Blue Dolphin Enters into New Transportation Agreement

Blue Dolphin Energy Company's wholly-owned subsidiary, Blue Dolphin Pipe Line Company, has contracted with a new shipper to provide gas and condensate transportation services for the shipper's production to be delivered into the Galveston Area Block 350 Pipeline.

The production will be delivered into the pipeline in Galveston Area Block 385. The Company expects transportation services for this shipper to commence in early December 2009. Throughput volumes are not yet known. Blue Dolphin Pipe Line Company owns an 83% undivided interest in the Galveston Area Block 350 Pipeline.