Saudi Arabia Turns to Singapore for Oil Storage
Saudi Arabia has struck a deal with the Singaporean government to store crude oil in underground caverns in the city-state, Bloomberg reported today. The report follows the latest Houthi attacks on Saudi infrastructure over the weekend, which included oil facilities among their targets. The Saudi crude will be stored in the Jurong Rock Caverns, which are part of a petrochemical complex in…
Saudi Arabia has entered into an agreement with the Singaporean government to store crude oil in underground caverns in Singapore, according to Bloomberg. The storage facility is set to begin receiving shipments from Saudi Aramco in the second half of next year. The caverns, located in the Jurong Rock Caverns complex, have a capacity of 1.47 million cubic meters of crude oil, condensates, and other liquids, equivalent to 9 million barrels.
In response to the recent Houthi attacks on Saudi infrastructure, including oil facilities, Saudi Arabia's energy exports have been disrupted. To mitigate the impact, Saudi Aramco is seeking additional storage capacity abroad. Singapore's energy minister, Tan See Leng, stated that the agreement enhances the resilience of Saudi crude oil supply chains in Southeast Asia and contributes to Singapore's energy security.
Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, added that the arrangement will strengthen the flexibility of the supply network and support Singapore's security of supply and preparedness. The deal comes as Asia remains a key market for Saudi Arabia and other Middle Eastern oil producers, facing significant challenges due to the ongoing war between the U.S. and Israel, and Iran.
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