The fire started around 9 AM in Jingjiang city.
Of the 42 tanks in the facility, two had burned up and the fire had spread to another five, state-run Xinhua news agency reported. However, there are no casualties, officials said.
Foul-smelling smoke is still billowing from the storage site.
More than 400 fire fighters are working to put out the blaze and reinforcements from nearby cities are coming to help, according to the Fire Department.
The fire department also said that the fire started from pipeline and then triggered fire at the breather valve of gasoline tank.
Photos posted online showed dark clouds of smoke rising from the blaze from the block of storage tanks located at the Jingjiang Port.
The blast recalled huge explosions caused by improper storage of chemicals in Tianjin last August, when at least 165 people were killed and fears were raised of toxic contamination.
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