Saudi Arabia plans oil storage in Singapore from 2027

What was announced. On 26 October Singapore's energy minister Tan See Leng said that Saudi Arabia and Singapore share a joint intent to set up an arrangement for Saudi crude to be stored at the Jurong Rock Caverns from the second half of 2027. Saudi Aramco was due to sign an MOU with the Energy Market Authority and JTC the same day. The sides aim to conclude negotiations in a few months, so the details are not final.

The place. The caverns lie 150 metres underground on Jurong Island. JTC says they can hold up to 1.47 million cubic metres of liquid hydrocarbons such as crude oil and condensate. Reuters puts that at roughly 9 million barrels. JTC calls it the first commercial underground rock cavern facility for liquid hydrocarbons in South-east Asia. Going underground also saves about 60 hectares of land above ground, JTC says. That is the capacity of the whole site, not the Saudi share. The share has not been published.

Why now. Reuters says the war with Iran severely disrupted energy supplies shipped to Asia through the Strait of Hormuz, and countries drew down inventories. China, Japan and South Korea have built large oil stockpiles. Most other Asian countries have less of a buffer. Saudi Energy Minister Prince Abdulaziz bin Salman said that bringing supply closer to key Asian markets would strengthen the flexibility of the supply network. Singapore's minister said prices have risen this year, but there have been no fuel shortages or power outages.

How it compares. Saudi Aramco already stores crude in Japan and South Korea, where local governments have priority to buy the oil in an unexpected shortage, Reuters reports. Okinawa capacity was expanded to 8.2 million barrels in September 2017. In 2023 Aramco agreed with Korea National Oil Corp to store 5.3 million barrels in Ulsan for five years. Singapore would be the third Asian country to store Saudi crude. Whether Singapore gets a similar priority has not been said. We give no price forecasts and no advice to buy or sell.

Hechos confirmados

• On 26 October 2026 Singapore's energy minister Tan See Leng said Saudi Arabia and Singapore announce a joint intent to establish an arrangement for Saudi crude oil to be stored at the Jurong Rock Caverns from the second half of 2027.^[1][2]
• Saudi Aramco was due to sign an MOU with the Energy Market Authority and JTC on 26 October, and the sides aim to conclude negotiations in a few months.^[1][2]
• Singapore's minister said the arrangement enhances the resilience of the Saudi crude oil supply chain in Southeast Asia and contributes to Singapore's energy security in the event of supply disruptions.^[1]
• Saudi Energy Minister Prince Abdulaziz bin Salman said in a video recording that bringing supply closer to key Asian markets would strengthen the flexibility of the supply network.^[2]
• Jurong Rock Caverns lie 150 metres underground on Jurong Island and can store up to 1.47 million cubic metres of liquid hydrocarbons such as crude oil and condensate.^[3]
• Reuters puts the caverns' capacity at roughly 9 million barrels.^[2]
• JTC calls Jurong Rock Caverns the first commercial underground rock cavern facility for liquid hydrocarbons in South-east Asia and says it saves about 60 hectares of land above ground.^[3]
• Asia imported two-thirds of its oil supplies from the Middle East before the war, which severely disrupted energy supplies to Asia shipped through the Strait of Hormuz and led countries to draw down inventories.^[2]
• China, Japan and South Korea have built large oil stockpiles; most other Asian countries have less of a buffer.^[2]
• Saudi Aramco stores crude in Japan and South Korea, where local governments have priority to buy the supplies in the event of an unexpected shortage.^[2]
• Okinawa crude storage capacity was expanded to 8.2 million barrels in September 2017, and in 2023 Aramco agreed with Korea National Oil Corp to store 5.3 million barrels in Ulsan for five years.^[2]
• Singapore would be the third Asian country to store Saudi crude after Japan and South Korea.^[2]
• Singapore's minister said prices have risen this year, but there have been no fuel shortages or power outages.^[1]

Implicaciones

• ConfirmadoBoth governments present the plan as a supply security step for Asia and for Singapore.
• Nuestra lecturaSaudi crude stored in Singapore could be closer to Asian buyers in a disruption, which may shorten the time to deliver it.
• Nuestra lecturaThe volume and any priority purchase rights will decide how much the plan matters for Singapore and its neighbours.

Todavía no se sabe

• How much Saudi crude will be stored and what share of the caverns it will use.
• Whether Singapore or other buyers get priority purchase rights in a shortage, as Japan and South Korea do.
• Whether negotiations conclude in a few months and on what terms.
• What the MOU says: the speech and Reuters give no text.

A quién afecta

Singapore, Saudi Arabia, Asia. People who follow oil markets, energy security in Asia, or trade and shipping through Singapore

Fuentes

1. Ministry of Energy, Trade and Industry (Singapore): Singapore Energy Lecture 2026 by Minister for Energy, Trade and Industry (Energy and Industry) Dr Tan See Leng 26 de octubre de 2026 · oficial
2. Reuters: Saudi Arabia to store oil in Singapore to bolster Asia supply security 26 de octubre de 2026 · medios
3. JTC Corporation: Jurong Rock Caverns · oficial