Riyadh and Singapore signed an agreement to store Saudi raw materials in underground tanks in Singapore from the second half of 2027 to ensure security of supply to Southeast Asia.
Operations to store Saudi oil in Jurong underground reservoirs are expected to begin in the second half of 2027, TASS reports citing Singapore's Ministry of Energy, Trade and Industry.
The Singapore department noted that the creation of the storage facility would help meet the country's energy needs in the event of supply disruptions. The initiative also aims to improve the reliability of the supply chain for Saudi raw materials throughout Southeast Asia.
At the beginning of October, at a meeting in Manila, Saudi Arabia and the United Arab Emirates expressed their willingness to help the ASEAN countries build oil reserves to overcome the weak points in the Gulf crisis. Due to insignificant internal reserves, the region faces a shortage of raw materials, so Southeast Asia decided to introduce the Japanese model, in which reservoirs are leased to exporters from the Middle East in exchange for the first right to purchase hydrocarbons in crisis situations.