A process for producing methyl tert-butyl ether (MTBE) comprising introducing a butane feed stream (n-butane, i-butane) and hydrogen to a hydrogenolysis reactor comprising a hydrogenolysis catalyst to produce a hydrogenolysis product stream comprising hydrogen, methane, ethane, propane, i-butane, and optionally n-butane; separating the hydrogenolysis product stream into a first hydrogen-containing stream, an optional methane stream, a C2 to C3 gas stream (ethane, propane), and a butane stream (i-butane, optionally n-butane); feeding the butane stream to a dehydrogenation reactor to produce a dehydrogenation product stream, wherein the dehydrogenation reactor comprises a dehydrogenation catalyst, and wherein the dehydrogenation product stream comprises hydrogen, i-butane, and isobutylene; and feeding the dehydrogenation product stream and methanol to an etherification unit to produce an unreacted methanol stream, an unreacted isobutylene stream, and an MTBE stream.