Part of the building collapsed after the blast at around 5 AM in Huludao City, according to a statement from the city publicity office.
One person died at the scene while two succumbed to their wounds in hospital.
Eight residents were rescued and three passers-by were injured and remain in hospital. One person is still trapped under the rubble.
"I thought it was earthquake," said a resident who was caught in the blast.
The explosion is believed to have been caused by a gas leak.
A similar explosion in Huludao City on May 31 had left two dead and 11 injured.
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