Key Takeaways
- Saudi Arabia plans to store crude oil in Singapore’s Jurong Rock Caverns starting in 2027.
- The move aims to bolster supply security in the region following disruptions from the US-Israeli war with Iran.
- The storage capacity will enhance flexibility in supply networks and support Singapore’s energy security.
Saudi Arabia has announced plans to store crude oil at Singapore’s Jurong Rock Caverns from the second half of 2027, according to energy ministers from both countries.
This decision comes in response to recent disruptions in energy supplies to Asia, which were severely impacted by the US-Israeli war with Iran, leading to concerns about stockpile levels.
The move is expected to strengthen the resilience of the Saudi crude oil supply chain in Southeast Asia, as well as contribute to Singapore’s energy security in the event of supply disruptions.
Top officials from Makkah pact countries will meet Iranian officials in Tehran on Monday, according to two sources.
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman Al-Saud stated in a video recording at the Singapore International Energy Week conference that bringing supply closer to key Asian markets would strengthen the flexibility of their supply network.
The rock caverns at Jurong Island, located 150 metres below the ground, can store up to 1.47 million cubic metres of liquid hydrocarbons, or roughly 9 million barrels of crude oil and condensate.
Saudi Aramco currently stores crude in Japan and South Korea, where local governments have priority to buy the supplies in the event of an unexpected shortage.
In 2023, Aramco signed a deal with Korea National Oil Corp to store 5.3 million barrels of oil in South Korea’s reserve facilities in the port of Ulsan for five years.
Japan is also in talks with Asian countries to boost crude reserves across the region, part of the Partnership in Wide Energy and Resources Resilience Asia initiative proposed by Prime Minister Sanae Takaichi.
