Singapore, Saudi Aramco Plan Underground Crude Oil Storage
Singapore’s Minister for Energy, Trade and Industry, Tan See Leng, announced the joint plan during the Singapore Energy Lecture 2026 on Monday.
Tan said the arrangement would improve the resilience of Saudi crude oil supplies across Southeast Asia and help Singapore maintain energy security during emergencies affecting supplies.
"Today, Saudi Arabia and Singapore are announcing our joint intent to establish an arrangement for Saudi crude oil to be stored at the Jurong Rock Caverns from the second half of 2027," the minister said.
Saudi Aramco, Singapore’s Energy Market Authority and JTC signed a memorandum of understanding to work toward finalizing the storage arrangement. Officials expect negotiations to conclude within the coming months.
Global energy markets have faced considerable pressure this year following the closure of the Strait of Hormuz. Recent Houthi attacks targeting Saudi airports and energy infrastructure have added to concerns over international energy supplies.
Tan stressed that the disruption in the Strait of Hormuz would not be the final supply crisis, highlighting the need for measures to protect against future interruptions.
Singapore has developed several safeguards to limit the economic consequences of sudden supply shortages. Under existing requirements, electricity-generating turbines must be capable of operating on either natural gas or diesel, allowing the country to use reserve fuels when necessary.
Singapore also intends to increase its liquefied natural gas (LNG) capacity by 50% through the construction of a second terminal by 2030.
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