Saudi Aramco Plans to Store Oil at Singapore's Jurong by H2 2027
nashnova research
Saudi Arabia and Singapore announced plans to store Saudi crude in the Jurong Rock Caverns from the second half of 2027 — the latest move by Aramco to push its supply chain closer to Asian buyers after the Strait of Hormuz disruptions.
What exactly was announced?
Energy ministers from both countries revealed the plan at Singapore International Energy Week: Saudi crude will enter the Jurong Rock Caverns starting H2 2027.
The caverns sit roughly 150 meters underground and hold up to 1.47 million cubic meters of liquid hydrocarbons, including crude and condensate.
Aramco will sign an MOU with Singapore's Energy Market Authority and JTC Corporation the same day, with negotiations expected to conclude within months.
Why move oil to Singapore now?
The direct trigger: the US–Israel conflict with Iran severely disrupted shipping through the Strait of Hormuz. Before the conflict, roughly two-thirds of Asia's crude imports transited that chokepoint.
This means → if the strait is blocked, Asian buyers have almost no buffer. Pre-positioning crude in a consumption hub is the equivalent of building an emergency depot at the buyer's doorstep.
Singapore Trade Minister Gan Kim Yong said the arrangement will strengthen the resilience of Saudi crude supply chains in Southeast Asia and improve Singapore's emergency response during disruptions.
How much has Aramco already positioned across Asia?
Japan (Okinawa): storage expanded to 8.2 million barrels in September 2017.
South Korea (Ulsan): a 2023 deal with Korea National Oil Corporation to store 5.3 million barrels for five years.
In plain terms = Japan, South Korea, and now Singapore — Aramco is lining up a chain of forward depots along Asia's coastline, bringing crude closer to buyers and cutting response time when supply is disrupted.
What to watch next?
The key milestone: whether negotiations close within months as planned. That is the first signal of whether the H2 2027 timeline will hold.
This reflects a broader shift in Aramco's Asia strategy — from one-off storage deals to a systematic forward-positioning network, with each new site strengthening its pricing leverage and emergency-response reach across the region.
Saudi Energy Minister Prince Abdulaziz bin Salman said pushing supply closer to key Asian markets will enhance network flexibility and support Singapore's supply security.
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