Singapore and Saudi Aramco plan to store Saudi crude oil in underground facilities in Singapore from 2027. The move aims to strengthen energy security in the face of global oil supply disruptions.
According to a foreign news agency, Singapore’s Minister for Energy, Trade and Industry Tan Sri Leng announced the joint project during the Singapore Energy Lecture. Under the project, Saudi Aramco will store Saudi crude oil in underground (under the sea) facilities in Singapore from the second half of 2027. This decision is being made in view of supply concerns.
The global energy sector has faced serious difficulties this year after the closure of the Strait of Hormuz. In addition, the recent attacks by the Houthis on Saudi Arabia’s airports and energy infrastructure have further complicated the global energy situation.
Tan Si Leng said that the current crisis in the Strait of Hormuz is not the last disruption to oil and energy supplies, but that such a situation could arise in the future.
In addition, Singapore has also planned to increase its liquefied natural gas (LNG) storage and supply capacity by 50% by 2030 through the construction of a second terminal.
On the other hand, the International Energy Agency has said that the fuel supply situation remains a concern and it is unlikely that the global oil market will return to the level it was before the war that began with the US-Israeli attack on Iran in February.