Saudi Arabia and Singapore to Store Crude Oil in Jurong Rock Caverns Starting 2027

Saudi Arabia and Singapore announced a joint agreement to establish a crude oil storage arrangement in the city-state, with operations set to begin in the second half of 2027. The crude will be held in the Jurong Rock Caverns, located within Singapore's southern petrochemicals and refining complex. Singapore's Minister for Energy, Trade and Industry, Tan See Leng, made the announcement at the Singapore International Energy Week conference on Monday, with both countries' energy ministries issuing a formal joint statement.

The arrangement is designed to serve two strategic purposes: supporting Singapore's energy security in the event of a supply disruption, and strengthening the resilience of Saudi Aramco's crude oil supply chain across Southeast Asia. The deal comes amid ongoing disruption to Middle East energy flows linked to the US-Iran conflict. Aramco already holds similar crude storage agreements with South Korea and Japan, making Singapore the latest addition to its Asia-Pacific storage network.

By using Singapore's Jurong Rock Caverns, the deal positions the city-state as a more critical node in regional energy infrastructure. The arrangement gives Southeast Asia a closer strategic reserve of Saudi crude at a time when supply chain security in the region has become a heightened concern.