Saudi Arabia, Singapore Plan Crude Oil Storage Deal

Saudi Arabia and Singapore have announced a joint intent to establish a facility for storing Saudi crude oil in Singapore, in a move aimed at strengthening energy security for Southeast Asia. The announcement, made in October 2026, marks an initial step rather than a finalized commercial agreement.

The proposed site is the Jurong Rock Caverns on Jurong Island, located roughly 150 metres underground. The facility has a total capacity of approximately 1.47 million cubic metres, or about 9 million barrels, designed to hold crude oil and condensates. The exact share of that capacity set aside specifically for Saudi crude has not been disclosed.

Storage operations are expected to begin in the second half of 2027. The arrangement is intended to improve the resilience of Saudi crude supplies to the region, while giving Singapore the ability to draw on stored crude during any supply disruptions.

Why it matters

For residents and businesses across Saudi Arabia, the development reflects the Kingdom's continued role as a reliable supplier of energy to key global markets. A dedicated storage presence in a major trading hub like Singapore can help stabilize supply flows and support long-term partnerships in Asia.

At this stage, no Saudi-specific storage fee, investment amount, commercial price, validity period, or final operating contract has been publicly disclosed. The signed memorandum is an early framework, and further details are expected as the two sides move toward a completed storage agreement.

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