Saudi Arabia plans to store oil in Singapore from 2027 — Asharq Al-Awsat

Saudi Arabia plans to store crude oil from the second half of 2027 in the underground Jurong Rock Caverns storage facilities on Jurong Island in Singapore. Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud and Singapore’s Minister for Energy and Manpower Tan See Leng announced the joint intention, Asharq Al-Awsat reports.

Stocks closer to Asian markets

Tan See Leng said at Singapore International Energy Week that the planned arrangement is intended to strengthen the resilience of Saudi oil’s supply chain to Southeast Asia. According to him, it will also contribute to Singapore’s energy security and its preparedness for potential supply disruptions.

Prince Abdulaziz bin Salman Al Saud said in a video address that locating stocks closer to key Asian markets would enhance the flexibility of the supply network and support the security of supplies to Singapore.

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Capabilities of the underground complex

Jurong Rock Caverns are located 150 metres underground. The complex can store up to 1.47 million cubic metres, or approximately 9 million barrels, of liquid hydrocarbons, including crude oil and condensate. The volume planned to be allocated for Saudi oil has not been specified.

Saudi Aramco already stores oil in Japan and South Korea, where local governments have priority rights to purchase stocks from the facilities in the event of an unexpected shortage. In 2017, storage capacity in Okinawa was expanded to 8.2 million barrels. In 2023, Aramco concluded a five-year agreement with Korea National Oil Corp to store 5.3 million barrels of oil at reserve facilities in the port of Ulsan.