Blue Dolphin Energy Signs Up New Customer on Blue Dolphin Pipeline System

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.

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