EXHIBIT 99.1


PRESS RELEASE

FOR IMMEDIATE RELEASE
June 27, 2007

BLUE DOLPHIN ENERGY COMPANY  SUBSIDIARY ENTERS INTO NEW PIPELINE  TRANSPORTATION
AGREEMENTS

Houston,  June 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  shipper  to  deliver  production  from two  wells  into its Blue  Dolphin
Pipeline System.  Production will be delivered into the system in Galveston Area
state tract 348. The Company expects transportation services for this shipper to
commence  during the third quarter 2007.  Throughput  volumes are not yet known.
This is the  second  new  shipper  that  Blue  Dolphin  Pipe  Line  Company  has
contracted with in the past thirty days. The earlier announced agreement was for
shipments through the Company's  Galveston Area 350 Pipeline.  Blue Dolphin Pipe
Line Company owns an 83%  undivided  interest in both the Blue Dolphin  Pipeline
System and the Galveston Area 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:
Michael J. Jacobson
President
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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