SINGAPORE, Oct 26 — Singapore and Saudi Arabia plan to establish a crude oil storage arrangement at Singapore’s Jurong Rock Caverns, with operations expected to begin in the second half of 2027, the two countries said on Monday, reported Xinhua.

Singapore’s Ministry of Energy, Trade and Industry and Saudi Arabia’s Ministry of Energy announced the joint initiative, marked by an exchange of a memorandum of understanding between Saudi Aramco and Singapore’s Energy Market Authority and JTC Corporation, with negotiations expected to wrap up within months.

The proposed arrangement will see Saudi crude oil stored at the underground facility on Jurong Island, helping Singapore meet its energy needs during supply disruptions and strengthening its energy security and resilience.

It will also enhance the resilience of Saudi Arabia’s crude oil supply chain in Southeast Asia, the countries said. — Bernama-Xinhua