Blue Dolphin Energy says that its wholly-owned subsidiary, Blue Dolphin Pipe Line Company ("Company"), has entered into gas and condensate transportation
agreements with a new customer to deliver production into the Company's Blue
Dolphin Pipeline system. The production will be delivered into the system in
Galveston Block 287. The Company expects transportation services for this
producer/shipper to commence late in the fourth quarter. Throughput volumes
are not yet known. This is the third new customer to contract with the
Company for the provision of transportation services in the past three months.
The Blue Dolphin Pipeline system gathers and transports gas and condensate
from various offshore fields in the Galveston Area in the Gulf of Mexico to
shore facilities in Freeport, Texas. The Company owns an 83% undivided
interest in the system.