Singapore to Store Oil for Saudi Arabia
admin Saudi Arabia has reached an agreement with the Singaporean government to store crude oil in underground facilities within the city-state. This initiative follows recent Houthi attacks targeting Saudi infrastructure, including energy facilities.
The crude will be housed in the Jurong Rock Caverns, an underground storage facility located within a petrochemical complex in southern Singapore. Shipments to the site are scheduled to commence in the second half of next year. The caverns hold a capacity of 1.47 million cubic meters—equivalent to 9 million barrels—for storing crude oil, condensates, and other liquid hydrocarbons.
Concurrently, Saudi Aramco is seeking additional storage capacity internationally. The kingdom’s energy sector faces ongoing pressures from expanding regional conflict in the Persian Gulf and Red Sea, where Yemeni Houthi forces continue to target shipping vessels and energy infrastructure. These disruptions have altered Saudi Arabia’s export operations, leading Aramco to conduct ship-to-ship transfers in the Gulf of Oman and reroute tankers through the Suez Canal.
Singapore’s Energy Minister, Tan See Leng, noted that the agreement enhances the resilience of the Saudi crude supply chain in Southeast Asia while bolstering Singapore’s own energy security during potential market disruptions.
Saudi Energy Minister Prince Abdulaziz bin Salman stated that positioning inventories closer to major Asian consumers increases the flexibility of the country’s distribution network and supports regional energy readiness, adding that further cooperation between the two nations remains possible.
Asia remains the primary destination for Middle Eastern crude exports, making the region particularly vulnerable to supply chain disturbances stemming from broader regional conflicts.
