Aramco aims to double oil storage capacity outside Saudi Arabia

Saudi Aramco is working to double its oil storage capacity outside the Kingdom to protect crude flows to customers in the event of export route disruptions. Amin Nasser, President and CEO of Aramco, stated that the company is focusing on increasing external inventories, particularly in Asia, which is the largest oil import market.

Aramco currently maintains storage in locations including South Korea, Japan, the Netherlands, and Egypt. In Asia, available capacity exceeds 35 million barrels, with significant holdings in Okinawa, Kirei, and Ulsan. The company also utilizes storage in Zhoushan, China, through its partner Zhejiang Petroleum & Chemical.

The strategy comes amid regional instability and rising shipping costs. Nasser noted that the market has lost approximately 3 billion barrels of supply since the onset of recent crises. To mitigate these risks, the Saudi Ministry of Energy is collaborating with international counterparts to explore access to strategic government reserves to expand the company's options during supply disruptions.