Explosion hits gas pipeline in Egypt's North Sinai
The blast took place in the Sabika area to the city's west, the source added.
Witnesses told AFP that smoke and flames from the fire were visible some 30 kilometres (almost 20 miles) away.
The cause of the blast was not immediately clear.
Provincial governor Mohammed Abdel Fadil Shousha said in a statement that the blast did not cause any casualties and "will not impact the gas supply" to the city.
Security forces were searching the area and authorities have opened an investigation, the statement added.
In February 2018, authorities launched a nationwide operation against militants, focusing on North Sinai.
Earlier this year, the Islamic State group said it blew up a gas pipeline around 80 kilometres west of El-Arish, claiming it was connected to Israel.