Abstract: A process is described for the production of methane from methanol by catalytic dehydration and dehydrogenation providing a high initial methane yield and a final substitute natural gas product of high calorific value. The catalytic dehydration and dehydrogenation steps may be effected simultaneously or in sequence. High efficiency in usage of raw materials and thermal requirements of the process are secured. A preferred catalyst containing both dehydration and dehydrogenation functions consists essentially of a major amount of iron oxide and minor amounts of chromium oxide and phosphate or tungstate ions.