* Sunoco plans third West Texas crude pipeline * New line to carry West Texas crude to the Gulf Coast By Janet McGurty NEW YORK, April 11 Sunoco Logistics on Wednesday announced open season for crude oil shippers to lock in space on its a new pipeline designed to carry West Texas to its storage terminal on the Gulf Coast, helping to alleviate the glut of crude in the region. The line will initially be able to carry up to 40,000 barrels per day of West Texas Sour from fields in the western part of the state to Sunoco's crude terminal in Nederland, Texas, just east of Houston. It is planned to come online in the first quarter of 2013. The once-dwindling output from the traditional producing fields of the Permian Basin in West Texas has been revived by new technologies used to drill in tight oil sands like Eagle Ford in Texas and the Bakken in North Dakota. Transportation to carry both West Texas Sour and West Texas Intermediate out of the regional oil hub of Midland has been lagging output, pushing down the price of regional crudes to almost $10.00 a barrel under the U.S. crude benchmark, West Texas Intermediate. This is the third line Sunoco has in the works to alleviate the West Texas crude glut. Its 40,000 bpd line carrying crude from West Texas to Houston began earlier this month. Sunoco is also planning a 30,000 bpd line to carry crude from West Texas to the Mid-Valley pipeline in Longview, Texas in the northeastern part of the state. It is expected to be operational in January 2013. Growing Canadian and North Dakota production flowing eastward and southward has created a glut of crude in the Midwest, depressing WTI-based U.S. crudes compared to crudes priced against the world market benchmark, Brent. Refiners in the largest U.S. refining complex on the Gulf Coast have been paying steep world prices for crude, keeping U.S. fuel prices high, while refiners in the Midwest have been paying low WTI-based prices, selling at higher national average prices, and making huge profits. That spread, and the mid-continent advantage enjoyed by that regions refiners, is expected to shrink with reversal of pipelines such as Seaway. Partners Enterprise Products and Enbridge Inc expect to start operation on Seaway later this quarter. Also in the works are new lines, such as the TransCanada Corp's planned Keystone Cushing-to-Gulf Coast link. Open season for Sunoco's West Texas to Nederland line begins on April 11, 2012 and will end on May 11,2012.