An apparatus and method of producing methanol includes reacting a heated hydrocarbon-containing gas and an oxygen-containing gas in a reactor; to provide a product stream comprising methanol; and transferring heat from the product stream to the hydrocarbon-containing gas to heat the hydrocarbon containing gas. After removing methanol and CO2 from the product stream, unprocessed hydrocarbons are mixed with the hydrocarbon containing gas fro reprocessing through the reactor.