Blue Dolphin Energy subsidiary enters into new pipeline transportation agreement

Co announced that its wholly-owned subsidiary, Blue Dolphin Pipe Line Co, 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 350. The Co expects transportation services for this shipper to commence during Q3 2007. Throughput volumes are not yet known. Blue Dolphin Pipe Line Co owns an 83% undivided interest in the Galveston Area Block 350 Pipeline.