Saudi Arabia has reached an agreement with the Singaporean government to store crude oil in underground caverns in the city-state (Saudi press agency, 26/10/2026). “Under the proposed arrangement, Saudi crude oil would be stored at the Jurong Rock Caverns on Singapore’s Jurong Island. Storage operations are expected to commence in the second half of 2027”, reported the Saudi Press Agency. “The stored crude oil will support Singapore’s energy needs in the event of a supply disruption, strengthening Singapore’s energy security and resilience. The arrangement will also enhance the resilience of the Saudi crude oil supply chain in Southeast Asia”, the agency added.
The Jurong Rock Caverns can accommodate up to 1.47 mcm of liquid hydrocarbons, equivalent to approximately 9 mbl of crude oil and condensate (Reuters, 26/10/2026). Saudi Aramco already maintains crude oil storage facilities in Japan and South Korea, where local governments have priority access to purchase the stored supplies in the event of an unexpected shortage.
The agreement comes amid repeated attacks on Saudi infrastructure, including energy facilities, involving missiles and drones claimed by the Houthis. These attacks previously forced the closure of the East-West pipeline, which enables Saudi crude oil exports through the Red Sea, although the pipeline has since resumed operations. Asia remains a key destination for Saudi oil exports, accounting for a significant share of the country’s shipments.