Singapore and Saudi Aramco plan to store Saudi crude oil in the underground Jurong Rock Caverns starting in 2027 to boost energy security amid global supply disruptions.
Tan See Leng, Singapore’s minister for energy, trade and industry, announced the joint intention during the Singapore Energy Lecture 2026 on Monday.
Tan said the arrangement would enhance the resilience of the Saudi crude oil supply chain across Southeast Asia.
The minister noted that the initiative would also contribute to the city-state’s energy security during supply emergencies.
“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, the Energy Market Authority and JTC signed a memorandum of understanding to finalize the storage agreement.
Officials aim to conclude negotiations within a few months.
The global energy landscape has faced significant challenges this year following the closure of the Strait of Hormuz.
Recent Houthi attacks on Saudi Arabian airports and energy infrastructure have further escalated the international energy situation.
Tan emphasized that the crisis in the Strait of Hormuz would not be the last supply disruption.
Singapore has established multiple lines of defense to mitigate the economic impact of sudden supply chain crunches.
The government requires electricity-generating turbines to run on either gas or diesel to draw on reserve fuels.
The country also plans to expand its liquefied natural gas (LNG) capacity by 50% with a second terminal by 2030.