Singapore secures Saudi crude storage plan for 2027

Singapore and Saudi Arabia have reached an agreement to store crude oil underground on Jurong Island in Singapore starting in the second half of 2027. This move aims to improve supply safeguards amidst disruptions caused by the Iran conflict. The agreement, announced during Singapore International Energy Week, involves Saudi Aramco and Singapore's Energy Market Authority and JTC Corporation.

The crude oil would be stored at Jurong Rock Caverns, an underground complex designed for liquid hydrocarbons. The deal is subject to further negotiations, which Singapore anticipates concluding within a few months. The initiative would bring Saudi oil closer to Southeast Asian customers and provide Singapore with additional supplies for potential supply interruptions.

The agreement does not specify the volume of crude oil earmarked for storage or the commercial terms. The arrangement is seen as a step towards strengthening Saudi Arabia's regional supply chain and enhancing Singapore's resilience to energy disruptions. Jurong Rock Caverns, located 150 meters beneath Jurong Island, has a capacity for approximately 1.47 million cubic meters, or roughly nine million barrels, of crude oil and condensate.

This capacity represents the overall facility, not the amount allocated to Saudi Aramco. Singapore's government says the storage would support domestic energy needs during supply interruptions and reinforce the reliability of Saudi crude deliveries to Southeast Asia. The project is part of broader efforts to protect energy supplies following disruptions to Gulf shipping and infrastructure.