Officials said the fire has not yet been contained in Gainsford, a town some 80 kilometres (50 miles) west of Edmonton, after the 13-car Canadian National train derailed.
The train carrying crude and liquid gas left the track for unknown reasons at around 1 am (0500 GMT), federal transport officials said.
Canada's transportation safety board said no one was believed injured in the accident.
Chris Krespki, a spokesman for the board, told media an investigation is underway.