The direct production of methane from heavy hydrocarbons and steam, also known as the single reactor concept, is in its early stages of development. The concept was originated at the University of Wyoming and for the last two years has seen considerable attention at the Babcock and Wilcox Company. The product gas from this reaction contains primarily methane as the combustible constituent, therefore showing promise for use as substitute natural gas (SNG). An economic comparison of this concept, in comparison of other gasification processes currently being developed to produce SNG, shows it to be a more attractive process. The main disadvantage is that the concept has not been shown feasible on a continuous basis.