An electricity transformer burst into flames killing two people in Bangkok.

The device, tangled in a mess of black cables, overheated while spewing sparks and smoke in the Sampheng district of the Thailand capital on June 26.

Footage shows how the fire quickly spread to adjoining shophouses and allegedly caused the gas cylinders of a nearby eatery to explode, triggering panic near Bangkok's Chinatown district.

Residents fled to safety as more than 20 fire trucks and firefighters rushed to douse the flames, which took roughly three hours to fully extinguish.

Officers said two people were killed. They were Jirapat Soommak, 52, and a Cambodian worker named Petchduan, 34.

Both of them were reportedly trapped while working inside a shop selling paper and plastic packaging. Owner Surachat Kittirudeekul denied that the fire originated from his store, which he claimed was fitted with smoke detectors.

Meanwhile, nine others suffered smoke inhalation, including seven firefighting volunteers.

Four buildings, three cars, and four motorcycles were also damaged.

Affected locals will be receiving from the Samphanthawong District Office 49,500 THB (1,398 USD) per household, while the bereaved will be given 29,700 THB each to help cover funeral costs (838.79 USD).

Bangkok Governor Chadchart Sittipunt said the source of the fire was an old power transformer that exploded and spread throughout the market community.

The Metropolitan Electricity Authority said it will continue to investigate the specific cause of the incident.