Singapore and Saudi Arabia Sign MOU for Saudi Crude Storage in Jurong Rock Caverns from H2 2027
What happened
On October 26, 2026, Singapore and Saudi Arabia signed an agreement to store Saudi Aramco crude oil inside Singapore’s underground Jurong Rock Caverns starting in the second half of 2027.
The Context
* Chokepoint defense: Trade disruptions in the Strait of Hormuz and the Red Sea prompted Riyadh to duplicate its East Asian storage footprint—already active in Japan and South Korea—directly within Southeast Asia. * Hub fortification: Singapore is anchoring physical inventory on Jurong Island to cushion regional energy markets against sudden geopolitical shocks. * Commercial alignment: The deal formalizes cooperation among Saudi Aramco, Singapore’s Energy Market Authority, and JTC Corporation, with binding operational terms targeted in the coming months.
The Number
—the hydrocarbon capacity of the Jurong Rock Caverns complex, giving regional operators a substantial physical buffer against Middle Eastern transport disruptions.
Takeaway
Expect final commercial terms to conclude within months, unlocking operational storage by late 2027 and setting a baseline for regional inventory security across Asia.
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