Blue Dolphin Energy Enters New Pipeline Transportation Deal

Blue Dolphin Energy Company's subsidiary, Blue Dolphin Pipe Line Company, has entered into gas and condensate transportation agreements with a new customer to deliver production into the Blue Dolphin Pipeline system. The production will be delivered into the system in Galveston Block 273. The Company expects transportation services for this producer/shipper to commence in the third quarter. Throughput volumes are not yet known. This is the fourth new customer to contract with the Company for the provision of transportation services in the past eleven 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.

Blue Dolphin Energy Company is engaged in the gathering and transportation of natural gas and condensate.