The explosion happened near the Lidong Chemical Plant early Friday local time, according to SCMP.
Weibosphere, a website highlighting Chinese social media trends, reported social media users posting photos of bodies strewn in the streets, and extensive damage to cars and a ruptured city street.
SCMP reported the Quingdao government as saying an oil pipeline ruptured and caused an oil spill.
Quingdao, a major city in eastern China, has a population of nearly 8 million people.
This story is developing, and will be updated as we learn more.