Saudi Arabia’s Ministry of Energy and Singapore’s Ministry
of Trade and Industry announced the joint initiative, with storage operations
expected to begin in the second half of 2027.
As an initial step, Singapore’s Energy Market Authority and
JTC Corporation exchanged a memorandum of understanding with Aramco
during Singapore International Energy Week (SIEW).
The two countries’ energy ministries will work together to
advance the proposed arrangement and coordinate its implementation with
relevant entities.
Under the plan, Saudi crude oil will be stored at the
underground storage facility on Jurong Island.
The reserves are intended to support Singapore’s energy
needs during potential supply disruptions, strengthening the city-state’s
energy security and resilience.
The arrangement is also expected to improve the resilience
of Saudi Arabia’s crude oil supply chain in Southeast Asia, reinforcing the
kingdom’s regional energy presence.
The initiative reflects both countries’ commitment to
enhancing regional energy security and strengthening bilateral energy
cooperation.
It also underscores
Singapore’s position as a key regional energy hub.
Further coordination between the two governments and
relevant entities will support the development and implementation of the
proposed storage arrangement ahead of its planned operational start in 2027. -OGN/TradeArabia News Service