Coal is processed by liquefying the coal with a hydrogen-donor solvent under a short-contact-time liquefaction, separating the coal liquid effluent into liquid phases of distinct polarity and an undissolved coal residue, upgrading a portion of the liquid phase, gasifying the residue and high polarity coal liquid to produce a synthesis gas which is used to form methanol. The methanol is catalytically converted to gasoline products. Solvents for liquefaction and effluent separation can be derived from the upgraded liquid phase, methanol and gasoline products. Hydrogen for liquefaction, methanol synthesis and upgrading is derived from the synthesis gas.