If you really want to produce a liquid transportation fuel from methane, the usual approach is F-T synthesis: http://en.wikipedia.org/wiki/Fischer%E2%80%93Trop

If you really want to produce a liquid transportation fuel from methane, the usual approach is F-T synthesis: http://en.wikipedia.org/wiki/Fischer%E2%80%93Tropsch_process http://en.wikipedia.org/wiki/Fischer%E2%80%93Tropsch_process Generally, it hasn't been very economical to do so, although I wonder what the numbers are now that we've got so much natural gas production in the US.