It is believed the blast occurred in the early hours of this morning in an area where munitions seized from a vessel heading to Syria from Iran in 2009 had been dumped.
"There are a number of dead which we cannot confirm yet," a spokesperson for the Ministry of Defence said.
The intensity of the blast caused damage to neighbouring communities and windows and doors of beachside restaurants were blown out.
Police spokesman Michalis Katsounotos said that a fire at a nearby power station had been contained.
A witness told Reuters: "The place looks like it was hit by a massive bomb."
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