Blue Dolphin Energy Inks Pipeline Transportation Deals

Blue Dolphin Energy Company, an independent oil and gas company with operations in the Gulf of Mexico, says its wholly-owned subsidiary, Blue Dolphin Pipe Line Company, has entered into gas and condensate transportation agreements with a new customer to deliver production into its Galveston Area Block 350 Pipeline. Production will be delivered into the pipeline in Galveston Block 350. The Company expects transportation services for this shipper to commence late fourth quarter 2006 or early first quarter 2007. Throughput volumes are not yet known. Blue Dolphin Pipe Line Company owns an 83% undivided interest in the Galveston Area Block 350 Pipeline.

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