Saudi Arabia plans to store crude oil on Singapore’s Jurong Island starting from the second half of 2027.

(1) The energy ministers of Saudi Arabia and Singapore announced on Monday that Saudi Arabia plans to store crude oil in underground caverns on Singapore's Jurong Island starting from the second half of 2027, in order to enhance supply security in the region. (2) This move comes at a time when the war between the United States and Israel against Iran has severely disrupted oil supplies to Asia through the Strait of Hormuz; before the war, two thirds of Asia's crude oil supply originated from the Middle East. (3) At the Singapore International Energy Week conference, Singapore’s Minister for Trade and Industry and Energy Chief, Tan See Leng, stated that both countries jointly intend to establish an arrangement to store Saudi crude oil in underground caverns on Jurong Island from the second half of 2027; this will strengthen the resilience of the Saudi crude oil supply chain in Southeast Asia and also contribute to Singapore's energy security and resilience during supply disruptions. (4) Tan See Leng said that Saudi Aramco will sign a memorandum of understanding with the Energy Market Authority of Singapore and JTC Corporation on Monday, with the goal of completing negotiations within a few months.