Methanol production process using a high nitrogen content synthesis gas with a hydrogen recycle

A process for converting natural gas to methanol or products derivative of methanol, comprising the steps of:

• partially oxidizing natural gas with an oxidant stream to form a synthesis gas containing H.sub.2, CO and CO.sub.2 in a ratio of (H.sub.2)/(2CO+3CO.sub.2) less than 1.0;
• combining the synthesis gas with a hydrogen rich recycle gas stream secured as a permeate gas stream from diffusion of a tail gas stream remaining after completion of methanol recovery through a semipermeable membrane preferential for permeation of H.sub.2 in preference to N.sub.2, said hydrogen rich recycle gas stream being used in an amount that provides a combined synthesis-recycle gas stream containing H.sub.2, CO and CO.sub.2 in a ratio of (H.sub.2)/(2CO+3CO.sub.2) which is greater than that of the synthesis gas;
• passing said combined synthesis-recycle gas stream into a plurality of contacts with a methanol conversion catalyst with recovery of methanol from said gas stream between contacts with a methanol conversion catalyst to form after the last methanol recovery step a tail gas stream from which the hydrogen rich recycle gas stream is secured by diffusion.