Saudi Arabia plans to begin storing crude oil at Singapore’s Jurong Rock Caverns in the second half of 2027 to strengthen energy security and protect supply chains across Asia. The agreement, according to Reuters, says Saudi Aramco, Singapore’s Energy Market Authority and JTC Corporation will follow major disruptions to oil shipments through the Strait of Hormuz linked to the U.S.-Israeli war with Iran.
The underground storage facility, located about 150 meters beneath Jurong Island, can hold approximately 9 million barrels of liquid hydrocarbons. Storing Saudi crude closer to Asian markets would improve supply flexibility and help Singapore maintain access to oil during emergencies. The countries expect to finalize commercial negotiations in the coming months.
The initiative reflects broader efforts across Asia to strengthen energy reserves and reduce vulnerability to supply disruptions. Saudi Arabia already stores oil in Japan and South Korea, while other regional countries are exploring ways to build strategic stockpiles.
