Singapore’s Minister for Energy, Trade and Industry Dr. Tan See Leng said Saudi Arabia and Singapore were announcing their joint intent to establish an arrangement for Saudi crude oil to be stored at the Jurong Rock Caverns from the second half of 2027.
Prince Abdul Aziz Bin Salaman Al Saud highlighted Saudi Arabia’s commitment to supply energy reliably to markets globally despite ongoing geopolitical tensions that threaten to disrupt supply chains.
Tan said the arrangement would enhance the resilience of the Saudi crude oil supply chain in Southeast Asia and contribute to Singapore’s energy security and resilience in the event of supply disruptions.
Saudi Aramco was expected to sign a Memorandum of Understanding with the Energy Market Authority of Singapore, Tan said, as the announcement was made during the first day of the Singapore International Energy Week (SIEW).
Tan said Saudi Aramco would sign a memorandum of understanding with the Energy Market Authority and JTC Corporation on Monday, and he added that negotiations were expected to be concluded within a few months. The plan would use Singapore’s Jurong Rock Caverns, an underground facility, to store Saudi crude oil, and the report did not specify the volume of crude oil to be stored or the financial value of the arrangement.
Energy ministers from both countries announced on Monday that Saudi Arabia planned to store crude oil at Jurong Rock Caverns from the second half of 2027 to bolster Asia supply security. Prince Abdulaziz bin Salman Al-Saud said in a video recording that bringing supply closer to key Asian markets would strengthen the flexibility of the supply network and support Singapore’s security of supply and preparedness.
The rock caverns at Jurong Island, located at a depth of 150 metres (492 feet) below ground, can store up to 1.47 million cubic metres, or roughly 9 million barrels of liquid hydrocarbons such as crude oil and condensate. Saudi Aramco currently stores crude in Japan and South Korea, where local governments have priority to buy the supplies in the tanks in the event of an unexpected shortage.
What some reports left out
Jurong caverns can store up to about 9 million barrels
Reported by
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The plan was announced on Monday as a move to bolster energy supply security in the region after oil supplies to Asia were severely choked in the Strait of Hormuz due to the US-Iran war. Tan See Leng said, “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,” at the Singapore International Energy Week conference.
Shoreline refinery structures, tanks and pipework under a cloudy sky27 February 2011 · Archive photoPhoto: Jacklee., CC BY-SA 3.0