Essar, IRH sign $500m crude sourcing and feedstock deal
India’s Essar Group and International Resources Holding (IRH) have completed a $500 million agreement for a crude sourcing and product supply facility aimed at strengthening stock supply and enhancing trading flexibility for the Stanlow oil refinery in the UK.
The facility, agreed between Essar Energy Transition Fuels (EETF) and IRH Global Trading, is designed to diversify crude sourcing options, expand market access for refined products, and optimise working capital arrangements.
The deal comes at a time when refiners are facing heightened volatility in global energy markets due to loss of Russian supplies, alongside persistent geopolitical instability in key producing regions, and increasing pressure to secure reliable feedstock supplies.
Thus, access to diversified supply channels and integrated trading capabilities has become critical to maintaining margins and operational stability.
Strengthening market access
According to Essar, the deal would enhance the refinery's capacity to adapt to shifting market conditions and extract profit from both its trading and refining businesses.
EETF owns and operates the Stanlow refinery, which is one of the UK's largest refining complexes. It plays a key role in domestic fuel supply, accounting for a significant share of road transport fuel demand. Its strategic importance has grown amid broader concerns over Europe’s refining capacity constraints and energy security.
Against this backdrop, EETF has begun pursuing a broader strategy focused on industrial decarbonisation and low-carbon energy investments in the UK. It also plans to reduce Stanlow’s emissions by 90%.
The company said the transaction with IRH forms part of its efforts to build stronger relationships with major players across the global energy value chain.
Bolstering the energy infrastructure
IRH Global Trading, a subsidiary of Abu Dhabi-headquartered IRH, acts as a global energy trading and liquidity provider. The parent company has investments across various verticals, such as critical minerals and other resources linked to the energy transition.
For IRH, this deal means an expanding role in global energy trading, as Gulf countries look to diversify their economies.
Prashant Ruia, Chairman of Essar Energy Transition, described the agreement as a strategically important transaction for the Stanlow refinery.
“We are delighted to partner with IRH Global Trading on this strategically important transaction for our Stanlow refinery in the UK,” Ruia said.
Ali Rashed Al Rashdi, Chief Executive Officer of IRH, said the partnership would support supply security and operational resilience at one of the UK’s key refining assets.
“We are pleased to partner with Essar Energy Transition Fuels to enhance supply security and operational resilience at a critical UK refining hub,” Al Rashdi said.
