Saudi Aramco plans crude storage in Singapore from the second half of 2027, using underground caverns to protect its Asian supply network

Saudi Aramco has finalized plans to store crude oil in Singapore from the second half of 2027, aiming to protect its Asian supply network from ongoing maritime blockades. Saudi and Singaporean energy ministers jointly announced the agreement, which will use the underground Jurong Rock Caverns to buffer Southeast Asian buyers against systemic shipping delays.

The decision follows data compiled by the Washington Institute for Near East Policy showing October was the worst month for commercial shipping strikes near the Strait of Hormuz and the Bab al-Mandab Strait.

Speaking at an industry conference in Singapore today, International Energy Agency head Fatih Birol warned that global energy markets would not return to their pre-war equilibrium by 2027. He said governments and energy conglomerates must treat supply-chain resilience as an imperative, rather than a temporary emergency response.

Officials said Aramco will sign a formal memorandum of understanding with Singapore’s Energy Market Authority and JTC Corporation to operationalize the facility, ensuring continuous delivery across Southeast Asia even during prolonged regional blockades.