Saudi Arabia Signs Oil Storage Deal with Singapore for Jurong Rock Caverns

Saudi Arabia has reached an agreement with the Singaporean government to store crude oil in underground caverns in the city-state, Bloomberg reported, following Houthi attacks on Saudi oil infrastructure over the weekend. Deliveries to the Jurong Rock Caverns, part of a petrochemical complex in southern Singapore, are set to begin in the second half of next year. The caverns hold 1.47 million cubic meters of crude oil, condensates and other liquids, equivalent to 9 million barrels. Saudi Aramco is seeking additional storage capacity abroad as the Persian Gulf war expands to the Red Sea, disrupting the kingdom's exports and forcing the producer to use ship-to-ship transfers in the Gulf of Oman and tankers via the Suez Canal. Singapore Energy Minister Tan See Leng said the arrangement bolsters supply-chain resilience in Southeast Asia, while Saudi Energy Minister Prince Abdulaziz bin Salman said closer supply to Asia would strengthen network flexibility.