arrangement aims to strengthen the resilience of Saudi crude oil in Southeast Asia’s supply chain and enhance Singapore’s energy security.
Tan See Leng announced at the Singapore International Energy Week conference that Saudi Arabia and Singapore intend to establish this arrangement. Saudi Aramco will sign a memorandum of understanding on Monday with Singapore’s Energy Market Authority and JTC Corp, with the aim of completing negotiations within months.
Jurong Rock Caverns, located about 150 meters underground on Jurong Island, is Southeast Asia’s first commercial underground liquid hydrocarbon storage facility and can store crude oil and other products. Saudi Arabia has recently faced attacks by the Houthis on its energy infrastructure.
Original sources:
Title: Saudi Arabia to store crude oil in Singapore from second half of 2027 Publisher: Reuters Publication date: 2026-10-26 URL: https://www.reuters.com/business/energy/saudi-arabia-store-crude-oil-singapore-second-half-2027-2026-10-26/ Nature of source: News report Verification status: Read in this session Supported content: Tan See Leng announced the storage plan, timeline, memorandum of understanding arrangement and resilience goal
Title: Singapore faces energy risks with 'resource nationalism' that undermines contracts Publisher: The Business Times Publication date: 2026-10-26 URL: https://www.businesstimes.com.sg/companies-markets/singapore-faces-energy-risks-resource-nationalism-undermines-contracts-tan-see-leng Nature of source: News report Verification status: Read in this session, cross-checked with Reuters Supported content: Jurong Rock Caverns storage arrangement; Aramco signing a memorandum of understanding; recent Houthi attack backdrop
ABAB AI Insight
This arrangement moves Saudi crude oil storage points to a subterranean facility in Singapore. Jurong Rock Caverns was commissioned in 2014 and has a total capacity of about 1.47 million cubic meters. The storage itself does not change crude oil ownership or the eventual sales route, but it shortens the response distance from the Middle East to Southeast Asian markets.
Tan See Leng described this as a measure to enhance supply-chain resilience and Singapore’s energy security. The Business Times report places the arrangement against the backdrop of recent Houthi attacks on Saudi Arabia. After the memorandum of understanding is signed, negotiations will still take months, and the specific storage volume, fees and call-up conditions have not been disclosed.
As a regional energy hub, Singapore has already used underground storage to free up surface land for other industrial uses. Saudi Arabia’s overseas storage arrangements have previously included South Korea and Japan. Follow-up points include the timing of the completion of negotiations and the actual storage volume.
ABAB News · Cognitive Law
Exporting countries can shorten response times to end markets through overseas storage points.
Underground rock cavern storage simultaneously meets safety and land-saving needs.
There remains a negotiation gap between a memorandum of understanding and a final contract.