At $16.7 billion, exports of liquid petroleum gas ("LPG"), better known as propane, is nearly on par with gold exports. The LPG category, which includes numerous other forms of liquefied hydrocarbon gases -- including ethane, butane, and methane -- also known as liquid natural gas or LNG, is a profitable derivative products of the Canadian oil industry. Canada produced nearly 7 million cubic meters of propane in 2011, and it is the sixth largest propane producer in the world.

The latest statistics from Canada's Natural Energy Board show that of the 182.2 thousand barrels per day (b/d) in 2009, 82.6 thousand b/d were consumed domestically, and the remaining 100.3 thousand b/d were shipped to the United States (a small amount of imports make up for the discrepancy between total production and the distribution breakdown).

Canada is the world's third largest natural gas producer -- behind Russia and the United States -- with an average annual production of 6.4 trillion cubic feet. However, since production peaked in 2002, output has stumbled. It is believed that, in the face of low domestic prices and high production costs, the average daily yield is likely to be drop to the lowest level since 1993.

Still, yesterday, London-based BG Group (BG.L) announced plans to begin construction on an 850-kilometer pipeline, a key element of its proposed LNG export facility in Rupert Prince, British Columbia. Houston-based Spectra Energy (SE) will potentially partner with BG on building the pipeline. The move is part of the $20 billion expected to be spent in the next two to nine years opening up Canada's LNG supplies to Asian demand, which is expected to grow by 20% in the next four years, according to Keith Schaefer, writing for Seeking Alpha.

(Read more about liquid natural gas development in North America in China and Singapore Latest to Invest in US LNG Facility.)