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)
                      November 27, 2006 (November 21, 2006)

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




           Delaware                        0-15905               73-1268729
(State or other jurisdiction of   (Commission file number)    (I.R.S. Employer
Incorporation or organization)                               Identification No.)


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


                                 (713) 227-7660
                           (Issuer's telephone number)



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  November  27,  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  November  21,  2006 to provide  pipeline  transportation  services  to a new
customer.


ITEM 9.01         FINANCIAL STATEMENTS AND EXHIBITS.

         (c)      Exhibits

                  99.1     Blue Dolphin press release issued November 27, 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:   November 27, 2006.

                           BLUE DOLPHIN ENERGY COMPANY



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




















                                INDEX TO EXHIBITS


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

99.1              Blue Dolphin press release issued November 27, 2006.

EX-99.1

                                  EXHIBIT 99.1


PRESS RELEASE

FOR IMMEDIATE RELEASE
November 27, 2006

BLUE DOLPHIN ENERGY COMPANY  SUBSIDIARY ENTERS INTO NEW PIPELINE  TRANSPORTATION
AGREEMENTS

Houston,  Nov. 27 / PRNewswire / -- Blue Dolphin Energy Company  (NASDAQ:  BDCO)
("Blue Dolphin"), an independent oil and gas company with operations in the Gulf
of Mexico, today announced that 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.  For  further
information visit the Company's website at http://www.blue-dolphin.com.

Contact:
- --------
Gregory W. Starks
Vice President and Treasurer
713-227-7660

Certain of the  statements  included  in this  press  release,  which  express a
belief,  expectation or intention,  as well as those regarding  future financial
performance or results, or which are not historical facts, 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,  including
but not limited to  industry  conditions,  prices of crude oil and natural  gas,
regulatory changes,  general economic conditions,  interest rates,  competition,
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.

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