India’s Essar Group and Dubai based International Resources Holding (IRH) have announced the execution of a $500 million crude sourcing facility and product supply facility between Essar Energy Transition Fuels and IRH Global Trading.

This comes a day after American President Dolald Trump announced the U.S.-Iran peace deal, indicating gradual normalisation of situation in West Asia.

While IRH Global Trading is a key global energy trading and liquidity provider,  Essar Group through Essar Energy Transition Fuels, owns and operates the Stanlow Refinery U.K..

The facility will enable Essar Energy Transition Fuels to diversify the crude sourcing and marketing options for its products while optimising its working capital arrangement.

It will also strengthen feedstock security in an increasingly volatile global energy market, enhancing its ability to respond to changing market conditions and capture value across its refining and trading activities.

Prashant Ruia, Chairman, Essar Energy Transition, said, “This is a strategically important transaction for our Stanlow refinery in the U.K.”

Ali Rashed Al Rashdi, CEO of IRH, said this partnership will enhance supply security and operational resilience at a critical U.K. refining hub.