Ottawa gives nod to west-to-east oil pipeline

It would be up to the National Energy Board to approve such projects, and TransCanada has not yet formally submitted the proposal for scrutiny.

"To the extent that there are regulatory reviews, of course we respect that, and our support would be contingent on those reviews coming out positive."

Another proposal would see Enbridge Inc. expand capacity on some pipes in the Great Lakes region and reverse the flow of another line between Montreal and southern Ontario – the so-called Line 9 pipeline that currently brings imported oil to a refinery in Sarnia, Ont.

Environmental groups have mounted a campaign against the Line 9 reversal, calling it just one more step towards creating an eastern route for "dirty" oilsands exports.

"You don't have the issue of the construction and the potential environmental impact which has to be assessed," Oliver said.

Greenpeace is encouraging the Quebec government to turn down the pipeline proposal, saying it's convinced that Enbridge plans an eastern export route for oilsands crude from Alberta.

After meetings with her counterparts from other provinces in November, Quebec Premier Pauline Marois agreed to set up working groups to examine the economic benefits and environmental risks of pumping Alberta crude through Quebec.

Alberta Premier Alison Redford and New Brunswick's David Alward have also been talking for months about the feasibility of shipping oil to Saint John.

"And that will not solve . . . the conundrum of Eastern Canadian refineries closing down while Western oil has no market in which to sell."

Eastern refineries currently rely on crude imported from overseas, which is more expensive than oil that comes from Western Canada.

A lack of adequate pipeline capacity has also meant Alberta crude hasn't been able to find its way to the most lucrative markets.

A lack of adequate pipeline capacity has also meant Alberta crude hasn't been able to find its way to the most lucrative markets.