Jeddah (Commerce Desk): Singapore and Saudi Aramco have planned to store Saudi crude oil in underwater facilities in Singapore from 2027, aiming to strengthen energy security amid potential disruptions to global oil supplies.
According to a foreign news agency, Singapore’s Minister for Energy, Trade and Industry, Tan See Leng, announced the joint initiative on Monday during the Singapore Energy Lecture 2026.
Under the plan, Saudi Aramco will begin storing Saudi crude oil in underwater facilities in Singapore in the second half of 2027. The move comes amid growing concerns over disruptions to global oil supplies.
According to the report, the global energy sector faced serious challenges this year following the closure of the Strait of Hormuz, while recent Houthi attacks on Saudi Arabia’s airports and energy infrastructure have further complicated the situation.
Tan See Leng said the current crisis involving the Strait of Hormuz would not be the last disruption to oil and energy supplies, warning that similar challenges could arise in the future.
Meanwhile, Singapore also plans to build another terminal by 2030 to increase its liquefied natural gas (LNG) storage and supply capacity by 50 per cent.