Abstract: In a process for producing methanol from a gaseous hydrocarbon feedstock, such as natural gas, containing more than the stoichiometric ratio of hydrogen to carbon, the hydrocarbon is subjected to steam reforming to give synthesis gas, the synthesis gas is incompletely reacted over a catalyst to give methanol, methanol is removed from the gas, the unreacted gas is treated to remove carbon monoxide or carbon dioxide from it, and the carbon monoxide or carbon dioxide or both is recycled to the methanol synthesis. By this means the concentration of carbon monoxide or carbon dioxide or both in the gas passing over the synthesis catalyst is kept at a higher level, thus increasing the efficiency of the synthesis and wastage of feedstock is avoided. At the same time a useful high-purity by-product hydrogen stream is produced.