Saudi Aramco Signs Singapore Crude Oil Storage Agreement, Set to Launch in 2027

en.Wedoany.com Reported - On October 26, Saudi Aramco, the Energy Market Authority of Singapore, and JTC Corporation exchanged a memorandum of understanding on crude oil storage cooperation during Singapore International Energy Week, planning to store Saudi crude oil at the underground rock cavern oil storage facility on Jurong Island, Singapore, starting in the second half of 2027. The energy authorities of Saudi Arabia and Singapore will jointly advance the cooperation arrangements, with related commercial negotiations expected to be completed within the coming months.

The Jurong Rock Caverns facility tasked with the storage is located approximately 150 meters underground on Jurong Island, with a total capacity of about 1.47 million cubic meters, equivalent to 9 million barrels of liquid hydrocarbons, and can be used to store crude oil and other petroleum products. The facility was developed by JTC Corporation, utilizing underground rock cavern space to provide large-scale petroleum storage conditions. Saudi Aramco plans to use the existing facility for its storage operations, with the specific storage volumes to be determined by subsequent commercial arrangements.

Under the cooperation plan proposed by both parties, Saudi crude oil stored in Singapore will be used to safeguard regional supply. In the event of an oil supply disruption, the stored crude oil can provide Singapore with a supplementary energy source while also supporting Saudi Aramco's crude oil deliveries in the Southeast Asian market. The energy authorities of both countries will coordinate relevant agencies to advance the use of the storage facility and the implementation of the cooperation.

Saudi Aramco has previously engaged in overseas crude oil storage cooperation with Japan and South Korea, establishing crude oil inventories abroad by utilizing existing storage facilities in major Asian consumer markets. In June 2026, Saudi Arabia and South Korea also signed an energy cooperation memorandum involving the expansion of Saudi crude oil storage within South Korea's strategic petroleum reserves. The Singapore project will further expand Saudi Arabia's crude oil storage footprint in Asia.

Affected by disruptions to energy transportation in the Middle East, crude oil shipments through the Strait of Hormuz continue to be disturbed. Information published by Singapore on October 6 shows that Saudi Arabia's East-West Pipeline had also previously experienced a temporary suspension of operations, affecting Saudi Arabia's crude oil transportation capacity bypassing the Strait of Hormuz. With the advancement of the Singapore storage cooperation, Saudi Aramco plans to allocate part of its crude oil inventory to locations closer to Southeast Asian consumer markets.