Saudi Arabia will store its crude oil in Singapore’s Jurong rock caverns from the summer of 1406 to strengthen supply security in Asia.

The energy ministers of the two countries announced their joint intention on 4 Aban. Tan See Leng, Singapore’s Minister of Energy, Trade and Industry, said during the Singapore International Energy Week that the mechanism would strengthen the resilience of Saudi Arabia’s oil supply chain in Southeast Asia and ensure Singapore’s energy security.

He said Aramco will sign a memorandum of understanding with the Energy Market Authority and the company GTC, and the two sides will try to conclude the talks within the coming months.

Prince Abdulaziz bin Salman Al Saud, Saudi Arabia’s Minister of Energy, said in a video message that bringing supply closer to Asian markets will strengthen the flexibility of the supply network.

The U.S.-Israel war with the Islamic Republic has severely disrupted the supply of energy to Asia through the Strait of Hormuz. Before the war, Asia imported two-thirds of its oil from the Middle East.

Singapore will become the third Asian country after Japan and South Korea to store Saudi Arabia’s crude oil.