An underground explosion in New York City killed at least one and caused panic near Grand Central Station for many people returning home to New Jersey Wednesday.

?What appears to have happened is a steam pipe 24 inches in diameter, installed in 1924 burst. It may have burst from cold water from the rain,? New York City Mayor Michael Bloomberg said at a news conference near the scene of the explosion.

The explosion slowed the evening rush hour commute and frightened many New Jersey commuters. "It looked like 9/11 again. People were running and screaming, couldn't get a call out or a call in," Rosa Bermudes, of Garfield, said.

Word on the streets quickly spread that it was an underground explosion and not a terrorist attack.

"There is no reason to believe whatsoever that this is anything other than a failure of our infrastructure," Mayor Michael Bloomberg said at a news conference at the scene of the blast.

Sixteen people were taken to Bellevue Hospital, including the person who died, said spokesman Stephen Bohlen. He said two seriously injured patients were being treated in the hospital's trauma unit. The remainder suffered minor injuries, he said.

Two people who were seriously injured were being treated at New York Weill-Cornell Medical Center. They were in critical condition, said hospital spokeswoman Emily Berlanstein.Several people were injured, at least four of them seriously. Sixteen people were taken to Bellevue Hospital, including the person who died, said spokesman Stephen Bohlen.

AP wire reports contributed to this story.

Click here for extended footage of NYC steam pipe explosion