"It sounded like a bomb going off underground," local resident Karin Kaeser said.

"I was awake in bed when I heard it, then I went on my verandah to look for fire," she said.

Ms Kaeser spoke to several other residents and found they had also heard the loud noise.

Both the Navy Wharf and local gas supplier Origin Energy assured the Magnet none of their infrastructure or facilities were involved, nor did they have any knowledge of what may have caused the sound.

No reports were made to the police in regards to the alleged explosion.

Australian Geosciences recorded no seismic activity, but said the noise may have been the result of a sonic boom, which occurs when aircraft breaks through the sound barrier.