Saudi, Singapore Announce Oil Storage Deal
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Singapore’s Ministry of Energy, Trade, and Industry (ETI) and Saudi Arabia’s Ministry of Energy (MOE) announced, in a joint statement, an intent to establish a crude oil storage arrangement in Singapore.
“To mark this occasion, Singapore’s Energy Market Authority and JTC Corporation exchanged a Memorandum of Understanding with the Saudi Arabian Oil Company at the Singapore International Energy Week (SIEW), as a first step towards realizing this arrangement,” the statement, which was posted on ETI’s website and MOE’s X page, noted.
Under the proposed arrangement, Saudi crude oil would be stored at the Jurong Rock Caverns on Singapore’s Jurong Island, according to the statement, which revealed that storage operations are expected to commence in the second half of 2027.
“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 statement highlighted.
“The arrangement will also enhance the resilience of the Saudi crude oil supply chain in Southeast Asia,” it added.
“The proposed arrangement marks a new milestone in energy cooperation between Singapore and the Kingdom of Saudi Arabia,” it continued.
“It also reflects the two countries’ shared commitment to strengthening regional energy security and recognizes Singapore’s roles as a key regional energy hub,” it went on to state.
Advertisement - Scroll to continueThe statement highlighted that Singapore’s Ministry of Energy, Trade, and Industry and the Kingdom of Saudi Arabia’s Ministry of Energy “will work closely to advance the arrangement and coordinate its implementation with relevant entities”.
A statement posted on MOE’s X page on Monday highlighted that, during his participation in SIEW 2026, Prince Abdulaziz bin Salman, Saudi Arabia’s Minister of Energy and Minister of Industry and Mineral Resources, “underscored that energy security requires more resilient systems, sustained investment, and trusted partnerships to navigate challenges and ensure continuity of supply”.
“The Minister also highlighted the importance of deeper cooperation with Singapore and Saudi Arabia’s partners across Asia to advance energy security and shared prosperity,” that statement added.
Withstanding Supply Disruptions
A statement posted on SIEW’s website today noted that stronger partnerships and regional connectivity can help countries withstand energy supply disruptions.
The statement highlighted that, at the Ministerial Keynote Address during SIEW 2026, Al-Saud and YAB Datuk Amar Haji Fadillah bin Haji Yusof, Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Malaysia, outlined their approaches to strengthening energy security.
“Al-Saud … focused on supply preparedness and cooperation with Singapore,” the statement pointed out.
“Yusof … emphasized regional electricity connectivity and investment,” it added.
“H.R.H. Prince Abdulaziz highlighted Singapore’s refining, trading, and shipping capabilities as a basis for closer energy cooperation. He referred to ongoing discussions between Saudi Arabia and Singapore on storing Saudi crude oil at Jurong Rock Caverns,” it continued.
“Prince Abdulaziz said bringing supplies closer to Asian markets could improve supply flexibility and Singapore's preparedness for disruptions. He also saw potential to expand this cooperation over time,” it said.
The statement pointed out that Al-Saud said Saudi Arabia’s East-West pipeline, strategic facilities, and domestic supply chains have strengthened the country’s ability to respond to disruptions.
“The country is also investing in gas, renewables and electricity networks. H.R.H. Prince Abdulaziz called for producers and consumers to work together to protect energy infrastructure and supply routes,” the statement highlighted.
ASEAN Power Grid
The statement went on to note that Yusof placed the ASEAN Power Grid at the center of regional energy security.
During Malaysia’s ASEAN Chairmanship in 2025, the country worked with partners to advance the enhanced ASEAN Power Grid Memorandum of Understanding, the statement said, adding that the Lao People’s Democratic Republic-Thailand-Malaysia-Singapore Power Integration Project “has demonstrated that multilateral electricity trading is possible”.
“Malaysia and Singapore are pursuing greater cross-border electricity trade and interconnection,” Yusof said, the statement highlighted.
“Stronger grids could support renewable energy integration and offer additional supply options during disruptions,” he added.
The statement pointed out that, while the two ministers approached energy security from different perspectives, both emphasized the need for greater cooperation.
“Turning that cooperation into stronger energy resilience will require sustained investment in infrastructure and closer partnerships across borders,” it stated.
Onshore Inventories
In a speech at the 25th World Petroleum Congress (WPC) Energy Conference in Riyadh, Saudi Arabia, recently, Aramco President and CEO Amin H. Nasser warned that, globally, the squeeze on crude oil is serious.
“Commercial onshore inventories are now well below six billion barrels, and they are the last available buffer,” he said.
“If that is not scary enough, the vast majority of these barrels are locked up,” he added, noting that the inventory “cushion” is “barely a cushion at all”.
Nasser highlighted in the speech that refilling inventories while meeting demand could take up to two years.
In this speech, Aramco’s CEO noted that the company’s strength lies in “integrated layers”, which he described as “rigorous facility standards, the operational flexibility of spare capacity and diverse export routes, and the digital protection required in an age of cyber vulnerability”.
Nasser went on to reveal in that speech that, in alignment with Saudi Arabia’s Ministry of Energy, Aramco was studying additional crude export routes and working on expanding overseas storage.
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MORE FROM THIS AUTHOR Andreas Exarheas
Editor | Rigzone
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
