Emergency services rushed to the scene following frantic calls from residents who heard a loud bang in Stanley Street, Mold, Flintshire, just after 9am.
More than 30 residents were evacuated following the blast at a house and the injured man, named locally as David Roberts, was taken to Wrexham Maelor Hospital with burns to his hands and face.
Two other people were treated at the scene suffering from shock.
Darren Hulley, 41, who lives opposite the house where the explosion happened, rushed out into the street when he heard the noise, and dragged the injured man - whose name hasn't been released - to safety.
Mr Hulley told the Evening Leader: "I thought there had been a crash in the street but when I went out their front door was on the other side of the road, spilt in two.
"The windows had been blown out and there was broken glass everywhere."
As Darren ran across to the house, he heard moaning and spotted a man on the floor of the hallway of the property.
"His fleece was smoldering and although he wasn't on fire, there was smoke coming off him.
"I pulled him out of the doorway and into the street. His hands were all burnt and he was in real pain. We took him into a neighbour's house and called the emergency services.
"By the time the fire engines and ambulances arrived the street was utter chaos.
"People didn't know what was going on - I was in complete shock."
Stanley Street, Chapel Street and Gladstone Street were all cordoned off this morning.
Speaking at the scene, fire safety enforcement officer Bob Mason said: "On arrival we saw that there had been an explosion, but there was no fire to extinguish.
"We are now continuing to support other agencies to find a resolution to the incident."
Charlie Williams, chairman of the nearby Mold ex-servicemen's club, was told the injured man was "lucky to be alive".
Evacuees were left in the cold while emergency crews checked their homes for any further leaks.
Wales and West Utilities workers drilled into the tarmac on Stanley Street to gain access to the pipe works underneath the road, as part of the investigation.
A spokesman said: "There is an investigation ongoing into what has happened but it is too early at this stage to speculate on the cause."
Stanley Street resident Tanya Gittins walked passed the house ten minutes before the explosion with her children, aged two and four.
She said: "When I walked passed the house, it stunk of gas.
"When I came back from dropping the kids off I couldn't get back into the house and people told me there had been a gas explosion.
"It just makes me sick to think what could have happened if I had walked passed the house just 10 minutes later - everyone is in an utter state of shock."
Police and North Wales Fire and Rescue Service have launched an investigation into the cause of the blaze.
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