New York rocked by petrol barge blast

ONE man was killed and two people were missing after a barge carrying gasoline exploded off New York's Staten Island yesterday, sending flames and huge clouds of black smoke high into the air.

However, officials in a city already jittery about security said it was an accident.

The blast occurred at 10.10am EST at an oil terminal 16 miles southwest of Manhattan, where residents have been on edge and police on the highest security alert possible since the September 11 attacks destroyed the World Trade Center.

Two workers were unaccounted for and one worker was admitted to hospital with serious burns, officials said.

"There is absolutely no evidence and no reason to think that this is anything other than a very tragic industrial accident," New York Mayor Michael Bloomberg said at a news conference near the scene.

"Two people are missing and we fear the worst for them."

Initial reports from the New York fire department and shipping sources said the barge was carrying propane or heating oil at the Port Mobil terminal owned by Exxon Mobil Corp, but the company later said it contained unleaded gasoline.

"Shortly after the explosion we saw a huge plume of smoke rising up from the area," said Yehuda Farkas of the New York State emergency medical services on Staten Island, one of the city's five boroughs.

The terminal is in an industrial area but people on Staten Island and nearby New Jersey towns felt a blast and could smell the fumes. The New York mayor said a few people who live near the fire were briefly evacuated.

"All of the damage was confined to the barge and the very immediate vicinity, within yards," Mr Bloomberg said.

Waterways leading into New York Harbour were open, except for the Arthur Kill between Staten Island and New Jersey.

A federal law enforcement official said FBI agents will be sent to the scene but it likely was an industrial accident.

"As far as terrorism or whether it was criminal in nature, there are no indications, but it is too early to make any assessment," the official said.

ExxonMobil, the world's largest oil company, said in a statement that a barge containing 100,000 barrels of unleaded gasoline was being unloaded when an explosion occurred.

"Our focus is on putting the fire out and ensuring the safety of the public and our employees," the firm said.

Barge number 125 is owned by Bouchard Transportation Company of Hicksville, New York. It was built in 1975 and was 340 feet long, 74 feet wide and 30 feet deep. It could carry 118,000 barrels of light oil products such as gasoline and heating oil.

Shipping sources said a second barge full of gasoline was loading when the barge in front of it exploded. The second barge has been removed.

The explosion and fire rattled investor nerves already skittish over a possible US-led war against Iraq, sending the Dow Jones industrial average down almost 0.8% to 7,854.38.

The Dow later recouped its losses as fears the explosion was set off deliberately subsided.