CH4 mixed with 1/2 its vol. of O2 is passed over coke or other combustible fuel at 800°-1,000°. The gas mixture is preheated to avoid any condensation or any fluctuation in temperature. The gaseous product, consisting of about 2 vol. H2:1 vol. CO, is then converted into alcohols by the action of suitable catalysts at high temperatures and under pressure. CH4 formed as byproduct is separated and utilized.