Edmundston Mayor Cyrille Simard had wanted assurances the route for the west-to-east pipeline would not harm his city's watershed area and wouldn't run close to residential neighbourhoods.
Philippe Cannon, a spokesman for TransCanada's (TSX:TRP) project, says a new route was proposed during an open house held by the company in Edmundston on Wednesday.
Cannon says the company will shift the pipeline over four kilometres away from its original route so that it runs about 20 kilometres north of Edmundston and 16 kilometres from the watershed area.
Simard says he's happy the company has listened and the risk level appears to have been reduced by the new route proposal.
He says the city will continue to seek assurances on other risks such as pipeline leaks and fire response before it takes a final position on the project.
The $12 billion project would see oil shipped from Alberta to the Irving Oil refinery and a proposed export terminal in Saint John.
Cannon said the company will file an application on the development with the National Energy Board sometime in 2014.