SINGAPORE: Saudi Arabia and Singapore have planned to store Saudi crude oil in underground facilities in Singapore from 2027.
The move aims to strengthen energy security in view of disruptions in global oil supply. According to foreign news agency, Singapore’s Minister for Energy, Trade and Industry Tan See Leng announced this joint project on Monday during Singapore Energy Lecture 2026.
Under the project, Saudi Aramco will store Saudi crude oil in underground facilities in Singapore from the second half of 2027. This decision is being taken in view of supply concerns.
After the closure of Strait of Hormuz, the global energy sector has faced serious difficulties this year. In addition, recent attacks by Houthis on Saudi Arabia’s airports and energy infrastructure have further complicated the global energy situation.
Tan See Leng said that the current crisis of Strait of Hormuz is not the last obstacle in oil and energy supply, but such a situation may arise in the future as well. In addition, Singapore has also planned to increase its LNG storage and supply capacity by 50% by 2030 through construction of a second terminal.
On the other hand, the International Energy Agency has said that the fuel supply situation remains a cause for concern and it does not seem that in 2027 also the global oil market will be able to reach the level where it was before the war that started with the US-Israel attack on Iran in February.
Read also: Pakistanis in Saudi Arabia Can Now Book Passport Appointments Online
