The incident highlighted the need to be aware of the dangers in the use of not only lpg cabinet heaters, but other lpg-fuelled appliances such as barbecues and patio heaters, Southern Fire Region safety officer Barry Gibson, of Dunedin, said.
Such appliances needed to be serviced regularly and owners should undertake their own leak tests when changing cylinders.
The cylinder caught fire after the woman turned on her heater for the first time since its new cylinder had been attached.
The woman, who did not want to be named, said she lit the heater, turned and had walked about four paces when she heard a "woof".
Flames were pouring out of the back of the heater, so she soaked some hand towels and threw them over the cylinder, dousing the flames.
Then she called the Fire Service.
"I'm not a person to panic. I was brought up to handle these sorts of things."
Earlier this year, coroner David Crerar warned how unsafe lpg cabinet heaters could be after four heater-related deaths in the past eight years.
Subsequent testing of the woman's cylinder had shown there was leak in the regulator connection from the cylinder to the heater.
Mr Gibson said leaks could be caused simply by moving an appliance or not tightening the regulator properly.
An inspection of the cabinet heater also showed in the year since it had been serviced, its elements had cracked and it was showing signs of not burning properly which meant it was emitting carbon monoxide.
Cylinder Testing Services owner Tony Young said these problems were common in lpg cabinet heaters and could develop quickly, so regular maintenance checks were essential.