Saudi Arabia announced plans to store crude oil at Singapore’s Jurong Rock Caverns starting in the second half of 2027, aiming to enhance energy supply security in Asia. The decision was disclosed during the Singapore International Energy Week conference by energy ministers from both countries.

This initiative seeks to address vulnerabilities in the region's oil supply chain following recent disruptions. The ongoing conflict involving the United States, Israel, and Iran has significantly affected energy shipments passing through the Strait of Hormuz, a critical chokepoint for Middle Eastern oil exports to Asia. Prior to the conflict, Asia relied on the Middle East for about two-thirds of its oil imports, leading countries to draw down strategic reserves amid growing concerns over stockpile sufficiency worldwide.

Tan See Leng, Singapore’s Minister for Energy, Trade and Industry, highlighted the arrangement's role in bolstering both Saudi Arabia’s supply chain resilience in Southeast Asia and Singapore’s own energy security. He revealed that Saudi Aramco, Saudi Arabia’s state oil company, is expected to sign a memorandum of understanding with Singapore’s Energy Market Authority and JTC Corporation, with negotiations anticipated to conclude within several months.

“Bringing supply closer to key Asian markets would strengthen the flexibility of our supply network and support Singapore’s security of supply and preparedness,” said Saudi Energy Minister Prince Abdulaziz bin Salman Al-Saud in a prerecorded message at the event.

The partnership marks a strategic move to safeguard energy supplies amid heightened geopolitical tensions and volatility in global oil markets. By storing Saudi crude oil in an underground facility located in a major regional trading hub, both countries aim to improve the readiness to manage potential disruptions and ensure steadier availability of vital energy resources for Asia.