Saudi crude storage in Singapore will begin at the Jurong Rock Caverns in the second half of 2027, energy ministers from both countries said on Monday. The aim is to protect supply to Asian buyers if the war disrupts shipments again.
Why Saudi crude storage in Singapore matters
Before the war, Asia bought two-thirds of its crude from the Middle East, Reuters reported. Since then, attacks around the Strait of Hormuz have cut those flows. As a result, holding oil near buyers gives Aramco more flexibility.
Singapore’s minister Tan See Leng announced the plan at Singapore International Energy Week. Similarly, Saudi Energy Minister Prince Abdulaziz bin Salman said it would support Singapore’s security of supply.
The caverns
The caverns sit 150 metres under Jurong Island. They can hold up to 1.47mn cubic metres of liquids such as crude and condensate, or ~9.2mmbbl. However, neither side gave the volume Aramco will store, or the terms.
The plan follows a row over supply terms with Asian refiners. Read our report on Aramco’s term-contract dispute.
For a deeper analysis, read: Jurong Rock Caverns: What ~9mmbbl of Saudi Crude in Singapore Can and Cannot Do
