Gas fire in Sydney harbourside suburb

Gas fire in Sydney harbourside suburb

A road work machine has been engulfed in flames after severing a gas pipe in a harbourside Sydney suburb, with up to 30 people evacuated from their homes.

A road cutting machine sliced through the gas line in Neutral Bay about 7.15am on Tuesday, sparking the fire.

Video from the scene shows the front end of the machine completely engulfed in fire on Aubin Street, with plumes of smoke rising into the air.

Between 20-30 people and five nearby homes have been evacuated, a Fire & Rescue spokesman told AAP.

Seven crews, including HAZMAT teams, worked to extinguish the blaze after the machine caught fire.

Traffic is being diverted.