Emergency services were called to a wooded area close to Charles Street at about 12.20am this morning after receiving reports of a blaze.
A gas pipe had ruptured, resulting in a fire which saw flames leaping several feet into the air.
A spokesman for Derbyshire fire service confirmed within the past half hour that the blaze was now out.
Investigations are underway to determine what what caused the pipe – which supplies gas to 3,000 properties in the area – to rupture.
Nobody was injured and no evacuations were needed.
Eyewitness Kenny Robertson said: “We drove into Aldi car park around midnight. The fire looked like the pyrotechnics from a Kiss concert or something. It was making a wooshing sound like a giant deodorant can, so we called the fire brigade and backed off just as the police were arriving.”
Police have closed Charles Street at its junction at the Bridge Street roundabout and at the opposite end while gas and electrical engineers continue their work.
The Aldi supermarket, which is near to the ruptured pipe, was closed but has now reopened.
VIDEO COURTESY OF DEAN GERRARD AND KENNY ROBERTSON