Doha:The Kingdom of Saudi Arabia's Ministry of Energy and Singapore's Ministry of Energy, Trade and Industry have announced their joint intent to establish a crude oil storage arrangement in Singapore. This announcement was made during the Singapore International Energy Week (SIEW), where a memorandum of understanding was exchanged between Singapore's Energy Market Authority, JTC Corporation, and the Saudi Arabian Oil Company, marking the first step towards this initiative.
According to Saudi Press Agency, the ministries from both countries will collaborate closely to advance the arrangement and coordinate its implementation with relevant entities. The proposed plan involves storing Saudi crude oil at the Jurong Rock Caverns located on Singapore's Jurong Island, with operations expected to commence in the second half of 2027.
The stored crude oil is intended to bolster Singapore's energy security by ensuring a reliable supply in the event of disruptions. This arrangement aims to enhance the resilience of the Saudi crude oil supply chain within Southeast Asia, further solidifying the energy partnership between Singapore and Saudi Arabia.
This initiative signifies a significant milestone in energy cooperation between the two nations and emphasizes their commitment to regional energy security, acknowledging Singapore's strategic position as a key energy hub in the region.