Abstract: A process of producing a town-gas-grade fuel gas having a calorific value below 18,000 kJ/standard m.sup.3 (4,300 kcal/standard m.sup.3) by a catalytic reaction of methanol and water vapor under a pressure of 10 to 50 bars is disclosed wherein 80 to 95 percent of the mixed feedstock (methanol and water vapor) is fed in a water vapor to methanol weight ratio of 0.5 to 1.5 to a first reaction zone where it is maintained at a temperature of 300.degree. to 700.degree. C. in contact with a nickel catalyst containing 25 to 50 weight percent nickel, the remainder of the mixed feedstock being mixed with the effluent gas from the first reaction zone and together passed to a second reaction zone at a temperature of 200.degree. to 400.degree. C. and therein contacted with a copper catalyst containing 40 to 70 percent by weight copper.