Dozens of people are being treated in hospital after a fire caused by a burst gas pipe spread to homes and sent a fireball soaring into the sky near Kuala Lumpur.

Windows shattered and flaming debris rained from the sky after the fire broke out at the gas pipeline operated by Malaysian state energy giant Petronas on Tuesday.

The blaze near a petrol station in Putra Heights on the outskirts of the capital Kuala Lumpur was visible for kilometres and lasted for several hours.

At least 305 people were affected, including those left homeless after some 190 homes were damaged.

The fiery blast happened on a public holiday as Muslims, who are the majority in Malaysia, celebrate the second day of Eid.

Petronas said the fire started at one of its gas pipelines about 8am on Tuesday.

The flames, which had been 20 storeys high at one point, were small enough for firefighters to approach by midafternoon, the Selangor state fire department told the Star newspaper.

At least 49 houses were damaged and 112 people were injured, with 63 sent to the hospital for burns, breathing difficulties and other injuries, Selangor Deputy Police Chief Mohamad Zaini Abu Hassan was quoted by national Bernama news agency as saying.

Selangor Chief Minister Amirudin Shari said the fire department evacuated nearby homes as a safety measure. Residents were being housed in nearby mosques until the emergency eased.

Pictures and videos of the fireball went viral on social media, with some residents saying they felt a strong tremor with the doors and windows of their homes shaking.

Lee Weng Ken, who suffered burns to his left leg, said he was shocked when the ceiling of his house collapsed and crushed his vehicle parked in the compound of the house.

“I rushed out of my house but fell and suffered burns due to the heat from the blaze near my house,” he told Bernama.

Another victim, who only wanted to be known as Andy, told Bernama he ran out of his home with his children when they felt tremors and saw the raging fire about 100 metres away.

“I could only take the car out. My 18-year-old daughter injured her foot when she fell while climbing the fence due to the heat, he said.

Petronas said three petrol stations were closed as a precaution, though they were not affected. Investigations were still under way.

-with AAP