8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K


                                 CURRENT REPORT


                       PURSUANT TO SECTION 13 OR 15(D) OF
                     THE SECURITIES AND EXCHANGE ACT OF 1934

 Date of Report: (Date of earliest event reported): May 24, 2006 (May 24, 2006)


                           Blue Dolphin Energy Company
             (Exact name of registrant as specified in its charter)



         Delaware                       0-15905                   73-1268729
(State of Incorporation)       (Commission file Number)         (IRS Employer
                                                             Identification No.)

                             801 Travis, Suite 2100
                              Houston, Texas 77002
              (Address of Registrant's principal executive offices)

                                 (713) 227-7660
              (Registrant's telephone number, including area code)



Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

     |_|  Written  communication  pursuant to Rule 425 under the  Securities Act
          (17 CFR 230.425)

     |_|  Soliciting material pursuant to rule 14a-12 under the Exchange Act (17
          CFR 240.14a-12)

     |_|  Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the
          Exchange Act (17 CFR 240.14d-2(b))

     |_|  Pre-commencement  communications  pursuant to Rule 13e-4(c)  under the
          Exchange Act (17 CFR 240.13e-4(c))



ITEM 8.01 OTHER EVENTS.

     On May 24, 2006, Blue Dolphin Energy Company, a Delaware corporation ("Blue
Dolphin"),  issued a press release announcing that its wholly-owned  subsidiary,
Blue  Dolphin Pipe Line  Company,  entered  into  agreements  on May 24, 2006 to
provide pipeline transportation services for a new customer.


ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

          (c)  Exhibits

               99.1   Press Release issued May 24, 2006.



SIGNATURE


     Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, as
amended,  the  registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.

Date:   May 24, 2006.

                                                   BLUE DOLPHIN ENERGY COMPANY


                                                    /s/ Gregory W. Starks
                                                   -----------------------------
                                                   By: Gregory W. Starks
                                                       Vice President, Treasurer













                                INDEX TO EXHIBITS


Exhibit        Description of Exhibit
- -------        ----------------------

99.1           Press Release issued May 24, 2006.

EX-99.1

                                  EXHIBIT 99.1

                                  NEWS RELEASE
                                  ------------


FOR IMMEDIATE RELEASE                                               May 24, 2006

Houston, Texas - Blue Dolphin Energy Company (NASDAQ Symbol: BDCO)

BLUE DOLPHIN ENERGY REPORTS ENTERING INTO NEW PIPELINE TRANSPORTATION AGREEMENTS

Blue Dolphin Energy Company  announced 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
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.  Questions  should be directed to Gregory W. Starks,
at  the  Company's  offices  in  Houston,  Texas,   713-227-7660.   For  further
information see our Home Page at http://www.blue-dolphin.com.

Certain of the  statements  included  in this  press  release,  which  express a
belief, expectation or intention, are "forward-looking"  statements as that term
is  defined  in the  Securities  Act of 1933,  as  amended,  and the  Securities
Exchange  Act of 1934,  as  amended.  The  words  "expect,"  "plan,"  "believe,"
"anticipate,"  "project,"  "estimate,"  and similar  expressions are intended to
identify forward-looking  statements.  These forward-looking  statements are not
guarantees of future  performance or events and such statements involve a number
of risks, uncertainties and assumptions,  general economic conditions,  interest
rates,  and other  factors.  Should one or more of these risks or  uncertainties
materialize or should the underlying assumptions prove incorrect, actual results
and outcomes may differ  materially from those indicated in the  forward-looking
statements.  Readers  are  cautioned  not  to  place  undue  reliance  on  these
forward-looking statements,  which speak only as of the date hereof. The Company
undertakes  no  obligation to republish  revised  forward-looking  statements to
reflect  events  or  circumstances  after  the date  hereof  or to  reflect  the
occurrence of unanticipated events.