Saudi Arabia to Store Oil in Singapore Starting Second Half of 2027
This will allow the Kingdom to bring crude oil closer to key Asian markets
The joint intention to create a mechanism for storing Saudi oil was announced by the energy ministers of both countries during the Singapore International Energy Week.
The site for storing the crude oil will be the Jurong underground rock caverns, located at a depth of 150 meters. They can hold up to 1.47 million cubic meters (approximately 9 million barrels) of liquid hydrocarbons—oil and gas condensate.
Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, emphasized that this step will make the country's logistics network more flexible: "Bringing supply sources closer to key Asian markets will make our supply network more flexible and also support Singapore's energy security and preparedness for unforeseen situations."
In turn, Singapore's Minister of Energy, Trade, and Industry, Tan See Leng, noted that the agreement will enhance the resilience of the supply chain in Southeast Asia and protect Singapore itself in the event of potential disruptions in the global market.
For the national oil company Saudi Aramco, this is not the first such experience: similar oil storage agreements are already in place with Japan and South Korea. Under the terms of such agreements, in the event of a force majeure shortage in the market, the host country's government gains priority rights to purchase the crude oil stored in the facilities.
