Singapore will begin storing Saudi Arabian oil in underground rock caverns from next year as part of efforts to secure energy supplies amid global disruption from the Middle East conflict. The oil will be housed in the Jurong Rock Caverns, a facility off Singapore’s southern coast with capacity for up to nine million barrels. The deal with Saudi Aramco aims to strengthen the city-state’s energy resilience, according to Energy Minister Tan See Leng, who called it the most significant energy infrastructure build-up in decades.
The city-state also plans to add five gas-fired power plants, boosting electricity generation by 26 per cent over the next decade. As Asia’s energy trading hub, Singapore relies on imported gas for 95 per cent of its electricity, leaving it vulnerable to supply shocks. This vulnerability was highlighted when Indonesia announced it would cut pipeline gas exports by about 31 million cubic feet a day to meet domestic demand.
Prime Minister Lawrence Wong said the government is investing in liquefied natural gas import facilities and evaluating nuclear power. He emphasized that Singapore expects all parties to honor contractual commitments and will take steps to protect its interests. Saudi Energy Minister Prince Abdulaziz bin Salman noted that bringing supply closer to Asian markets strengthens supply network flexibility and supports Singapore’s energy security, adding that the cooperation could expand further.
Source: Financial Times Companies · Summarized by HeadlinesBriefing