Vastar, Blue Dolphin sign gas transport pact

Vastar Resources Inc. has reached an agreement with Blue Dolphin Energy Co. under which Blue Dolphin will provide transportation services for Vastar's natural gas production from High Island Block A-5 in the Gulf of Mexico. Blue Dolphin Energy will build a 3.4-mile, 12-in. diameter pipeline to transport gas from Vastar's High Island A-5 platform to Blue Dolphin 's Black Marlin Pipeline on High Island Block A-6. The 120 MMcfd pipeline is expected to be commissioned within 60 days.


Vastar Resources Inc. has reached an agreement with Blue Dolphin Energy Co. under which Blue Dolphin will provide transportation services for Vastar's natural gas production from High Island Block A-5 in the Gulf of Mexico.

Blue Dolphin Energy will build a 3.4-mile, 12-in. diameter pipeline to transport gas from Vastar's High Island A-5 platform to Blue Dolphin 's Black Marlin Pipeline on High Island Block A-6. The 120 MMcfd pipeline is expected to be commissioned within 60 days.

Blue Dolphin Energy will own a 50% interest in the new pipeline at an estimated net cost of $1.1 million. Both companies are based in Houston.

The company owns a 50% interest in and operates the Black Marlin Pipeline system. Current throughput on the Black Marlin Pipeline is 120 MMcfd, while total capacity is 200 MMcfd.

Separately, Blue Dolphin has purchased for a net price of $230,000 a 5/6 interest in a 12.78 mile, 8-in. pipeline extending from Galveston Area Block 350 to connect with another pipeline on Galveston Area Block 391, 14 miles south of the company's Blue Dolphin Pipeline. This pipeline transports "nominal" volumes of gas, says Blue Dolphin, "but is well-positioned to attract future discoveries in the area."

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