Saudi aramco wants to double its overseas oil storage capacity, and Singapore could be its next major location.
Saudi Arabia and Singapore signed an initial agreement on Monday to store Saudi crude in underground facilities on Jurong Island, with operations expected to begin in the second half of 2027.
Aramco would use existing storage facilities owned by Singapore's government. The site can hold around 9mn barrels, although the amount reserved for Saudi oil hasn't been disclosed.
Aramco already has oil storage arrangements across Asia, including:
Japan's Okinawa: 8.2mn barrels.
Japan's Kiire terminal: 3mn barrels.
South Korea's Ulsan: 5.3mn barrels.
China's Zhoushan: access to up to 18.6mn barrels under a refinery-linked arrangement.
The idea is simple: more warehouses near your biggest buyers, instead of relying entirely on shipments from the Kingdom.
Aramco CEO Amin Nasser told Al Arabiya last week that the company wants to double its overseas storage capacity and is working with foreign governments to gain access to their strategic oil reserves.
The push comes as regional conflict disrupts shipping routes and threatens Saudi energy infrastructure.
For Aramco, storing more oil abroad could help keep supplies moving when tankers face delays or export routes are disrupted.
