The pipeline, operated by the state-owned oil giant China National Petroleum Corporation (CNPC) in the town of Shazi in Guizhou province, sprang a leak after it was crushed by a landslide triggered by heavy rains, Xinhua reported.
It blew up around 10:00 am (0200 GMT). Emergency workers put out the blaze and evacuated residents, Xinhua said, citing rescuers.
Industrial accidents are common in China, where safety standards are often lax.
Last year a pipeline explosion at a power station in central China killed at least 21 people.
In 2015, giant blasts killed at least 165 people in the northern port city of Tianjin, causing over $1 billion in damage and sparking widespread anger over a perceived lack of transparency by officials about the accident's causes and environmental impact.
A government inquiry into the Tianjin accident released in February 2016 recommended 123 people be punished.
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