Singapore’s Energy Market Authority and JTC Corp. signed a memorandum of understanding with Saudi Aramco on Monday at Singapore International Energy Week. Under the deal, Saudi crude oil would be stored at the Jurong Rock Caverns from the second half of 2027. The caverns sit 150 meters below ground on Jurong Island.
The storage complex has a total liquid hydrocarbon capacity of 1.47 million cubic metres. Saudi Aramco already stores 8.2 million barrels in Okinawa, Japan, under a renewed three-year agreement signed in November 2025.
Supply pressures behind the move
The announcement follows severe disruption to energy supplies caused by the war between the US and Israel with Iran. That conflict hit oil shipments through the Strait of Hormuz and led several Asian countries to reduce their oil reserves. Reuters has said that before the war, two-thirds of Asia’s oil imports came from the Middle East.
The city-state has also recently renewed an MoU with QatarEnergy and signed an agreement with Abu Dhabi National Oil Co. to form a joint energy task force.
Terms still to be settled
Tan See Leng, Singapore’s Minister for Energy, Trade and Industry, said the parties aim to conclude negotiations within the next few months. The joint statement did not disclose the volume of Saudi crude to be stored. It also gave no financial terms.
